HCM's Role in Driving Innovation and Creativity in the Workplace

Dearni Gresya Br Damanik (Management Study Program, Universitas Pembangunan Panca Budi Medan, Indonesia)
M. Chaerul Rizky (Management Study Program, Universitas Pembangunan Panca Budi Medan, Indonesia)

International Journal of Accounting, Business, and Economic Policy
Vol. 1 No. 2 (2025): April

This research aims to examine the role of Human Capital Management (HCM) in encouraging innovation and creativity in the workplace. Using a qualitative approach through in-depth interviews and observations in several organizations, this research finds that effective HCM practices, such as skills development, a supportive work culture, and reward systems, make a significant contribution to increasing employee innovation and creativity. The research results show that an inclusive and collaborative environment encourages employees to innovate, while training and skills development improves their ability to generate new ideas. These findings provide insights for managers and organizational leaders to integrate HCM practices in their innovation strategies.