How to Improve Small and Medium-Sized Enterprises Profitability by Practicing an Efficient Human Resources Management

In The European Union’s country members, small and medium-sized enterprises (SMEs) play an essential role in economic life, having special features that make adaptation process to the contemporary economy easier. Small and medium sized enterprises (SMEs) are the most dynamic and vital factor of progress in the contemporary society, main generator of economic performance and substance in any country, employment opportunity provider for most of population, major contributor to the national budget, and engine to improve the living standard of the population. SMEs represent 99% from all enterprises, drawing up the main human resources aglomeration. In the contemporary economic context, SMEs should act as learning entities, by developing the most important resources they own: the human resources. Human resource development (HRD) has gained a permanent role within SMEs, agencies and nations, increasingly not only as an academic discipline, but as a central theme in development area. Being a combination of training and education, in a broad context of adequate human resource policies, HRD ensures the continual improvement and growth of both individual and organization.