Human Resources Competency Development Strategy to Improve Performance

In Indonesia, the gap between the skills possessed by the workforce and those required by the job market is a major obstacle in improving organizational performance. This research aims to identify and analyze HR competency development strategies that can improve organizational performance, with a focus on industrial sectors in Indonesia and the application of sharia economic principles in HR development. The method used in this research is a qualitative approach with exploratory descriptive design and case study. Data were collected through in-depth interviews and participatory observation with HR managers, training implementers and employees in several organizations. Thematic analysis was used to identify key themes related to HR development strategies and their impact on organizational performance. The results show that effective HR competency development includes technical skills training that is in line with industry developments, as well as the development of soft skills such as leadership, communication, and the ability to work in teams. Factors that influence the success of competency development include supportive management policies, an organizational culture that reinforces continuous learning, and the use of technology in training. However, the main obstacles faced are the limited budget for adequate training and the gap between the training provided and industry needs. The implications of this study are highly relevant for policy makers and HR managers in designing more inclusive training programs based on Islamic economic principles, which can improve organizational performance and competitiveness in the global market.