Modernization of Institutional Support for Human Resource Development Management in the Digital Economy

The article explores how institutional mechanisms for developing human potential have evolved and modernised in the context of rapid digital transformation. The study aims to highlight the urgent need to adapt the institutional structures of HR management in response to the challenges and opportunities posed by digital technologies, automation and evolving labour organisation patterns. The relevance of the topic is determined by the growing demand for digital competencies, the transition to hybrid employment models and the need for collaboration between educational institutions, businesses and public authorities. Methodologically, the study takes a combination of institutional, systemic, and functional approaches to gain a thorough understanding of the dual nature of institutional frameworks – both formal and informal – and their impact on personnel management practices within the digital economy. The article distinguishes between formal institutions, such as legal acts, government regulations, professional education standards and administrative HR procedures, and informal institutions, such as organisational culture, social norms, values and unwritten behavioural codes. It argues that effective personnel development in the digital age requires a combination of these two institutional dimensions: while formal instruments ensure regulatory consistency, informal ones provide flexibility and adaptability. Particular attention is paid to the role of digital platforms, artificial intelligence, and remote working tools in shaping new norms of interaction, performance evaluation, and professional development. Furthermore, the research emphasises the importance of creating an institutional ecosystem that encourages lifelong learning, reskilling, and cross-sector mobility. It also addresses barriers such as institutional inertia, digital inequality, and insufficient alignment between educational content and labour market demands. To enhance institutional adaptability, the paper proposes a set of strategic recommendations, including updating national qualification frameworks, promoting public-private partnerships in education, incorporating digital skill matrices into HR strategies, and encouraging innovation-driven corporate policies. The study's practical significance lies in providing enterprises and HR professionals with guidelines for modernising their institutional environment and human capital development mechanisms. The results could inform labour and educational policies, while also providing a framework for further academic research into institutional dynamics in the digital age.