Participatory methods can play a crucial role in addressing labor shortages in small and medium-sized enterprises (SMEs) by strengthening proactive work ability management competence. In a higher education institute project, these methods have been utilized to design work ability support policies tailored for SMEs. The project provides direct support to local SMEs, giving them tools and strategies to enhance work ability through improved work ability management skills and work ability support policies.

The project involves nine SMEs from the tourism, catering, and metal industries in the South Savo region of Finland. Proactive work ability management aims to meet future work ability needs by embedding dialogue that considers the needs of the individual, community, and organization in supporting work ability. Competence development is deeply embedded in workplace culture, aligning with the company's developmental phase and operational activities. As modern work increasingly demands cross-functional and cross-sectoral skills, SMEs benefit from a development approach that prioritizes experience-sharing and interactive learning.

Participatory enterprise development emphasizes dialogue, mutual learning, and the role of supervisors in shaping policies. Dialogue-based supervisor development forums are held in SMEs to strengthen the implementation of work ability support and to encourage mutual learning through exchanges of experience among supervisors. These forums provides a platform for testing proactive work ability management policies, such as proactive work tailoring and collaboration with occupational health services.

Engaging supervisors in these forums encourages change in the work ability management process. The process proposed for SMEs start with the recording of legal activities and the clarification of the roles of supervisors. These legal activities will help SMEs to promote work ability awareness, occupational safety and the prevention of substance abuse. Activities are based on SMEs needs and research. The impact of these activities is measured qualitatively and quantitatively at enterprise level. Qualitative feedback is collected through supervisor development forums and quantitative feedback through surveys. The cost-effectiveness of work ability support in SMEs will be measured using SROI analysis.

The experiences of the supervisor development forums have been taken to team meetings and the new practices have spread throughout the enterprise. Findings from the forums are integrated into team meetings, allowing new practices to spread throughout the organization. Participatory methods in SMEs can effectively enhance proactive work ability management competence, implement policies, and give supervisors the tools to make long-term improvements.

Keywords: Work ability management, SMEs, competence development, participatory methods.