Analysis of challenges in sustainable human resource management due to disruptions by Industry 4.0: an emerging economy perspective

Purpose Sustainable human resource management highlights the importance of the eighth sustainable development goal, “decent work and economic growth”. Thus, the purpose of this study is to align human resource practices and policies with Industry 4.0 is imperative. Design/methodology/approach The authors aimed to identify key challenges of sustainable human resource implementation in view of Industry 4.0 and to analyse these identified challenges by prioritising them for effective Industry 4.0 implementation in an emerging economy such as India. A mixed-methods approach was utilised to prioritise identified challenges. Semi-structured interviews were conducted with experts, academicians and industry mangers. Transcribed interviews were run in NVivo to emerge into broad themes/challenges, which were prioritised using fuzzy best–worst methodology. Findings The performance appraisal challenge holds maximum importance, followed by learning and development. This finding signifies the need for instilling job security and continuous learning opportunities for employees amidst all disruption caused by Industry 4.0. Practical implications This work enhances the link between sustainability, disruptive technologies and Industry 4.0 to transform economic outlooks, leading to improvement under economic aspects through the adoption of sustainable human resource practices into workplaces and society. Originality/value Sustainable human resource management has mostly focused on employee welfare. However, the major challenges of disruption caused by Industry 4.0 have not been addressed in the literature. The upskilling and reskilling requirements due to disruptions by Industry 4.0 range from recruitment to performance appraisal and every facet that relates to an employee's cycle in a company. Hence, there is a need to identify critical challenges for optimum adaptation to upcoming industry demands.