Human capital in the digital transformation of the labor market: A field study in the machinery manufacturing industry

Digital transformation in the machinery manufacturing industry brings the risk of replacing human labor with robots in labor markets while simultaneously increasing the demand for a workforce with new skills. The main objective of this study is to analyze how digital transformation has transformed the employment structure, production processes, and human capital management in the machine manufacturing industry. In this research, a mixed methods approach was adopted, combining quantitative and qualitative methods. Within this scope, interviews were conducted with 38 mid-sized companies with high representativeness, and a survey was conducted with 60 company officials. The data obtained from the qualitative research were analyzed using the MAXQDA Analytics Pro 2024 program, and the data obtained from the quantitative research were analyzed using the SPSS program within the framework of the codes and themes determined. According to the research findings, firms consider digitalization in both software and hardware dimensions, with the majority investing in digital transformation using their own capital rather than relying on incentives. It has been observed that investments in digital transformation are predominantly directed towards production processes. In terms of labor force employment, there is a strong belief that digital transformation will reduce employment. However, participating firms view the employment of recent graduates positively. All participating firms stated that there is a significant difference between the skills required by digital transformation and the current workforce demands of the industry. The digital transformation process is not expected to negatively impact confidence in employees or human capital. In the field of occupational health and safety (OHS), digitalization is anticipated to reduce traditional risks; however, it may introduce new risk areas related to cybersecurity, data collection, and data sharing. While most firms do not believe that professions will completely disappear, welding, molding, assembly work, and machine operation are among the professions expected to be most affected by digital transformation. It has been determined that firms do not favor flexible working models and that they aim to preserve the existing structure while adapting to digital transformation. Finally, The research concluded that digital transformation is a complementary element to human capital.