DIGITAL TRANSFORMATION AND EMERGING HR COMPETENCIES: AN EMPIRICAL STUDY OF SLOVENIAN ORGANIZATIONS

Abstract

The accelerating pace of digitalization is fundamentally redefining the role, competencies, and strategic importance of human resource management (HRM). This study investigates how digital technologies—such as artificial intelligence (AI), analytics, and automation—transform human resource (HR) functions and generate new competency requirements, including digital agility, data fluency, and strategic capability. Building on theories of digital HRM, competency-based management, and sustainable HRM, the study develops an integrated conceptual framework linking digital transformation, HR competencies, and organizational sustainability. Empirical data were collected through a survey of more than 100 Slovenian organizations across different sizes and industries, yielding 82 valid responses for analysis. The findings indicate a relatively high level of HR formalization, alongside persistent difficulties in recruiting qualified HR professionals. Key competency gaps were identified in employee development, HR analytics, and strategic HRM. The results further show that larger organizations are significantly more likely to have established HR functions, while organizations with more mature HR structures recruit HR specialists more frequently and attribute greater importance to developing a national HR management system. Moreover, organizations that recruit HR professionals more intensively report greater difficulty in identifying suitable candidates, pointing to a growing skills mismatch in the HR labor market. Overall, the findings demonstrate that successful digital transformation in HRM depends not only on technology adoption but also on the integration of digital, analytical, and ethical competencies. The study contributes to HRM theory and practice by offering a combined conceptual and empirical model linking digital agility, HR analytics, and sustainable HRM outcomes, providing practical insights for organizations and policymakers seeking to strengthen HR capability development in the digital era.