THE ESSENCE AND EVOLUTION OF HUMAN CAPITAL MANAGEMENT OF THE ENTERPRISE IN THE CONTEXT OF DIGITAL TRANSFORMATION
Abstract
The article explores the essence and evolution of human capital management (HCM) in the context of digital transformation, highlighting its critical role in ensuring the long-term competitiveness and innovative potential of modern enterprises. The study traces the historical development of the human capital concept, which has evolved from a traditional view of workers as cost factors to a strategic understanding of human skills, knowledge, and competencies as essential organizational assets. Today, human capital is recognized as a key driver of productivity, creativity, and competitive advantage, especially in the era of rapid technological change. Digital transformation is fundamentally reshaping HCM practices, integrating technologies such as artificial intelligence (AI), big data analytics, cloud platforms, and automated talent management systems. These innovations are not only accelerating recruitment and performance evaluation processes but also enabling personalized learning, predictive workforce planning, and data-driven decision-making. The shift towards digital HR requires companies to rethink their organizational structures, invest in employee upskilling, and develop a culture that embraces continuous learning and digital competencies. The article also addresses the challenges faced by Ukrainian enterprises as they adapt to the digital economy. Despite a high level of educational attainment among the workforce and a growing digital sector, many Ukrainian companies still face barriers to effective digital transformation. These include outdated management practices, limited access to advanced technologies, and a lack of digital skills among HR professionals. The paper provides practical recommendations for overcoming these challenges, including the integration of digital tools, the promotion of agile work environments, and the alignment of HR strategies with broader business goals. The findings underscore the strategic importance of human capital as a critical asset in the digital age and emphasize the need for continuous innovation in HR practices to ensure sustainable growth.
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