IMPLEMENTATION OF SUSTAINABLE HUMAN RESOURCE MANAGEMENT IN MICRO, SMALL AND MEDIUM ENTERPRISES

Abstract

MSMEs have an important role in economic development, but are often faced with challenges related to optimal human resource management. Therefore, this research aims to investigate and analyze the implementation of sustainable human resource management in micro, small and medium enterprises (MSMEs). This research uses a qualitative approach with descriptive methods.  The research results show that the implementation of Sustainable Human Resource Management (MSDMB) in Micro, Small and Medium Enterprises (MSMEs) has a positive impact on sustainability aspects. MSMEs that are aware of the importance of sustainability tend to adopt practices such as involving employees in decision making, optimizing energy use, and supporting social activities in local communities. Employee well-being is also a key concern, providing healthcare facilities, work-life balance policies and incentives for those who contribute to sustainability initiatives. Sustainability performance reporting was also found to increase corporate transparency. Overall, the implementation of MSDMB in MSMEs not only creates a positive impact on business operations, but also contributes to economic growth and sustainability at the local level.