An exploration of the intrinsic connection between enterprise change and labour force employment in the digital era

Aim: In the digital era, enterprises are transitioning towards more efficient and adaptable models of production and service delivery, precipitating a shift in labour demands, which has engendered a reliance on technological solutions over human labour, resulting in the obsolescence of certain traditional roles and at the same time, the genesis of novel employment prospects. This study examined the fundamental nexus between enterprise evolution and workforce employment in the digital age, scrutinising the repercussions of such transitions on job opportunities and the requisite skill sets for workers. Methodology: Utilising data from China’s A-share listed companies spanning 2007-2022 and grounded in extant literature on digital enterprise transformation and labour employment, the research applied a benchmark regression model and regression analysis. Results: The findings shows that digital transformation within enterprises exerts a profound influence on the magnitude and composition of labour force. There was a discernible employment generation effect for personnel with high, medium, technical, and service-oriented skills, whereas a substitution effect was observed for lower-skilled and production-centric roles. The impact of enterprise digital transformation on employment is manifested through various channels, including market size, business domain, and production efficiency. Furthermore, the study revealed heterogeneity in employment effects across enterprises with differing scientific and technological characteristics and geographical locations, with digital transformation in high-tech sectors and central and western regions demonstrating a more pronounced facilitation of workforce employment. Implications and recommendations: The insights gained from this research offer valuable implications for corporate governance and policy formulation. Managers are urged to anticipate changes and facilitate employee skill enhancement through training and re-education, thereby aligning with emergent occupational paradigms. A reevaluation and recalibration of human resource management strategies are imperative, alongside the establishment of incentive and welfare systems that attract and retain talent. Originality/value: Policymakers should devise pertinent regulations and invest in digital education initiatives, thereby empowering citizens to elevate their digital competencies.