.Purpose– This study investigates the mediating role of agile HRM practices (AHRMPs) in explaining the indirect relationship between agility drivers (ADs) and workers' agility capabilities (ACs) in dynamic business environments.

Design/Methodology/Approach– Using a cross-sectional survey, data were collected from 346 employees at Suez Steel Companies (SSC) in Egypt. The hypothesized model was analyzed through PLS-SEM technique. Semi-structured interviews with 27 key SSC positions provided qualitative insights, analyzed through thematic analysis technique.

Findings– Results indicate that the dimensions of ADs, specifically changes in customer requirements and competition, positively impact both workers' ACs and AHRMPs. Agile HRM practices, specifically agile training needs planning, teamwork, motivational planning, and organic remuneration, significantly influence workers' ACs and mediate the relationship between ADs (i.e., customer requirement, competition and technology) and ACs.

Research limitations/implications– Limited focus has been placed on how HRMPs equip workers with the competencies needed to recognize and respond to unexpected environmental changes.

Originality/value– This study addresses this gap by developing a novel agility methodology for managing changes in disruptive markets through exploring the interdependencies among the OA components of: ADs, AHRMPs, and workers' ACs. Resource Dependency Theory (RDT) is employed to elaborate on how AHRMPs enhance workers' agility competencies required to sense and response efficiently to unprecedented environmental changes.

Practical implications– This study emphasizes the critical shift in HR professionals' roles from operational to strategic partners, facilitating the realization and enhancement of agile competencies that enable organizations to adapt to environmental challenges.