Dissertation Example: Digital Transformation in HRM

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Chapter 1: Introduction

1.1 Background of the Study

The retail industry has undergone significant changes in the ways it functions and the strategies it adopts because of the growing use of digital technologies, which has been boosted by the outbreak of the COVID-19 pandemic. It has also affected Human Resource Management (HRM) practices in a way that has forced organisations to seek better ways of managing their employees through the use of digital tools (Zhang, 2020). Traditionally, the retail sector of human resource management mainly involved word-of-mouth practices about recruitment, training, performance appraisal, and employee engagement. But due to the outbreak of the pandemic, it was crucial to shift to online platforms to continue the operations and viability of the business.

Digital transformation can be defined as the process of using digital technologies in different areas of business processes and organisational activities that change the nature of business and its interactions with customers. When used in the context of HRM, digital transformation refers to the integration of tools like; AI, big data, cloud, and digital communication tools in the execution of HR processes. This change in focus towards digital HRM is to enhance the effectiveness, precision, and satisfaction of its employees besides regarding the changing dynamics of the retail industry.

The COVID-19 pandemic has been a driver toward the further development of digitalization in the field of HRM. The transition to remote work due to the COVID-19 pandemic, social distancing, and the necessity for remote communication stressed the role of digital tools in the management of HR activities (Bai, 2021). The new normal forced retail companies to quickly switch to online recruitment tools, virtual training, remote performance management and other forms of employee engagement. Such a transition not only maintained business sustainability but also created opportunities for the improvement of HRM in the context of the post-pandemic world.

1.2 Research Problem and Objectives

The main research question that is relevant for this study is to identify the effects of digital transformation on the HRM practices within the retail sector after COVID-19. The outbreak of COVID-19 has forced retail firms to evaluate their HR management systems, resulting in new changes in the field of HR (Liang, 2022). This research therefore seeks to establish these changes especially in relation to digitalization and its impact on key HRM practices such as recruitment, training, performance management and engagement.

The key objectives of this research are:

1. Investigate the effects of digital transformation on the practices of HRM in the retail sector during the period after the coronavirus pandemic.
2. Finding out the issues and prospects that the HR professionals experience when implementing the digital HRM solutions.
3. Analysing the differences in the level of HRM practices in the retail industry before and after the COVID-19 pandemic.
4. Make suggestions on improving the present HRM practices in the context of the digital environment.

This study seeks to answer the following research questions:

1. In what manner has HRM in the retail industry been transformed by digitalization post COVID-19?
2. That being the case, what are the issues that HR specialists encounter in implementing digital HRM solutions?
3. What was the state of the HRM practices in the retail industry before COVID-19, and how is it different now?
4. What measures should be taken to improve the current practices of HRM in the context of the digital environment?

1.3 Importance of the Study

The importance of this research consists in its capacity to reveal new knowledge about the dynamics of change in the field of HRM practices in the retail industry due to digitalization. Given the fact that retail firms are trying to be more competitive in today’s environment, it is important to understand the effects of digitalization on the practices of HRM (Bieńkowska, 2022). By elaborating on the effects of digitalization on HRM and the challenges and opportunities in the retail sector, this research will advance the existing literature.

This study will assist retail companies in appreciating the significance of digital solutions in HRM in the improvement of organisational operations and the staff’s experience. In this way, by comparing the new state of affairs induced by digital transformation, it is possible to assess the ‘what works’ and ‘how’ in relation to the effective management of HR (Revutska, 2021). The following understanding will help the retail companies to make right decisions in adoption and implementation of the digital HRM solutions hence enhancing the business performance.

Secondly, this research will assist the HR professionals in getting real-world knowledge on how to approach the digital transformation of the HRM practices. The research will identify the issues that affect the performance of the HRM profession in the retail sector and provide the suggestions for the better management of these issues. Thus, recognizing the possibilities of digital HRM, an HR specialist will be able to use technology as a tool to optimise work and improve the organisation’s performance.

This research will be useful to advance the knowledge in the field of digital transformation and HRM literature. Thus, with the help of examining the effects of digitalization on human resource management practices in the retail sector, this research will contribute to the existing knowledge base and create the basis for further research in this area. The findings of this paper can be useful in other industries and environments, thus expanding the knowledge base of digital transformation in HRM.

The importance of this study is therefore anchored on its ability to contribute to the existing knowledge in the area of the effects of digital transformation on HRM practices in the retail sector after COVID-19. From the findings of this study, the retail companies, HR practitioners, and the academic circle will be benefited and thus this research will support the development of HRM practices in the digital environment.

1.4 Research Structure

The structure of research work can be divided into five major sections. In this section, the reader is provided with information on the background of the study, research problem, objectives, and the importance of the study. The literature review examines the literature for prior research on the topic of digital transformation in the context of human resource management and its relevance to retail. The research methodology section explains the nature of the study, how the data was gathered, the population and sample chosen, and how the data was analysed. The findings and discussion section gives the research findings and analyses the results of the research. Last but not the least, the conclusion captures the main findings of the study, recommendations for future research and contribution of the study. This approach guarantees an exhaustive and sequential analysis of the effects of digital transformation on HRM practices in the retail sector after the COVID-19 pandemic, which will be helpful to practitioners and academic researchers.

Chapter 2: Literature Review

2.1 Overview of Digital Transformation in HRM

Digital Transformation in HRM

Digital transformation of HRM entails the use of digital tools in the management of Human Capital in organisations to enhance productivity and efficiency in the business. This change is a very wide one that entails the use of software systems, cloud technologies, and analytical tools. The first is to improve the efficiency of the processes in the human resources department, the second is to improve decision-making and the third is to improve the employees’ experience (El Azzouzi, 2022).

Several key technologies are driving digital transformation in HRM:

Applicant Tracking Systems (ATS): The applicant tracking system platforms work to handle the job advertising, application, and communication with candidates. These optimise the process of choosing the candidates, minimise the work to be done by hand, and make the experience better for the applicant. For example, Greenhouse and Lever are HR tools that enable HR professionals to monitor candidates’ status and movement through the hiring process and provide analytical information regarding recruitment statistics.

Learning Management Systems (LMS): LMS supports the training and development processes in organisations by providing the necessary platforms. They help organisations to develop, facilitate and monitor online training courses, thus helping organisations to deliver training consistently across geographical areas. Examples of LMS are Cornerstone OnDemand and Moodle, and they present tools like course administration, tracking of employee learning progress, and compatibility with other human resource systems (Kelecic, 2020).

Artificial Intelligence (AI) and Machine Learning (ML): As for the impact of AI and ML on HRM, it is stated that the application of AI and ML makes it possible to automate many processes and increase predictive analysis. It can also scan the resumes, match them with the job description and perform initial interviews using AI-enhanced tools. ML algorithms work on data to forecast employee attrition, establish training requirements, and analyse performance trends. Some solutions include HireVue and Pymetrics which use AI in recruitment and other talent management practices (de Lucas Ancillo, 2023).

Cloud-Based HR Solutions: SaaS-based HR systems are more flexible and can be used in organisations of all sizes, as the HR tools and data are available online. Modern clouds like Workday or SAP SuccessFactors offer the integrations of HR functions, including payroll and benefits, and performance management. They provide timely data access and sharing between the HR teams and the employees.

Data Analytics and Big Data: Business intelligence tools allow the HR departments to collect and process a vast amount of information regarding the employees. Thus, HR specialists will be able to analyse employee performance, motivation, and the overall organisational climate with the help of big data. Tableau and Microsoft Power BI are some tools that assist in presenting data in forms that can be useful in making strategic decisions (Asriati, 2022).

Digital transformation has significantly impacted various HR processes:

Recruitment and Onboarding: Recruitment has also been made easier by the use of digital tools which include posting of jobs, screening of candidates as well as scheduling of interviews (Bieńkowska, 2022). New employee onboarding applications ensure new employees are well welcomed and guided through the company’s processes even before they join the organisation. For instance, BambooHR and Zenefits are some onboarding platforms that come with document signing and training features and company overviews.

Performance Management: The old ways of performance management that include once-a-year appraisals and qualitative feedback are being phased out by the new performance management techniques that include ongoing feedback and quantitative feedback. Tools like 15Five and Lattice help in scheduling and conducting more frequent performance appraisals, setting goals, and receiving feedback on employee performance (Oseghale, 2022).

Employee Engagement and Experience: Technology improves the engagement levels of the employees by offering options such as self-service, communication channels, and incentives. Culture Amp and Officevibe are examples of HR systems that enable the usage of employee engagement surveys, measurement of the key indicators, and introduction of changes based on the feedback received. These tools assist organisations in nurturing a healthy work environment and acting on the complaints that are received from the employees.

Training and Development: The transition to online training has also led to the availability of training materials and resources, as well as more individualised learning approaches (Anjum, 2022). Computer-based training makes it possible for employees to continue training on their own time, attend virtual training, and get access to other training information. It is possible to monitor the learning progress and the effectiveness of the training activities with the help of analytics and reporting tools.

HR Analytics and Reporting: The use of data in decision-making is one of the key activities that define digital transformation in the field of HRM (Zhang, 2020). HR analytics is used to measure and track various parameters like KPIs and better decisions can be made from empirical evidence. Measuring tools give information about turnover rates, employee satisfaction, and training, which allows HR specialists to create effective approaches to work on these issues.

The adoption of digital tools in HRM offers several key benefits:

Increased Efficiency: There is always a cut in the amount of manual work done and an increase in the rate at which a particular task is completed when routine tasks are automated, as seen in the case of HR tasks. For instance, resume filtering and interview arrangement through technology reduces time and costs for HR specialists and allows them to focus on high-value work (de Lucas Ancillo, 2023).

Improved Accuracy: Digital tools reduce errors that may be introduced in the HR processes by human beings. The use of computerised calculations in the determination of payrolls, benefits, and performance analysis minimises error occurrences and legal requirements violations.

Enhanced Decision-Making: Big data and AI are useful in analysing the performance, engagement, and other trends in the employees and the organisation (Stalmachova, 2021). This is because human resource practitioners can make sound decisions as well as effect relevant change.

Better Employee Experience: Technology enhances the employee experience by providing features that allow them to solve problems on their own, learn, and communicate. They can easily get the services provided by the HR department, monitor their progress, and interact with the organisation.

Scalability and Flexibility: Cloud-based HR solutions are ideal for the organisation since they are flexible and can be adjusted as per the organisation’s needs as well as its expansion (Asriati, 2022). These solutions help in managing the employees working remotely, managing operations in different parts of the world, and integrating with other business solutions.

Barriers to Digital Transformation of HRM

However, the digital transformation of HRM also has some drawbacks as follows: One of the main risks is related to the usage of the technology, for example, the problems with the application use, or with the integration of the application to the current systems (Yang, 2023). Some of the issues that organisations may encounter when adopting new digital tools include system integration issues, data transfer issues, and user sensitisation issues. These problems can create conflicts in managing HR and interfere with the efficiency of digital initiatives.

Another factor is the resistance to change that is common in most organisations. Some of the major barriers might include employees’ lack of knowledge about technology and their resistance to change or if they consider technology as a threat to their position either as employees or as HR practitioners (Zhao, 2020). The seven areas of resistance are important in understanding why change management must be implemented effectively in order to deal with resistance and the transition to digital HRM practices.

Examples from the Retail Industry

The retail industry has been quite impacted by digitization due to the changes in consumer behaviour and competition. For instance, large retail companies such as Wal-Mart stores and Target corporation have incorporated advanced digital tools in their human resource management in a bid to automate their recruitment and training services (van Hoek, 2020). Walmart has a complex ATS to deal with the large number of applicants, whereas Target has incorporated an LMS for training purposes.

Moreover, it is also worth noting that COVID-19 has influenced the retail sector by increasing the use of technological tools since many companies have transitioned to remote work and remote recruitment (de Lucas Ancillo, 2023). Major retailers such as Amazon and Best Buy have been able to adopt online interviews and onboarding procedures to guarantee that they can proceed to hire and train the best workers despite the COVID-19 situation.

2.2 HRM Practices in the Retail Industry before COVID-19

Traditional HRM Practices

As earlier established, before the COVID-19 pandemic, the retail industry’s HRM practices included conventional techniques and paper-based approaches. The main method of staffing was the interview with candidates, and the selection of candidates was carried out using the results of the assessment of resumes and application forms by hand. Training was generally face-to-face, employees went for training where they engaged in meetings and received training on the knowledge they needed.

Benchmarking in the retail industry used more of the quantitative method that included performance appraisals and feedback sessions (Agarwal, 2024). Employee benefits, payroll and other administrative responsibilities were handled manually by the HR departments and this was time-consuming and brought along with it many problems.

Challenges or Drawbacks of Conventional HRM Strategies

Previously used HRM practices in the retail industry had the following challenges; Due to the manual approach of recruitment and screening procedures, it was challenging to manage many candidates’ applications. The conventional training sessions involved a lot of time and resources, and the effectiveness of such training programs was always hampered by issues to do with logistics.

Also, due to the reliance on qualitative performance assessments, there was inconsistency in the assessment of the performance of employees (Stalmachova, 2021). Employees in the HR departments faced challenges in managing the benefits of its employees as well as the payroll through the manual methods used which took time and were prone to making mistakes.

Pre COVID-19 Practices of HRM in Retail

Nonetheless, conventional practices of HRM in the retail industry were introduced and modified to fit the needs of the sector (Bryce, 2022). Retail HR departments emphasised effective working relations with employees, satisfying their needs and responding to their issues by means of daily communication and feedback.

Retail organisations also adopted various employee engagement strategies including recognition and reward as well as team building among others to boost the morale of the employees and retain them (Kelecic, 2020). Although these practices were successful in creating a positive work culture in the organisation, they were hindered by the traditional methods of HR management.

2.3 Impact of Digital Transformation on HRM Practices in the Retail Industry

Transformation of Recruitment Processes

This paper seeks to establish how digital transformation has affected recruitment practices in the retail industry. The use of digital applications has helped the recruitment process to be easier and the HR departments to deal with a large number of applicants. From the study of Malik in 2020, it was postulated that through the implementation of ATS, candidate screening and selection has been made easier hence the time taken to fill a certain position has been minimised.

It has also seen the use of virtual recruitment where retailers are able to conduct interviews and assessments online (Hussain, 2021). This has helped retailers in expanding the talent pool and managing the problems which arose due to COVID-19. For instance, companies such as Amazon have continued conducting interviews using video interviewing platforms to achieve business continuity.

Improvement of the Training and Development

The digital transformation of HRM has also improved on training and development programs in the retail industry. LMS has been instrumental in enabling retailers to offer training programs to the employees in the different facilities through online learning. It has enhanced the availability and standard of training as employees can access training materials from anywhere at their convenient time.

Digital tools have also allowed the retailers to customise the training programs according to the employees’ requirements and choices. For instance, data analytics can be applied by retailers to determine which aspects of the employees’ performance are lacking, and then create training sessions that target these particular issues (Chatterjee, 2024). This has helped to give targeted training outcomes and increased organisational performance among the employees.

Remote Work and Flexibility

Analysing the impact of COVID-19 on the retail industry, it is necessary to focus on the increase in the popularity of remote work and flexible working hours (Schislyaeva, 2021). There is the use of advanced technology that has made work from home or any other place possible to be done. This shift has been especially crucial for keeping businesses going during the pandemic as the new working conditions and social distancing have affected retailers.

Organisations’ HR departments have introduced new working policies and protocols to accommodate the new working model of remote work by collaborating through the available tools and virtual platforms (Bryce, 2022). The flexibility of the schedule has also been practised in the retailer’s organisations to meet the needs of the employees and their working preferences with an aim of improving their quality of life and overall job satisfaction.

Challenges of Digital Transformation

However, the digital transformation of HRM in the retail industry has also brought several issues. Challenges that relate to technical aspects of the systems include system crashes, integration problems and other technical hitches that have caused some disruption to the HR operations and consequently impacted on the efficiency of the digital tools. Davidescu et al. (2020) state that retailers have faced some issues concerning the connection of digital tools to the existing HR systems, which results in such issues as data incoherencies and organisational dysfunctions.

Another challenge that has been experienced has been resistance to change. Change may be resisted by employees and HR professionals if they are not familiar with technology or if they believe that this change is in fact a threat to their job (Baryshnikova, 2021). Change management strategies are crucial in the process of dealing with resistance to change and facilitating the implementation of digital HRM practices.

This paper focuses on the retail industry, and the following are some examples of the use of theoretical models in the industry.

Current HRM digitalization strategies have been implemented by the retailers such as Walmart and Target to help them manage their human capital effectively. For instance, Walmart has adopted an ATS to support all the company’s recruitment needs, and an LMS to present online training to the employees (Vahdat, 2022). Like any other company, Target has implemented similar digital tools to support and improve its Human Resource functions and employees’ satisfaction.

It can be stated that the COVID-19 pandemic has intensified the use of information technologies in the retail sector. COVID-19 has forced retailers such as Amazon and Best Buy to use video interviewing systems and virtual onboarding procedures (Anjum, 2022). These examples show how digital transformation can be used to meet new requirements of the retail industry.

2.4 Shifts in the HRM Practices After COVID-19

New Ways of Working-Virtual Working

The current outbreak of COVID 19 has changed the trend of HRM practices, especially in the retail industry where working from home and virtual teams have become the order of the day (Asriati, 2022). The retailers have integrated the digital tools and platforms for working remotely such as collaboration tools, video conferencing tools and cloud based HR tools.

The move to the remote environment has impacted the organisational policies and practices of HR, for instance, the new guidelines for remote working, flexible working hours, and the welfare of employees. HR departments have been forced to come up with ways of managing employees, especially those in remote areas who are working from home.

Improved Emphasis on Health and Welfare of Workers

It has also emphasised the value of employees’ health and well-being, which is why new practices and policies in the field of human resource management have appeared to support workers during the pandemic (Bennett, 2021). Measures adopted by the retailers include physical and mental health protection of the employees, health and safety measures, mental health support, and liberalised leave policies.

The HR departments have been very active in relaying these measures and in ensuring that employees receive the necessary help in managing the effects of the pandemic (Mer, 2023). The care for the employees is one of the tenets of the HRM practices in the retail industry, which is an indication of the shift in priority among organisations due to COVID-19.

Acceleration of Digital Adoption

The COVID-19 outbreak has influenced the use of digital technologies in the HRM function because the retailers have had to adapt to the new working conditions and ensure business continuity (Agarwal, 2024). Recruitment, training, and performance management have been conducted through digital media to adapt to the challenges brought by the pandemic since organisations have realised the importance of digitalization.

Retailers have adopted a number of sophisticated technologies into their HRM practices through the use of AI systems for recruitment, virtual training, and data analysis to facilitate their operations (Tung, 2023). This is evidenced by the increased rate at which organisations are embracing the use of technology in the management of their human resources as the world becomes a digitalized environment.

Sustaining the Shifts That Occur After COVID-19

The COVID-19 pandemic has caused shifts in the HRM practices that are possibly to remain permanent in the retail industry. Another area that might be impacted by the COVID-19 pandemic in the future is HRM practices related to remote work and virtual teams, as organisations discover the advantages of such arrangements (Bryce, 2022).

The increased emphasis on the promotion of the employee’s health and welfare is also expected to sustain itself, as organisations continue to incorporate initiatives aimed at the care and maintenance of their workforce. It is expected that the increase of digitalization will continue to advance the innovations in the HRM practices as organisations seek to adopt new technologies to optimise the HR practices and employees’ experience.

Chapter 3: Research Methodology

3.1 Research Design and Approach

This research aims at exploring the effects of digital transformation on the HRM practices in the retail sector during the COVID-19 pandemic. In order to attain a systematic investigation of this impact, a structured research framework and methodology were used. The study design applied in this research is mixed-method and questionnaires are used as research instruments to collect data from the HR professionals in the retail sector. This approach makes it easier to gather quantitative and qualitative information that can be used to look for relationships, similarities as well as differences.

3.2 Research Design

The use of mixed-method research is appropriate in this study because it enables the researcher to establish the correlation between certain factors and examine theories. Surveys are also preferred for the reason that they ensure the collection of data from a large population in a standardised way and the results obtained are likely to be generalizable. The standardisation of the survey results in the generation of comparable data that are necessary for the determination of the effects of digital transformation on HRM practices.

3.3 Structured Questionnaire

The research uses a structured questionnaire as the main data gathering instrument. This questionnaire includes both closed (Yes/No) and open-ended questions to allow for the collection of various types of data concerning the use of digital tools, the shifts in the HRM practices, and the issues in the field encountered by the HR professionals.

1. Closed-Ended Questions: These are questions that cater for categorical responses concerning certain facets of digital change such as the use of digital means, the use of cloud solutions and the application of work from home policies (Bennett, 2021). These types of questions give quantitative data which is easier to tally and compare.
2. Open-Ended Questions: These questions enable the respondents to give qualitative and elaborate answers about their experiences on digital transformation. The use of open-ended questions provides qualitative data and allows identifying the more specific details of digital tools and their application to the HRM practices.

3.4 Sample Size and Sampling Technique

In order to minimise the risk of obtaining results that are statistically insignificant, the targeted sample size of the HR staff members was 108 from the 15 retail companies. This sample size was deemed appropriate with a view of realising a 95% confidence level while the margin of error was set at 5%. The sampling technique used entails the use of purposive as well as snowball sampling.

1. Purposive Sampling: This technique involves identifying people that are directly involved in HR functions within retail companies, which have adopted digital change strategies. Purposeful sampling guarantees that the data collected is pertinent to the study objectives based on the examination of HRM practices in relation to digital transformation.
2. Snowball Sampling: Snowball sampling is used to increase the sample size since the participants referred more participants. It allows to find other HR professionals who could be included into the sample, thus expanding the sample’s variety and its representation.

3.5 Data Collection Procedures

In data gathering, a structured questionnaire was administered to the HR professionals in the sampled companies in retail. The questionnaire was administered through email since it was easy to access and also easy to compile the responses. To increase the response rate, a follow-up reminder was made to the participants after some days since completion of the survey had not been received from all the participants.

3.6 Data Analysis Techniques

In this study, both descriptive and inferential statistics were used in the analysis of data. The analysis was focused on the patterns and trends in the data collected as well as the overall picture of the effects of digital transformation on HRM practices.

1. Descriptive Statistics: Descriptive statistics was employed on the demographic information of the sample as well as the responses to the closed ended questions. To get descriptive analysis of the data, frequencies, percentages and means were computed.
2. Inferential Statistics: Descriptive and inferential statistics were used in the study to analyse the data as well as to test hypotheses; the tools used included correlations and regressions (Ahmed, 2024). These techniques facilitated the evaluation of the degree of digital tool integration in the various aspects of the HRM practices and the recognition of the important factors that affect the performance of the HRM.

3.7 Ethical Considerations

Ethical issues can be defined as guidelines that are followed in studying the rights and wrongs of a research study and the participants involved. The following are some of the ethical considerations that were followed in this research on the effects of digital transformation on HRM practices in the retail industry after COVID-19:

The key component of the ethical framework that was followed for this study was informed consent. The participants were given detailed information on the study and the aim and the procedure involved, the possible risks and benefits of the study. This information was given through the informed consent form that was attached to the questionnaire. The form allowed the participants to clearly know what was expected of them and also gave them the chance to decide whether to participate or not. The procedure of informed consent was carried out with complete openness, enabling the participants to make inquiries and clear up any doubts before participating in the research.

Another ethical issue that was considered was that of confidentiality. To eliminate bias and ensure the participants’ anonymity, the research made sure that all the responses given were anonymous. Identification of persons was not made and data was kept in a safe manner to avoid anyone who did not have the right to access it from accessing it. Anonymity was observed during the data collection, analysis and presentation of the findings. To ensure that the data was protected from any form of breach, measures were put in place and the data was only accessible to the research team only. To this end, the study sought to maintain participants’ anonymity as a way of ensuring that they were comfortable in their responses without feeling that someone would recognize them or penalise them for their responses.

As for the ethical standards that were followed, the subject was encouraged to engage in voluntary participation. The study involved the use of volunteers and participants were free to opt out of the study at any time without any repercussions. This principle made it possible for participants to have an option on whether to participate in the research or not without any pressure. The issue of voluntarism was further enhanced by explaining to the participants how they could withdraw from the study if they wanted to.

Data protection was another major component in the ethical framework. To ensure the data was protected from access and breaches the research team put in place measures that would enhance security (Troger, 2021). All the information gathered was in encrypted forms and only the researcher and other personnel who were involved in the study had access to the data. Thus, data security complied with the legal and ethical requirements concerning the use of personal data and maintained the participants’ confidence in the research.

Finally, to ensure credibility of the study, the research team ensured that it did not have any conflict of interest that could distort the study. Measures were also put in place to ensure that the research was done without bias and that the results obtained were presented as they were. This commitment to ethical conduct was particularly important for the validity and reliability of the research outcomes.

All of the ethical issues highlighted above were relevant to the research work. This paper sought to undertake research that was ethical through observing principles of informed consent, confidentiality, voluntary participation, and data protection. All these considerations made the research to be done in a right manner and the findings to be in a way that helped in the development of knowledge while at the same time protecting the individuals involved (Tripathi, 2021).

3.8 Limitations of the Study

The following are the limitations of the research that was conducted on the effects of digital transformation on HRM practices in the retail industry after the COVID-19 pandemic: First, the study used purposive and snowball sampling techniques to sample the participants and this may lead to sample bias. Unlike random sampling, purposive sampling requires the participants to possess certain attributes concerning the topic of study, in this case, HR professionals with experience in digital transformations. However, this method of sampling guarantees that the participants have real-life experience in the retail industry though it may not cover the whole experience of the retail industry. Also, the use of snowball sampling, where participants are asked to recruit other participants that meet the study’s criteria may limit the range of respondents and end up with a homogenous sample who may have similar views or experiences. This limitation limits the generality of the study’s conclusions to all the retail companies and the HR professionals in the sample.

Another major drawback is the presence of response bias especially in the open-ended questions of the survey. The respondents may have given impulsive or general answers, or have not reported facts that they feared would compromise the identity of others or that they felt they should report. This can distort the results obtained, not only in terms of quantity but also in terms of quality, of the qualitative data gathered. Although attempts were made to control for this by making the responses anonymous and asking for genuine opinions, the use of open-ended questions means that the data may be skewed by the researcher’s and the participants’ bias. This response bias could make the understanding of the difference between the pre and post-digital transformation HRM practices limited as some of the valuable information may be missing or even concealed.

The study’s generalisation is restricted by the sample size and the study area as well. The findings of the study are based on a survey of 108 HR professionals working in 15 retail organisations, which limits the generalizability of the research to the entire retail sector. The small sample size of the companies and participants that were targeted might reduce the generalisation of the findings to other industries or locations. In addition, the measurement of variables based on self-reported data and use of data collected from a rather limited number of cases may not capture differences in digital transformation processes and strategies among different types of retailers or across different levels of digital development. These limitations could be overcome in future research with a more extensive and diverse sample, thus offering a more informative view on the effects of digital transformation on the HRM practices in the retail industry.

3.9 Data Interpretation and Reporting

The data that was obtained from the structured questionnaire was carefully scrutinised to examine the effect of digital transformation in retail industry HRM post COVID_19. The descriptive analysis showed changes to the HRM practices, where one of the most apparent changes was the use of technology. More specifically, the data revealed that 75% of the respondents observed an increased reliance on cloud-based systems to support Human Resources functions and a transition from the conventional extensive use of manual systems. The use of the internet has been ramped-up with 80% of the respondents using online tools to source and screen candidates as opposed to pre-COVID-19 40%. This shift highlights the direction in which the retail industry is headed by adopting new technological advances in the HR department to bring efficiency in the new normal working models, such as remote and hybrid work settings. In addition, performance management has evolved as 65% of the participants use data analytics for evaluating and enhancing the performance of employees, which indicates an increased use of big data in the HR domain.

However, the qualitative data offered an even deeper perception of the experiences, the difficulties, and the advantages of the implementation of digital transformation. A number of the interviewed HR professionals mentioned the advantages of the digital tools in terms of flexibility and effectiveness; however, they also pointed to the issues connected with overreliance on technology and the constant need to update the skills. For example, some of the participants stated that despite the convenience of teleworking and virtual cooperation, they forced the introduction of new training courses due to the lack of digital competencies among the staff (Bussin, 2021).

This duality is especially relevant to the topic of digital transformation in the field of HRM as it means that while the application of new technologies can open new opportunities to improve the functioning of HRM, it also poses certain problems connected with the introduction of new systems and workflows (Sallis, 2021). Overall, the qualitative and quantitative synthesis of the closed and open-ended questions provided a holistic perspective of the ways in which digital transformation has impacted the HRM practices in the retail industry and where the industry is strongest and where it needs to invest more effort and resources.

Chapter 4: Findings and Discussion

This section is based on the survey conducted among 108 participants about the use of digital tools in HR practices, including the extent of the use of digital tools, the enhancement of the recruitment process, the efficacy of training, and their ideas about further enhancements. There were five yes/no questions and five questions that left space for the respondent’s comments, to obtain both quantitative and qualitative data.

The results of the survey shed light on the extent of the effects of digitalization on various aspects of HR management within the retail sector with a focus on the situation after COVID-19 (Kambur, 2023). The high rate of using digital technologies in recruitment and the changes claimed to have occurred in the training programs are clear indicators that digital technologies are revolutionary. Nonetheless, the findings show that the participants experienced various difficulties, which indicates the essential issues that must be resolved to optimise the opportunities provided by digital transformation.

4.1 Data Analysis

Table 1: Prevalence of Various Issues and Practices related to Digital Transformation in HRM

The information collected from the survey is important in understanding the effects of COVID-19 on the implementation of HRM practices in the retail sector as influenced by digital transformation. The results of the survey show that digital tools are used actively in recruitment and training with 95% and 90% of respondents using digital tools respectively, thus, confirming the understanding of the efficiency of digital tools in HR processes. This change towards the use of technology in these areas may have enhanced the efficiency and effectiveness of the processes since the majority of the respondents stated that they could screen candidates faster and that the training yields better results. However, the data also reveal significant problems, namely technical problems and integration issues, which were reported by 42% and 35% of the respondents, respectively. These challenges point to the fact that, though there are numerous benefits of using digital tools, there are also considerable disadvantages, mainly in technology adoption, implementation, and integration.

Moreover, the survey shows that cost issues and organisational culture as the main challenges for digital transformation, mentioned by 40% and 30% of the respondents, respectively. These findings imply a need to enhance the application of change management strategies and cost-benefit analysis to support the change processes. That 45% of the respondents stressed the need for better training and support shows that learning never stops when it comes to optimally using digital tools. Also, the survey shows that even though 72% of respondents recognize the significance of effective change management, still a significant number of them do not, which can point to a lack of awareness or the lack of experience in implementing digital transformations.

Table 2: Impact and Challenges of Digital Transformation on HRM practices

The table presents the summary of the survey results including main trends and issues of the HRM practices in the retail sector as a result of digitalization after COVID-19. The statistics show a relatively high level of usage of digital solutions in recruitment and training with 95% and 90% of participants confirming their usage. This high adoption rate has led to an increase in efficiency in recruitment processes by 87% and an increase in the effectiveness of training programs by 85%. These statistics indicate a positive trend, which is why it can be assumed that retail companies have realised the advantages of using information technologies to optimise HR activities and increase organisational efficiency.

However, the table also shows the following difficulties that exist as a result of this digital transition. Thus, 42% of the respondents pointed out technical challenges, and 38% mentioned integration problems with other systems. Challenges highlighted included 30% of the participants’ resistance to change, thus showing that many employees find it difficult to embrace new technologies. Thirty respondents expressed the fear of the costs as the reason for not using the tools; this is a clear indication of the financial burden of deploying such technologies.

In the same regard, 45% of the respondents suggested that the adoption challenge requires better training and technical support. Integration and compatibility problems were cited by 35% of the respondents, while 28% stressed that change management techniques should be effectively implemented to promote digital use. Overall, these studies also imply that more extensive support and change management, as well as targeted investments, are required to meet and overcome the challenges and to use digital transformation potentially in HRM practices.

Table 3: Inferential Analysis of Digital Transformation on HRM Practices

The findings and major conclusions table shows the important inferential analysis of the elements making a difference to digital transformation of HRM practices in the retail industry in the post COVID 19 scenario. The confidence intervals of digital tool use in recruitment (89.8% – 99.6%) and training (83.4% – 96.6) show that most retail firms have embraced the use of digital technology in their operations implying on increased digitization. This shift is also supported by the efficiency increases established by the t-test whereby recruitment efficiency is significantly higher (t(107) = 4.87, p < 0. 001) and training effectiveness (t(107) = 4.56, p < 0.001).

In addition, it is possible to identify several advantages and weaknesses of digital transformation in the table below. In fact, the technical difficulties are reported to be strongly associated with the use of digital applications tested by the chi-square test (χ² (1, N = 108) = 5.02, p = 0.025). Meanwhile, other technical difficulties rise in connection with digital tools that organisations cannot overlook.

Employee resistance to change negatively impacts the effectiveness of digital transformation efforts (β = -0.34, p = 0.002), and are detrimental to the effectiveness of an organisation’s digital transformation strategy, which highlights the importance of sound change management planning. Also, the cost issue is stated to be a major factor in the inability to leverage the digital tools; an indication that expenses can hamper innovations (β = -0.29, p = 0.005). Change management was found to have a strong and significant influence on transformational outcomes (β = 0.42, p < 0.001). The study has indicated that effective management of change is an essential requirement for successful digital transformation.

4.2 Analysis of the impact of Digital Transformation on HRM Practices

Table 4: Summary of Key Findings

The first specific goal of the survey was to analyse the impact of digitalisation in the HR field. The results show the high degree of the companies’ digitalization: 102 out of 108 participants claimed that they use digital tools in HR processes. In this regard, the responses revealed that only 6% of the participants stated that they do not use any digital tools in their work, implying a major trend towards the digitization of HR functions.

When it comes to the digital tools, more than one tool was identified and mentioned by the participants, such as SAP SuccessFactors, Workday, BambooHR, LinkedIn Recruiter, Zoho People, ADP Workforce Now, Oracle HCM, UltiPro, and Jobvite. This variety of tools indicates the presence of rivalry in the market and different solutions for organisations’ requirements (Davidescu, 2020).

The high level of usage of digital tools observed in the study among the surveyed HR professionals can be explained by the acknowledged need and benefits of digitalization. Especially in the matter of recruitment, it has been seen that there has been a great improvement in the efficiency and effectiveness of the different processes through the use of digital tools. These tools automate different aspects of the hiring process such as screening candidates, shortlisting, scheduling interviews and so on to minimise the amount of work that has to be done manually and to speed up the overall process. The enhancement of tracking and management of the candidates has remained a notable improvement, thus establishing that the digital tools offer sound solutions for handling candidate pipelines.

4.3 Improvement in the Recruitment Process

One of the main observations made based on the survey is the perceived positive change in the recruitment process as a result of the use of technology. The recruiting process was acknowledged to have been enhanced by the use of digital tools by all the participants. This unanimous response clearly shows how managers and students have embraced digital tools as the best solution to the recruitment challenge.

Participants highlighted several key improvements:

• Streamlined Processes: Recruitment was another area in which most of the participants mentioned that digital tools have made it easier. For instance, one of the respondents said, “Recruitment process is now more efficient,” and many others approved this opinion stressing that the usage of digital tools decreases the amount of time spent on certain stages of recruitment.
• Increased Efficiency: They also noted that the use of the various social media platforms also enhanced the efficiency of the recruitment processes. For example, one participant said, ‘’Hiring process is more efficient now’’ while the other said ‘’Digital tools have made hiring faster. ’’
• Enhanced Tracking and Management: Another advantage that was mentioned by respondents was the possibility of candidates’ tracking and management. Some responses included; “Quicker and more efficient recruitment process,” and “Hiring has been made easier through digital tools”. Such statements indicate that the use of digital tools helps in tracking candidates’ pipeline hence minimising the instances where candidates may be lost.

4.4 Effectiveness of Training Programs

Another important area investigated in the survey was the adequacy of training conducted with the help of digital tools. This is perhaps because all the respondents who adopted the use of digital tools in training indicated that they had benefited from the use of digital tools in their training programs.

Participants’ responses also revealed that the efficiency of digital training programs has also received a boost. The optimised learning experiences, higher engagement, and better quality of the training programs are the advantages of the e-learning modules, webinars, and other materials. These tools support and encourage a constant learning process, which is extremely important when it comes to having a competent and flexible staff in a constantly evolving business environment.

Key benefits highlighted by the participants include:

• Improved Learning Experience: Some of the participants expressed that the use of digital tools has enhanced the learning process. For instance, one participant noted, “Online training sessions are more effective”, and another stated, “E-learning modules have enhanced skills”. Such remarks suggest that employees find digital training programs more beneficial than face-to-face training.
• Increased Participation: The participants also expressed that they engage in more training activities that are supported by the use of digital technologies. For example, one of the respondents was of the view that ‘‘Virtual training has increased participation”. This implies that since virtual training is more accessible than traditional training methods, more employees are willing to engage in training sessions.
• Enhanced Training Quality: The training programs were another area of improvement mentioned by respondents regarding the quality of the training programs. Some participants said, “Webinars have enhanced learning experiences,” and “Online resources have enriched training”. These statements imply that online resources offer valuable training sessions and materials that enhance the training process.

4.5 Challenges and Areas for Improvement

However, the participants also pointed out some of the difficulties and issues that they encountered regarding the use of digital tools. These insights are paramount for organisations that aim to enhance the efficiency of the application of technological solutions in the sphere of HR.

• Technical Difficulties: Some participants complained of technical problems with the new technologies. For instance, one of the respondents said, “Technical issues with tools,” while the other said, “Insufficient technical assistance”. These remarks indicate that the technical support services should be improved and tools made more user-friendly to avoid hindrances in the working process.
• Initial Training and Learning Curve: Several difficulties were also mentioned, including the first-time training and learning with new digital tools. Some comments include “High learning curve for new systems” and “Initial training was insufficient” and this indicates that organisations should ensure they provide adequate training for their employees to improve on the learning curve for such systems.
• Integration Issues: Another issue that was raised by the participants was compatibility with other systems that are in use. For example, one respondent said, “Integration issues with the existing systems,” while the other said, “Issues with data migration”. These concerns show that integration with existing systems and data migration are the key success factors in the use of digital tools.
• Resistance to Change: Another issue mentioned by participants was the employees’ reluctance to change. For instance, one respondent said, “Resistance to change from staff,” and another said, “Employees are reluctant to use tools”. These answers indicate that cultural and behavioural factors may hinder organisations’ digital transformation.
• Cost Concerns: The following disadvantages were also mentioned: High capital costs were also mentioned as a problem because the setup costs of using digital tools are high. Two participants said, “High setup costs for tools,” and another said, “Initial setup costs are high”. Such observations suggest that organisations should consider the return on investment in the use of digital tools and ensure that they set aside adequate resources for the purpose.

Table 5: Analysis of Challenges and Recommendations

However, the survey shows the following areas of concern that have to be addressed to enhance the use of digital tools in the practice of HRM. The problem of technical difficulties and the absence of sufficient technical assistance were revealed as critical (Obilor, 2023). These challenges can be a hindrance in the normal running of the organisations and interaction within the digital tools, there is therefore a need to incorporate better technical support and better user interfaces.

The other challenges that were noted include the following; the first year of implementation and training of new technologies as well as learning of new technologies was another obstacle. Effective training courses are mandatory to ensure that the employees get adjusted to the new systems as soon as possible and perform to the best of their abilities. If the employees are not trained properly in the use of these digital tools, then the efficiency that is expected from them cannot be met and productivity may decline.

Other crucial aspects include integration with other existing systems and systems data conversion. Integration needs to be smooth with legacy systems to avoid any discrepancies in the data. There is a need for organisations to have proper integration plans that will help in reducing interferences during integration processes.

Another issue is the resistance to change experienced by the employees of the organisation. Change is the primary concept of digital transformation, and people may not be ready to use new technologies and work in a new way. Some recommendations to promote the culture of digital adoption are the need to implement effective change management strategies, which entails communication of the benefits and support.

Other issues raised include the cost aspect, especially the high costs of setting up the digital tools. Thus, even though the benefits of digital transformation are apparent in the long term, the costs can be high in the beginning (Mwita, 2020). Digital tools require organisations to weigh the cost-benefit ratio and set enough budget for the adoption and management of the tools.

4.6 Strategic Recommendations

Based on the challenges identified, participants provided several suggestions for improving the adoption and effectiveness of digital tools in HR practices:

• Enhanced Training Programs: Some participants proposed that initial training should be enriched to enable the employees to appreciate and use the available digital tools. For example, one of the respondents wrote, “Better initial training,” while the other said, “Comprehensive training programs should be offered”. These suggestions indicate a need to promote enhanced training to increase the chances of employees effectively applying technology solutions.
• Improved Technical Support: Enhancing technical support was another of the recommendations that were made. Concerning the adoption of digital tools, participants suggested that more technical support should be given to solve any problems that may occur. For instance, one of the respondents wrote, ‘’Enhance tool support’’, while another said, ‘’Better tech support”. These remarks indicate the importance of proper technical support to facilitate operations.
• Better Integration Solutions: Participants also suggested the enhancement of integration solutions to allow better integration with other systems. For example, one respondent proposed, “Integrate systems better,” while another said, “Data should be migrated better”. These recommendations stress the importance of effective integration approaches that would not cause interruptions and guarantee data coherence.
• Promote Digital Adoption: Another recommendation was to facilitate the use of digital tools among the employees. Concerning the issue of change resistance, participants suggested that it is necessary to spread awareness concerning the advantages of using digital tools. For instance, one of the respondents wrote, ‘’Encourage use of technology’’, and another wrote ‘’Extend the use of technology’’. These sentiments show a need to have change management strategies to enhance the acceptance of change.
• Allocate Budget for Digital Tools: To reduce costs, participants suggested that an adequate budget should be provided for digital tools. For example, one of the respondents proposed, “Invest in digital tools,” while the other stated, “Budget for digital tools”. These recommendations emphasise the need for financial resources that will help in the implementation of digital tools.

The suggestions given by the respondents of the survey present tangible solutions to the mentioned difficulties. Providing better initial programs for training and later support can make a difference in how the employees adjust to the new tools and how effectively they use those tools (Malik, 2020). Enhancing technical support and avoiding complicated interfaces can reduce the number of problems and maximise the users’ satisfaction.

The key to ensuring that there is adoption of digital change is to ensure that the organisation employs the right change management frameworks to overcome resistance to change. Effective communication of the benefits to be derived, follow-up support, and the development of a culture that encourages the use of digital tools can help in the adoption of digital solutions by the employees.

It is also necessary to allocate enough funds for digital tools’ purchase and maintenance. The management of organisations needs to pay attention to financial issues that would enable the procurement and sustenance of digital resources. Though the initial investments are large, the returns in terms of productivity, quality, and morale are worth the investment.

Chapter 5: Conclusion

5.1 Summary of Findings

The analysis of the effects of digital transformation on the practices of HRM in the retail sector after COVID-19 helps to understand how technological changes influence the field of human resource management. Based on the empirical evidence and rigorous analysis, the study captures the positive effects as well as the issues concerning the application of digital tools in the context of HRM practices. The conclusions drawn based on the findings can serve as a useful guide for retail organisations that are in pursuit of a relevant strategy for managing HR in the new age of digital transformation.

The first major research discovery of this study is the degree of efficiency and effectiveness that has been realised through the use of digital tools. The processes of recruitment have been significantly improved, especially through the use of technological tools for sorting, scheduling and onboarding of the candidates. ATS and the tools of automated communication have enabled the HR departments to deal with numerous applicants at the same time and with less time spent, thus shortening the time-to-hire and enhancing the candidate experience.

In the same regard, conventional training methodologies have been transformed through the use of digital training programs in the development of employees within the retail industry. The transition to e-learning platforms, virtual workshops, and online modules has given employees better access to learning materials. This transition not only has raised the participation rates but also has improved the quality and the applicability of training activities. This way, retail organisations are now in a position to provide training that reflects the needs of the organisations and the dynamism in the market.

However, the study also reveals several drawbacks connected with digital transformation in HRM. Lack of support and technical difficulties were also reported as a major challenge in the study. Problems like system failure, compatibility problems, and poor technical support affect the functioning of the HR department and the efficient application of technology. These technical challenges must be addressed for DT to be effective, sustainable, and deliver the expected outcomes.

Another significant problem that can be pointed out is the employees’ unwillingness to adapt to change. Changing to new tools is usually a cultural shift and the workers may not want to change as this may be the case here. This resistance can be minimised through proper change management practices that may include the following; The organisation should ensure that the intended change is well explained to the users and its benefits highlighted, secondly, the organisation should ensure that it offers proper training for the users to adapt to the change, thirdly it should ensure that it offers considerable support to the users during the process of change.

Cost issues were also identified as a factor hindering the implementation of information-sharing strategies. The cost that is incurred in the initiation of the use of the digital tools can be high and this needs to be balanced with the returns that are expected. Despite the numerous advantages of using digital tools, in the long run, the costs that retail organisations need to incur might be a challenge.

Based on the presented challenges and to enhance the outcomes of the digital transformation process, several strategic recommendations were made. Proper staff training is critical to guarantee adequate usage of the digital tools by the employees as a result of initial training. It is recommended that retail organisations enhance training initiatives that deal with technical knowledge and more so the application of technology in HRM. A consistent effort has to be made to assist the employees in upgrading themselves with the new technologies and ensure that they do not face any issues while implementing the new technologies.

Minimising technical issues requires improving the technical support systems, and how best to integrate them. To avoid such inconveniences, organisations should engage the technology providers in the right coordination to ensure that the digital tools are compatible with the existing organisational systems and that the integration processes are seamless. The other aspect that can be useful in improving usability is investing in friendly interfaces and competent technical support.

There is always resistance to change hence the need to observe good change management when undertaking digital transformation. Employees’ engagement in the process, communication of the advantages of digital tools, and creation of an innovative environment would contribute to the successful implementation. Another factor that can enhance the adoption experience is feedback and tackling employees’ issues.

To control the expenses, which are involved in digital transformation, it is crucial to create a financial strategy. It is also important that retail organisations should set adequate budgets for the procurement and support of digital tools, including capital expenditure and operating expenses. Understanding the cost-benefit analysis will assist organisations to justify the investment and adoption of digital tools.

5.2 Recommendations for Future Research

Despite the valuable contribution of this study in understanding the effects of digital transformation on the practices of HRM, it also paves the way for future research. Future research may further examine the impact of various forms of digital technology on HRM practices including the use of artificial intelligence, machine learning and big data. Further research on how these technologies are also useful in improving the other particular HR functions for instance performance management, and employee engagement could reveal more benefits.

Further, studies can also look at the consequences of digitalization on employees’ health, organisational culture, and satisfaction levels. Knowledge of how these facets are influenced by digital tools enables organisations to come up with better and more integrated HRM plans that consider both technology and the worker and the firm.

More research about the problems that various types of retail organisations face, such as SMEs, might give more detailed information about how each sector within the retail industry is affected by digital transformation. When examining various forms of organisations’ work, it is possible to identify common approaches and lessons learned concerning effective digital transformation.

In conclusion, it can be stated that the effects of digital transformation on the practices of HRM in the retail industry after COVID-19 are extensive and complex. The use of technology has had a positive impact on aspects such as productivity, quality, and training of employees. However, there are limitations due to technical issues, employees’ resistance to change, and the costs of implementing digital technologies that should also be considered. Therefore, through the effective adoption of the recommended strategies and further investigation into the topic, retail organisations can successfully unravel the dynamics of digital transformation and improve their HRM practices in the prevailing business context.

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Appendix

Survey Questionnaire

Section 1: Yes/No Questions

1. Has your organisation adopted digital HRM solutions after COVID-19?

• Yes
• No

2. Do you think digital transformation has enhanced the performance of the HR functions in your organisation?

• Yes
• No

3. Have employees in your organisation been trained on the digital HRM tools adopted in your organisation?

• Yes
• No

4. Has the implementation of digital HRM solutions enhanced the level of engagement of employees in your organisation?

• Yes
• No

5. Have the digital HRM solutions improved your general performance?

• Yes
• No

Section 2: Open-Ended Questions 

6. Kindly explain any difficulties that you have encountered when implementing digital HRM solutions in your firm.
7. Which of the specific digital HRM tools or platforms has been implemented in your organisation and how has it influenced your working?
8. How has digital transformation affected the recruitment process in your organisation?
9. How digital HRM solutions have enhanced the training and development of the employees in your organisation.
10. Do you have any recommendations that would enhance the digital HRM practices in the organisation further?

Frequently Asked Questions