HRM 4.0 Practices and their Effect on Organizational Performance

Abstract

The digital transformation linked to the Industry 4.0 concept is fundamentally altering human resource management and creating new HRM 4.0 practices that influence organisational performance. This paper aims to analyse which HRM practices have a statistically significant effect on specific business performance indicators and to determine their relative importance. The research was carried out through surveys. Data were analysed using factor analysis and both single and multiple linear regression. The findings confirmed that practices promoting autonomy at work, the hybrid work model, and employee psychological well-being have the greatest impact on performance metrics. Employer branding proved to be a strong predictor of both productivity and workforce stability. Conversely, purely technological tools such as gamification, automated resume screening, and online interviews did not show significant effects. Personalised and performance-based pay systems contribute most to profitability, while continuous learning and retraining are vital for job satisfaction and reducing staff turnover. The discussion highlights that the success of HRM 4.0 depends more on the strategic integration of practices than on digitalisation itself. The limitations of the research include the self-assessment nature of the data, the sector-specific sample, and the cross-sectional design. Nonetheless, the study offers valuable insights for developing effective HR strategies in the digital era.