Decisions around the implementation of circular business models often focus on the use of natural capital and the optimisation of technical capital. Much less attention is given to how circular business models impact jobs and the world of work, and even less to what this means for HR practices. This briefing lays out key considerations for HR professionals interested in or working with circular business models. The briefing further identifies steps HR professionals need to take to move towards truly circular HRM, ranging from understanding skills needs to rethinking performance management.

HRM practices that are well aligned with circular business models will be an important precondition for sustainable and competitive organisations. HR can play a key role in developing, reinforcing and shifting the culture of organisations towards more sustainable, circular principles. By linking workers, managers, and business departments, HR professionals can:

1. Provide support through long-term strategy

2. Bridge the skills gap

3. Manage projects and mentor workers

4. Promote circular values

5. Build and contribute to a circular HRM network

6. Promote Industry 5.0