Center for Knowledge Management, North Macedonia

ARIS FORMAZIONE E RICERCA SOCIETA COOPERATIVA , Italy

SGS TECNOS, Spain

VIESOJI ISTAIGA KAUNO MOKSLO IR TECHNOLOGIJU PARKAS, Lithuania

People Management Network, Belgium

NATIONAL UNIVERSITY OF IRELAND GALWAY, Ireland

FUNDACION EQUIPO HUMANO, Spain

In December 2015, the European Commission adopted an action plan to accelerate Europe's transition towards a circular economy, boost global competitiveness and promote sustainable economic growth and create new jobs. This action plan involves the implementation of 54 measures to "close the loop" in the product life cycle, from production and consumption to waste management and the raw materials market. In March 2019, the European Commission declared that all 54 measures have been completed or are in the process of being completed. The review of the action plan has led to the creation of new jobs, particularly in the sectors of the circular economy (reuse and recycling) which employed 4 million workers in 2016, an increase of 6% compared to 2012. The Commission estimates that the so-called "circular" activities, such as repair, reuse and recycling, generated around 147 billion euros in added value, whereas they represented 17.5 billion euros in investments. However, the Commission also points out that although the circular economy is an irreversible global trend, much remains to be done to intensify action at EU level in order to fully close the loop and ensure the competitive advantage it brings to European companies. Some areas of business action are not covered by the Action Plan and could be further explored to complement the EU's Circular Agenda. Indeed, when we talk about the circular economy we are referring to the notions of natural capital (better management of resources/ reduction in their use), physical or technical capital (processing, production, recycling); but not much to the concept of human capital. However, the transition to a circular economy will not be complete if the human dimension is forgotten. A new approach to human resources management must be adopted so that the circular economy can also respond to the social problems that the linear economy produces (unemployment, skills mismatch, stress and depression in the workplace, work of ageing populations, etc.).

What does this transition mean for the human resources (HR) sector?

In a circular economy, workers need to develop a long-term and interdisciplinary thinking. Creativity, consciousness and proactivity will be essential for the HR of the future. The development of the HR according to circular economy principles is an important precondition for a sustainable and competitive economy. A circular human resources management (HRM) can plan a durable and sustainable design and maintenance of skills in the firm in contrast with the current linear model of hiring, maintaining, overloading and dismissing. If a circular HRM means limiting the leakages of talent and skills and regenerating the human capital, new business models and HRM practices are needed. Circular HRM at supporting the transition of European SMEs of the eco industry sector from a traditional, linear HRM model, to a circular HRM model that enhances the regeneration of skills and competences at workplace and favours circular and sustainable businesses and organizational models.

The project activities are:

• Highlighting Circularity into companies
• Training course and trainer guide development
• e-training and knowledge-sharing platform development
• Piloting of the on-the-job and online training course 

Circular HRM aims to support the transition of European SMES, particularly those in the ecoindustries sector, from a linear to a circular model, which encourages the regeneration of skills in the workplace and favours circular businesses and organisational models. Eco-companies provide innovative products and services that try to positively influence the natural environment (OECD).

They are a suitable target as they are already committed to certain principles of the circular economy.

The implementation of circular practice by HRMs will allow them to increase their competitive advantage. The project will provide upskilling opportunities for HR managers of SMES of the eco sector, tackling the cross-national issue of skills mismatches and ageing workforce through the development of circular HRM training. HR's circular practices will have a positive impact on:

• EU SMES: avoid the risk of skills mismatches
• EU market: Creating jobs without redundancies the human capital already present
• EU economy and environment: For the sustainable development of companies and eco-companies.