Workshop on Human Capital Management in SMEs

HCM transforms traditional HR functions such as recruitment, training, payroll, and performance management into strategic opportunities to enhance employee engagement, productivity, and overall business value. HCM views the workforce not merely as a cost of doing business but as a core asset whose value can be maximized through strategic investment and management. By focusing on human capital as a source of value creation, business leaders are encouraged to develop and implement workforce strategies closely aligned with corporate goals. SMEs, which account for around 70% of employment in APO members, face common workforce challenges including skill gaps, weak talent development systems, and limited governmental support for capability building (2025 APO Report on SME Productivity and Innovation in Asia). HCM strategies could serve as a solution for SMEs to address these challenges, enabling them to remain competitive amid rapid technological change and intensifying global competition.

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