Engagement strategies in a digital multigenerational world: insights from multinational companies on unlocking the potential of Human Capital 4.0
| Date | 06 January 2025 |
| Pages | 174-204 |
| DOI | https://doi.org/10.1108/JIC-03-2024-0092 |
| Published date | 06 January 2025 |
| Author | Juliana Salvadorinho,Carlos Ferreira,Leonor Teixeira |
Engagement strategies in a digital
multigenerational world: insights from
multinational companies on unlocking
the potential of Human Capital 4.0
Juliana Salvadorinho
Department of Economics, Management, Industrial Engineering and Tourism
(DEGEIT), Institute of Electronics and Informatics Engineering of Aveiro (IEETA),
University of Aveiro, Aveiro, Portugal, and
Carlos Ferreira and Leonor Teixeira
Department of Economics, Management,
Industrial Engineering and Tourism (DEGEIT),
Institute of Electronics and Informatics Engineering of Aveiro (IEETA), Intelligent
Systems Associate LA-boratory (LASI), University of Aveiro, Aveiro, Portugal
Abstract
Purpose –This research explores human factors practices in the context of Industry 4.0, Industry 5.0 and the
multigenerational workforce, promoting the evolution of Human Capital 4.0. Withthe emergence of generations
YandZ, organizationsare more volatile,heightening therisk oftacit knowledge loss.Conditions conduciveto
retaining employees must be created, particularly by prioritizing engagement initiatives.
Design/methodology/approach –Addressing these imperatives required the adoption of a comprehensive
mixed-methods methodology,which integrated a systematic literature review, a qualitative thematic analysis of
30 interviews conducted with employees from three multinational organizations and a quantitative statistical
analysis of a questionnaire gathering 560 responses.
Findings –The study identifies essential practices for enhancing employee well-being, considering blue and
white collars, using the PERMA model. It recommends adopting corporate social responsibility (CSR)
initiatives and flexible work arrangements to improve positive emotion. Engagement is strengthened by aligning
roles with employee strengths, offering ongoing learning opportunities and incorporating gamification. Strong
Relationships are fostered through coaching, mentoring and participatory decision-making. Meaning in work is
supported by encouraging a protean career attitude and integrating CSR activities to align personal and
professional values. Accomplishment is achieved through lean management principles and recognition
programs that facilitate goal achievement and employee appreciation.
Originality/value –This is the first multigenerational study to include Gen Z, both blue- and white-collar
workers and the PERMA model, offering a set of practices designed to improve Human Capital 4.0 retention.
These practices target adaptation to both the digital paradigm and the multigenerational environment as well as
addressing the phenomena of the Great Resignation and Quiet Quitting.
Keywords Human Capital 4.0, Tacitknowledge, Employee engagement, Industry 5.0, Multigenerational world
Paper type Research paper
1. Introduction
Industry 4.0 (I4.0) is revolutionizing the organizational world and this phenomenon cannot
simply rely on digital technology alone, as the human component in work operations and
processes also needs to adjust quickly to changes in the business environment (Kumar et al.,
2020;Salvadorinho and Teixeira, 2020a;Zhang et al., 2023). Industry 5.0 (I5.0) emerged
following the adoption of I4.0, emphasizing goals beyond economic growth, such as
environmental sustainability and societal well-being. It places human resources at the core of
JIC
26,1
174
This research was supported by the Foundation for Science and Technology and the European Social
Fund, through grant number 2021.07419.BD.
Conflict of interest: Authors have no conflict of interest to report.
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1469-1930.htm
Received 2 April 2024
Revised 25 August 2024
10 November 2024
11 December 2024
Accepted 11 December 2024
Journalof Intellectual Capital
Vol.26 No. 1, 2025
pp.174-204
©Emerald Publishing Limited
e-ISSN:1758-7468
p-ISSN:1469-1930
DOI10.1108/JIC-03-2024-0092
innovation, focusing on human creativity and collaboration with advanced technologies
(Leon, 2023;Xu et al., 2021). Workengagement is one of the most popular managementtools,
and is crucial for achieving high levels of performance, fostering innovative work, and
retaining employees within the organization (Kaasinen et al., 2020). To effectively align with
digitalization strategies, it is essential to foster dynamics that enhance engagement through
participatory design, effective communication, knowledge sharing, information visualization,
targeted training, and leadership that sets clear goals, acknowledges achievements, and
supports career and skill development (Aromaa et al., 2018;Lithoxoidou et al., 2017).
Besides, the literature extensively acknowledges that organizations characterized by being
authentizotic [1] can cultivate a distinct set of values. These values enable members to foster a
sense of purpose, self-determination, impact, competence, belonging, meaning, and
satisfaction, thereby significantly enhancing levels of work engagement (Rego and Cunha,
2008). The PERMA model is a contemporary framework in positive psychology that
emphasizes well-being, with its application extending beyond individual employees to
encompass the entire organization, offering a comprehensive approach (Seligman, 2018).
The main aim of this article is to clarify the strategic importance of human resources
practices in promoting workforce engagement, especially in the context of I4.0 and I5.0,
workforce volatility and multigenerational dynamics. This paper uses the PERMA model as a
framework to contextualize the results obtained to retain and effectively manage Human
Capital 4.0. The main research question is therefore:
RQ1. How can human capital practices be strategically optimized to enhance workforce
engagement amidst the challenges of I4.0 and I5.0, workforce volatility, and
multigenerational dynamics?
To achieve this, a mixed methods approach employing convergent and holistic triangulation
was adopted. This methodology involved: (1) Conducting a comprehensive literature review
on I4.0 and I5.0, engagement, job satisfaction, retention, and generational dynamics; (2)
Performing an empirical study with 30 interviews from leaders in three multinational
organizations to gather insights on engagement practices; and (3) Administering an
authentizotic climate questionnaire in two of the organizations to assess engagement within
the digital context, considering generational differences and blue-collar [2] versus white-collar
classifications. This classification is crucial because recent research shows differing attitudes
and perceptions between blue-collar and white-collar workers, particularly regarding potential
resignations. Additionally, the effect of increased job insecurity on the psychological contract
between employees and employers is a significant factor that requires analysis (Toshav-
Eichner and Bareket-Bojmel, 2022). In addition, the PERMA model is used as a framework for
contextualizing the engagement strategies that result from the research.
The subsequent sections of this paper are organized as follows: Section 2 presents the
theoretical background, emphasizing human capital challenges within the I4.0 and I5.0 paradigms
and exploring content motivational theories. Section 3 outlines the methodology employed,
including data collection and analysis methods. Section 4 delineates the outcomes of the
theoretical study, based on a double-entry systematic review.Section 5 elucidates the findings of
the empirical study, which includes interviews and an assessment of the authentizotic climate.
Section 6 offers a comprehensive discussion of the results from all methodologies used. Section 7
summarizes the primary conclusions, integrating theoretical and practical contributions. Finally,
Section 8 addresses limitations and proposes avenues for future research.
2. Theoretical background
2.1 Human capital challenges in industry 4.0 and 5.0 contexts
I4.0 and now I5.0 are impacting how a company should focus on training, education, and
human capital development (Rassameethes et al., 2021;Salvadorinho et al., 2020). It is
important to mention that the intent to humanize the built technological environment for I4.0
Journal of
Intellectual
Capital
175
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