A B S T R A C T

The purpose of the research is to conduct a systematic examination of the current state of human resource management (HRM) in Azerbaijani companies, to identify the main challenges encountered in this field, and to propose practical as well as strategic recommendations aimed at addressing these challenges.

The methodology of the research is based on the application of a systematic approach, comparative analysis, statistical data processing, and various analytical methods.

The practical importance of the research lies in the applicability of the proposed recommendations, which can be effectively implemented to improve the utilization of human capital in Azerbaijani companies, enhance their competitiveness, and position HRM as a strategic partner. Consequently, these measures contribute to the sustainable economic development of the country.

The results of the research indicate that in the majority of local companies, HR functions are still predominantly administrative in nature; strategic integration remains insufficient, while the adoption of digital technologies and investments in talent development are limited.

The originality and scientific novelty of the research are reflected in its comprehensive analysis of HRM in Azerbaijan for the first time from the perspectives of digital transformation, strategic planning and talent management.

The recommendations presented in the article have practical relevance for Azerbaijani companies, fostering increased competitiveness, more efficient use of human capital, and the achievement of sustainable development.

Keywords: human resources, Azerbaijani companies, strategic HRM, employee development, performance management.

http://doi.org/10.59610/bbu1.2026.1.15.