Abstract
The digital revolution in the technology industry is leading towards Industry 5.0, resulting in significant changes in the future of work, particularly for small and medium-sized enterprises (SMEs). To ensure a successful industrial transition, it is crucial for employees to acquire the necessary skills and competencies. In this vein, the present study aimed to investigate the impact of digital and sustainable transformation on the required skills and competencies of employees in SMEs. A literature review was conducted to gather scientific data through a qualitative analysis. The study findings indicate that SMEs are placing increasing importance on transversal, technical, and green competency fields. Furthermore, the research indicated that SMEs can enhance their employees’ capabilities by offering appropriate training programs. By employing competency forecasting techniques, SMEs can recognize skill shortcomings and equip their workforce with the necessary skills for future requirements.