Navigating the Path to Sustainable HR: Understanding Key Challenges for Future-Ready Workforce Management

Sustainability has been perceived as the prime goal to be achieved for the long-term success and resilience of any organization. Thus, this chapter presents a detailed study that draws on the Decision-Making Trial and Evaluation Laboratory methodology to prioritize key challenges in sustainable HRM. We wish to provide a strategic framework through which HR professionals will be better equipped to respond effectively to critical issues by identifying challenge interdependencies. The variables in the study are very diverse and range from economic to social to environmental dimensions that cover the overall concept of sustainable HRM. The methodology used in the chapter is DEMATEL, which allows one to map cause–effect relationships between the identified challenges, thus aiding in the development of targeted strategies to improve the sustainability of HR practices. Our findings present the most influential challenges and their interrelations, providing useful insights for policymakers and practitioners who want to foster a more sustainable workforce that is ready for the future. The key challenges we identified are talent retention, diversity and inclusion, fair compensation and benefits, and the integration of technology. While employee engagement is one of the most important factors due to its impact on other factors in achieving sustainable HRM, the DEMATEL analysis recognizes that greater emphasis has to be placed on how HR practices need to merge with the goals of organizational sustainability in building a resilient and adaptive workforce. This work, therefore, contributes to the existing literature by boosting the strength of this analytical tool so that pressing challenges are prioritized and tackled within the context of sustainable HRM. Given this, the knowledge developed will act as a catalyst, providing organizations with advice on adopting more sustainable HR practices, thus supporting their journey toward long-term sustainability targets and enhanced overall organizational performance.