Globally, small and medium-sized businesses (SMEs) are acknowledged as a key contributor to sustainable economic growth.
With the vision of Industry 5.0, which goes beyond efficiency and productivity as the only goals to more sustainable, human-centric, and resilient economies that work for people, societies, and the environment, many strategies are adopted to help improve performance and help secure their long-term prosperity. A SME must undergo a significant transformation and a fundamental shift in its organizational culture in order to transition to Industry 5.0. The process of reevaluating company models, ecosystems, and managerial techniques that will impact their performance in the direction of a better, more equitable society is greatly aided by human resources management, or HRM.
Various strategies have been introduced by HRM of businesses; however, as the Fifth Industrial Revolution is still in its early stages, actual practices are still in their infancy. With employees at the center and a mindset that empowers them to create new business prospects, this project aims to explore emotional intelligence as a valuable tool for HR management to ensure the transition of SMEs to Industry 5.0.
In order to rebuild a workforce in the context of Industry 5.0, which is defined by motivation, job satisfaction, commitment, flexibility, ethics and mindfulness, responsiveness, thinking critically and radically, in and out of the box, and placing their well-being at the center of business systems, an innovative VET training model must be built. This will equip HR managers with all the EI skills, abilities, and competences needed. The ultimate goal is to achieve social goals beyond employment and growth in order to provide prosperity robustly for the sustainable development of all humanity.