The digital era has transformed the business landscape, giving rise to flexibility and transformation of work across the globe (Neufeind et al., 2018). Technologies such as AI and robotics are transforming the banking landscape by shifting banking processes from traditional to digital banking and, accordingly, changing the workplace and employee roles (Skilton & Hovsepian, 2018). Banks will need to take employees through the digital journey and educate them to enhance the acceptance and integration of technology in the workplace (Diener & Spacek, 2021). The challenge for banks will be to define future skills and behavioural competencies and quantify the implications digital banking technologies have on business process innovation (Brown et al., 2019).

As a result of digital innovation, employees will be required to adapt to new roles in order to remain employable; employees’ career experiences will be affected and organisations will be required to help them navigate through constant changes in the workplace (Hirschi, 2018). It will be vital for banks to rethink their current talent management practices as they respond to technology in the workplace. Strategies will be needed to recruit, retain, re-skill employees and redesign talent-management frameworks (Bersin, 2023).

Thus, the human capital (HC) function will be required to partner with business to determine the way in which digital technologies such as RPA affect roles and competencies and evolve jobs. It would be essential for HC to ensure that talent management processes are geared at developing employees’ skills and attracting new talent with the required skills (Nesindande, 2020).

The digital transformations underway require changes in work design and the integration of automated activities and employee jobs to transform the organisation through digitisation (Morton et al., 2020). These new ways of work include automation of tasks, new work processes, and integrating human and technology activities to enhance work. Thus, digital technologies require novel thinking about work since these technologies are likely to reinvent work and create new jobs in the workplace (Chaumon, 2021). These new jobs demand creating new capabilities and a new identity of work, adopting novel ways of thinking about work, combining new tasks and old ones (Baptista et al., 2020). Moreover, the new ways of work have shifted the workplace towards remote and flexible work practices. These arrangements affect employee performance, productivity, work-life balance, and the time they spend on commuting to the workplace (Barrero et al., 2021).

Digital transformations within the workplace will result in changes to its structure, operations, business processes and capabilities (Kraus et al., 2022). Thus, digital changes need the commitment of employees and the organisation, and proper change management processes are required in place to transition from traditional to digital workplaces (Harteis, 2018). Successful change management requires the involvement and support of senior management in the organisation, influencing employees to accept changes through continuous communication and learning, involving employees in the digitalisation decisions of the workplace and communicating the vision and benefits of change (McKinsey & Company, 2018).

Change should be both top-down and bottom-up (Hartl, 2019). This suggests that senior managers in the workplace must spearhead and effectively communicate the vision for change, while simultaneously ensuring the engagement of all employees to secure their acceptance of workplace changes. Effective change management initiatives encourage the integration of digital technologies in the workplace, equip employees with digital proficiency through training, minimise disruptions to jobs, reduce digital fear and enhance factors that influence employee adoption of technologies (Chaumon, 2021). Therefore, there is a need for change management strategies and models that help employees navigate constant changes in the workplace (Reis & Melão, 2023).

In responding to digital transformational changes in the workplace, Kotter’s 8-step change process that should be followed to accelerate change is suggested (Pulido & Taherdoost, 2023). The first and second steps of the process suggest that a sense of urgency regarding the need for change should be established, and that a powerful coalition of individuals that will drive the digital transformation strategy needs to be in place. Thirdly, a strategic vision and initiatives should be formed to make digital change a reality. Next, the change management team must get support through an army of volunteers who could be ambassadors of digital change in the workplace. The change management team must then move to action by removing barriers which include processes, policies and structures that inhibit digital transformation. The sixth step includes creating short-term wins to support benefits of digital transformation. Thereafter, acceleration should be sustained through creating a momentum for the change in the workplace. Finally, it is important to institutionalise digital change as the new norm and culture of how things are done in the workplace. Exploring if these steps are taken by banking workplaces to address digital technology implementation will help identify specific opportunities and challenges.

Culture is critical in driving the digital agenda and thus, banks will need to ensure that they have the right change cultures for digital success (Diener & Špaček, 2021). For banks to take advantage of digital tools, they will need to ensure that the right organisational culture is created to support technological changes, which in turn means that a clear digital strategy is required (Martínez-Caro et al., 2020). Thus, a fundamental shift in shared beliefs and assumptions is required in the organisation (Ketprapakorn & Kantabutra, 2022), with employees viewing the digital workplace as a catalyst for progress, benefitting both the organisation and the workforce. Instilling new beliefs, shared assumptions and a cohesive digital strategy can enable organisations to usher in a culture that embraces change, leverages digital tools and ultimately creates value and drives economic growth (Harteis, 2018).

The HC departments have a pivotal role in spearheading digital transformation within the banking sector. These departments need to lead by example, leveraging technology to create agile and flexible environments conducive to innovation (Williams, 2019). Furthermore, a positive organisational culture is essential for fostering innovation and enabling organisations to respond swiftly and adeptly to market changes (Naveed et al., 2022). By investing in their cultures and treating them as assets, banks can position themselves for success in the digital era, empowering their employees to lead digital transformations and adapt to the evolving demands of the market. It is, however, not clear whether banks are giving due consideration to culture when undergoing digital transformation.

According to Alade and Windapo (2020), 4IR demands leaders to effectively lead the workplace in the digital era. The leaders themselves, their leadership style, their leadership traits and their leadership intelligence all have a positive effect on technological success. Leadership traits such as the ability to embrace digital disruption, agility, and focus on talent development to upskill staff are crucial for ensuring digital success. Leadership plays a vital role in the digital workplace as leaders define the strategy, communicate technology interventions and influence of technology adoption as well as the building of a skilled workforce that will lead the organisation into the future (Baker, 2011). Thus, banks must ensure that the right leadership and organisational culture are in place to support digital transformations in the workplace (Dittes et al., 2019).

Theoretical frameworks were used to understand the effects of digital transformation in the workplace, understand employee adoption of technology and organisational readiness in the digital workplace. The theories discussed include the diffusion of innovation theory and a multi-level theoretical framework.

Rogers’ (2003) Diffusion of Innovation Theory outlines the roadmap and steps for managing employees when it comes to the diffusion of innovation in the workplace. Deliberate actions must be taken to increase the chances of the positive workplace perception of a new technology that is adopted and implemented. Four main elements must be considered around diffusing technology, namely innovation, communication channels, time, and the social system (Rogers, 2003).

This framework indicates that digital transformation takes place at multiple levels, including, as indicated, those of the individual, the group and the organisation. The multi-level theoretical framework links to the present study with regard to its exploration of digital transformation in the workplace. This framework was a lens through which the elements described on the three levels, namely technology acceptance and adoption, skills and training, team communication and collaboration leadership, human resources and the organisational culture and climate were explored (Trenerry et al., 2021).

In exploring digital transformation within the banking sector, the critical role of organisational culture and HC is delved into, in order to drive successful adaptation to technological advancements. Banks must cultivate a culture that embraces digital initiatives, fosters collaboration and empowers employees to innovate in order to thrive in the digital era. Drawing upon insights from scholars such as Ketprapakorn and Kantabutra (2022) and Diener and Špaček (2021), the research underscores the need for banks to align their digital strategies with organisational culture, ensuring that shared beliefs and assumptions support technological change. Furthermore, the pivotal role of HC departments in leading digital transformation efforts, emphasising the importance of leveraging technology to create agile and flexible environments that facilitate innovation were also explored.

As a result of the comprehensive analysis, several key outcomes emerge. Firstly, organisational culture plays a crucial role in shaping the success of digital transformation initiatives within the banking sector. Banks that foster a culture of openness, collaboration and adaptability are better equipped to navigate the complexities of the digital landscape and drive innovation. Secondly, the significance of HC in driving digital transformation is highlighted, emphasising the need for HC departments to play a proactive role in leading organisational change. By investing in employee training, talent development and creating an environment conducive to technological innovation, banks can position themselves for success in an increasingly digital world. Thus, literature suggests that there are several aspects that must be given attention to, to ensure the effective implementation of digital strategies.

The banking organisation chosen for the study was on a digital journey during the period of this study. It was transforming its operations by moving to digital channels to service clients, multiskilling its employees and transforming its HC practices, with the intention of being a digital bank of the future. Thus, the choice of institution suited a study of the phenomenon at hand. The situation made the findings of the study more insightful and beneficial for the greater South African banking sector, as the sector overall is transitioning to greater levels of digitalisation.

The present researchers were aware of personal biases while conducting the research. One of the three researchers, who also conducted all the interviews, played an insider’s role as an employee of the selected bank. While the advantage of this role was that the researcher was able to gain insights regarding the study to a greater degree, the disadvantage was that the researcher had to constantly check own biases to ensure the findings and the subsequent analysis would remain objective (Sparkes & Smith, 2014). Moreover, the researcher had to manage dynamics of power represented by the position of the researcher in the bank. This was managed by ensuring that none of the participants reported to the researcher and no dynamics of power existed over the participants in the study (Marczyk et al., 2005).

Purposeful sampling was used, and participants were selected based on the different roles they held in the bank. Purposive sampling allows the researchers to choose the sample based on features that are relevant to the study (Silverman, 2014). According to Kothari (2004), it involves the deliberate selection of particular units of the population so as to find a sample that represents the population. Furthermore, purposive sampling is ideal when certain characteristics must be studied intensely. In-depth semi-structured interviews were conducted with 18 participants, including 3 heads in business departments, 5 business managers, and 10 HC professionals. Purposive sampling was deliberately used with specific objectives in mind (Ngulube, 2020).

Qualitative research approaches facilitate numerous data collection methods, centred on among others, focus groups; observations; surveys and interviews. To appropriately achieve the research objective, an interview approach was selected for data collection (Marczyk et al., 2005). In-depth semi-structured interviews were utilised to this end. Data saturation was carefully considered during data collection (Ando et al., 2014). The selected data collection method was used to bring the researchers closer to the phenomenon, to understand the beliefs held by participants, gain direct access to their thoughts, and to examine what they did in reality (Lieber, 2009; Silverman, 2014).

Necessary steps were taken to ensure credibility, analysability and transparency of findings. The total-quality framework was applied in the study in accordance with the work of Roller and Lavrakas (2015). Firstly, credibility was achieved by ensuring accuracy in data gathering. An interview guide was utilised so that the same questions were asked to all participants. Secondly, analysability of data was ensured by being accurate in the processing and verification of data. All interviews were recorded and transcribed, as indicated. Thirdly, transparency was ensured by ensuring that the study can be fully evaluated and that all the findings are clearly reported.

In the data analysis stage of the study, the researchers undertook the process of immersing in the data collected by transcribing the interviews that had been conducted and managing the data (Sparkes & Smith, 2014). Each interview was transcribed manually by listening to each recording, transcribing that which each participant said during the interview process verbatim, making summaries of the data, and preparing the data by plotting information in an Excel worksheet for the coding process to bring about the trustworthiness of the findings (Hammond & Wellington, 2013). The researchers used thematic analysis to analyse the data obtained from the in-depth semi-structured interviews (Lieber, 2009). The researchers undertook an inductive approach to generate codes and themes for the purpose of analysing the data (Hammond & Wellington, 2013).

Participants agreed that digital technologies have affected the workplace of banking in various ways. These technologies brought about new aspects to the way in which employees do their jobs. Digital technologies have automated certain processes and affected the interaction with the customer. When discussing new ways of work, one must consider the automation of processes, focus on customer, and emphasise on analysis of work and flexible work.

Participants agreed that they had observed shifts regarding processes. Processes have changed to align to the digital technologies implemented in the bank. Some participants noted that the new processes created efficiencies for customers in particular, since applying for bank products took less time than before:

Participants agreed that through technology, the interaction with the customer had improved, and they had shifted towards the use of digital platforms for their banking. Employees had rich conversations with clients convincing them to use digital platforms for their banking:

Participants indicated that technology had shifted the way in which employees did their work. Particularly, it had shifted to a situation in which employees were performing value adding work to a greater degree, including the analysis of information to drive data decisions:

Several participants outlined that the bank adopted flexible work arrangements in response to the coronavirus disease 2019 (COVID-19) pandemic and the advance of general digital technologies. Some participants indicated that it was important to equip managers with the skills required to lead teams that would work virtually, while not being physically present at work:

Change management emerged as an important theme in the analysis. The change management process undertaken by the bank for implementing digital technologies engendered three sub-themes including communication and awareness, mindset change, and dedicated change management team.

Participants highlighted that the bank followed specific steps to ensure that employees were communicated about the change, made aware of what was coming, and were educated on what change meant for them. More rollout and communication plans were required to ensure that all stakeholders were included in the communications. Moreover, managers were required to play an active role during change by supporting employees.

Employees who were willing to change their mindset regarding work and work processes were identified by several participants to be successful. The role of leadership role around influencing employees to alter their mindset towards change and leave the old ways behind was also emphasised by several participants. This was in fact viewed as a key component of the process:

Additionally, participants noted that proper change management was required to ensure that all employees were involved in change. A dedicated change management team was imperative for the successful implementation of change across the bank:

Participants noted that the leadership role was a key aspect of the success of digital transformation and change. Participants indicated that the leader’s role included various elements including articulating the reasons for digital transformation, being exemplary by walking the talk, leading through change, being flexible, trusting employees, showing employees the bigger picture and vision for change, engaging with them, and constantly communicating with them:

The bank requires a culture of innovation, forward thinking, thinking out of the box and flexibility. This would be a culture in which employees are allowed to experiment and make mistakes without fearing consequences. Participants agreed that culture entails the organisation’s everyday practices and how people behave, rather than that which is put on paper:

The banking workplace must understand the aspects affected by technology including automation of work, automation of processes and evolution of technology. These aspects have clearly given rise to new ways of work. Should the present findings be applied, the automation of work may require changes in work design by integrating automated activities to employee jobs.

The new ways of work may require the creation of new jobs in the workplace of banking (Chaumon, 2021) and the adoption of digital methodologies. The digital workplace of banking is complex and requires digital tools, platforms, digital capabilities, constant innovation, the empowerment of employees, the habit of operating with flexibility, and retention and engagement of talent in the workplace (Shivakumar, 2020). Banks may also need to restructure operations to optimise work processes and adapt.

Findings suggest that organisations undergoing digital transformations should prioritise effective communication throughout the process, ensuring constant awareness and education about impending changes. The involvement of all the employees is crucial to successful digital implementation. Additionally, leaders play a critical role in guiding employees through the change management process, by fostering trust and facilitating mindset shifts.

The findings of the study advocate for a transformation in leadership and culture for the digital workplace to succeed in the digital era. The participants found leadership to be central to transformational change in the workplace of banking. Since leaders influence culture, they are viewed to be the custodians of culture and are accountable for driving the required digital culture in banking. Thus, leaders should craft and communicate a clear digital strategy aligned with organisational objectives. Leaders must also foster innovation, encourage experimentation and solicit input from all stakeholders. Serving as change agents will also help leaders to guide teams through the journey, equipping them with the skills required to adapt to evolving work practices.

An open, collaborative and innovative culture is required for organisations to thrive in the digital era. Thus, leadership practices should be inclusive, flexible and supportive of new digital cultures, taking into account daily practices that shape culture, ensuring alignment with aspirational culture values.

The banking workplace must integrate technological solutions to transform HC functions, including talent management processes and learning interventions, onto online platforms. Additionally, automation of HC processes can enhance efficiencies within the HC function, allowing for streamlined operations and reduced manual workload.

Organisations would need to adopt a fresh approach to talent management, focussing on creativity, innovation and employee-centric practices. Strategies will be required to recruit, retain, re-skill their employees and redesign talent-management frameworks (Bersin, 2023).

Additionally, HC policies and practices must be aligned with the overall organisational strategy. Strategic partnerships between the HC function and the business must be fostered, also developing a proactive and digitally savvy HC community.

With the integration of digital technologies, employee development must be invested in, reshaping talent management strategies to align with the evolving landscape. The present findings prompt that the workplace of banking may need to invest in continuous learning and development of digital skills. Ongoing learning efforts may need to be driven by employees and the workplace through technology. Employees are required to stay relevant and navigate the new digital context (Vallo Hult & Byström, 2021).