Innovative Approach to Improving the Human Capital Management System in Small Businesses

This paper explores best practices for enhancing human capital management (HCM) in small firms. It outlines key investment streams that provide a structured approach for assessing the market value of human capital within local enterprises. Additionally, a framework for the development, retention, and effective deployment of human capital is proposed to improve the competitiveness of small businesses. To enhance financial performance, organisations are encouraged to implement innovation and investment-based human capital management practises, recognising that employees are valuable human capital resources.