DIGITAL TRANSFORMATION’S IMPACT ON SUSTAINABLE HR MANAGEMENT: COMPARATIVE STUDY OF WORK-LIFE BALANCE AND SKILL DEVELOPMENT IN PUBLIC VERSUS PRIVATE SECTORS OF A DEVELOPING COUNTRY Arbnor BAJRALIU Loughborough University London, 3 Lesney Avenu, Te Broadcast Centre, Here East, Stratford, London, E20 3BS Institute for International Management Gazmend QORRAJ University of Prishtina, St. Agim Ramadani, pn, 10000 Faculty of Economics https://doi.org/10.5755/j01.ppaa.22.3.35071 VIEŠOJI POLITIKA IR ADMINISTRAVIMAS PUBLIC POLICY AND ADMINISTRATION 2023, T 22, Nr. 3/2023, Vol. 22, Nr. 3, p. 358-369 ISSN 1648-2603 (print) ISSN 2029-2872 (online) Abstract. Te quick development of digitalization has transformed the nature of work and has brought new opportunities for businesses to achieve sustainable human resource management in many ways, includ- ing remote working as a means to achieve work-life balance and training access for new skill development. Objective - the objective of this study is to ofer a comprehensive understanding of the challenges faced by private and public organizations in Kosovo. Tis study tries to make a comparison between these two sectors aiming to help public administration policymakers spot the gaps between sectors and improve digitalization in the public sector. Methods: we have conducted a qualitative analysis. 21 interviewed businesses explained in detail the process of digitalization and its efect on achieving work-life balance and new skills development as ways to achieve SHRM. Results: according to the analysis, digitalization is improving both public and pri- vate workers’ skills. However, private companies are more likely to use remote work to achieve work-life bal- ance, while in public organisations; digitalization has mostly helped in the training of employees. Conclusions: In general, digitalization has helped businesses achieve SHRM. Despite the fact that, in general, private-sector businesses beneft more from digitalization than public organizations. Keywords: Sustainable HRM, Digital Transformation, Work-life Balance, Skill Development, Trainings, Online Platforms Reikšminiai žodžiai: tvarus žmogiškųjų išteklių valdymas, skaitmeninė transformacija, darbo ir asmen- inio gyvenimo pusiausvyra, įgūdžių ugdymas, mokymai, internetinės platformos Introduction Te increasing adoption of Artifcial Intelligence (AI) and the digital transformation of human re- source management are having a big efect on business processes. Smart technology, artifcial intelligence (AI) and automation, robotics, cloud computing, digital storytelling and the Internet of Tings (IoT) are some of the developments that are transforming the way people work and that are causing concerns about the future of jobs and businesses (Trenerry et al., 2021; Sirca et al., 2022). To remain competitive in the