The Strategic Role of Human Resource Management in Building Competencies and Bridging the Skills Gap Towards a Green Economy

Nabeela Ebrahim Essa; Rahayu Mardikaningsih

Authors

Nabeela Ebrahim Essa Maastricht School of Management, Netherlands
Rahayu Mardikaningsih Universitas Sunan Giri Surabaya, Indonesia

Keywords:

green economy, skills, human resource management, skills development, sustainability, workforce training

Abstract

The implementation of a green economy has become an urgent necessity amid growing global awareness of the importance of sustainable development. This study provides a comprehensive analysis of how human resource management (HRM) can identify essential skills and develop effective training strategies to prepare a competent workforce for the transition to sustainability-based economic sectors. A literature review approach was employed to assess workforce competency gaps, implementation challenges, and best practices in skills development across various industries, particularly in renewable energy and waste management. The results indicate significant challenges, including the gap between industry needs and worker competencies, lack of educational policy support, limited training resources, and suboptimal cross-sectoral collaboration. To address these barriers, HRM must adopt an integrated approach—developing technical, managerial, and social skills—while building an organizational culture centered on sustainability. Managerial implications emphasize the importance of long-term investments in training, the adjustment of recruitment and performance assessment policies according to green principles, and the strengthening of strategic partnerships with educational institutions and other stakeholders. Thus, the development of green skills not only enhances organizational competitiveness in the global market but also significantly contributes to sustainable development goals.

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