This study aims to examine the effect of human capital development and career development on employee performance, with psychological empowerment serving as a mediating variable at PT. Decorindo Inti Alam Wood. This research employed a quantitative approach. The study population consisted of 313 employees of PT. Decorindo Inti Alam Wood. The sample size was determined using the Slovin formula with a 5% margin of error, resulting in 176 respondents. Data were collected through a structured questionnaire and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) to examine both direct and indirect relationships among the variables. The findings reveal that human capital development has no significant direct effect on employee performance, but it has a positive and significant effect on psychological empowerment. Career development has a positive and significant effect on both employee performance and psychological empowerment. Furthermore, psychological empowerment has a positive and significant effect on employee performance. The mediation analysis confirms that psychological empowerment significantly mediates the relationship between human capital development and employee performance, as well as the relationship between career development and employee performance. These findings indicate that investments in employee competency development and career advancement are more effective in improving performance when accompanied by enhanced psychological empowerment. Therefore, organizations are encouraged to integrate human capital development and career development initiatives with strategies that strengthen employees' sense of competence, autonomy, meaningfulness, and impact to achieve optimal performance.
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