Testing the Human Resource Allocation Model with a Soft Skills Approach in Knowledge-Based Companies

Abstract

This study aimed to design and validate a human resource allocation model based on a soft skills approach in knowledge-based companies operating in Iraq. The research employed an applied, quantitative, and descriptive-correlational design. The statistical population consisted of employees working in knowledge-based companies across Iraq. Given the infinite size of the population, the sample size was determined to be 384 using Cochran’s formula. Data were collected through a researcher-made questionnaire designed to capture various dimensions and indicators related to soft skills in human resource management. The constructs included identifying required skills, assessing current employee skills, identifying job requirements, appropriate selection and training, and monitoring and evaluating soft skills. Data analysis was conducted using structural equation modeling (SEM) with SmartPLS software, and model fit was evaluated using the GOF index. The results indicated that all hypothesized relationships within the model were statistically significant (t > 1.96). Specifically, human resource allocation based on soft skills showed strong and significant relationships with: evaluation of current employee skills (t = 175.84; factor loading = 0.93), appropriate selection and training of employees (t = 196.219; factor loading = 0.93), identification of required skills (t = 49.372; factor loading = 0.82), identification of job requirements (t = 197.961; factor loading = 0.93), and monitoring and evaluating soft skills (t = 222.504; factor loading = 0.94). The overall model demonstrated a strong fit with a GOF value of 0.67. The findings highlight the strategic role of soft skills in effective human resource allocation. Organizations can enhance employee performance and organizational alignment by investing in identifying, developing, and assessing soft skills. Training programs, continuous feedback, and cross-functional project participation are recommended to improve soft skill capacities. This model provides a robust framework for integrating soft skills into HR strategies in knowledge-based environments.