This study investigates the integration of Yao ethnic cultural history into sustainable jewelry design and its implications for human resource planning, organizational management, and employee engagement techniques within creative sectors. The research emphasizes new approaches to improving employee well-being, work happiness, and organizational commitment by integrating cultural authenticity with circular economy concepts. The study specifically aims to (1) use Yao cultural elements to strengthen the organization’s identity and boost employee pride, (2) evaluate how consumers respond to circular economy ideas and how these ideas impact employee motivation and performance, and (3) explore how sustainability efforts based on culture affect consumer behavior and the morale of the workforce. We used a mixed-methods approach, combining qualitative interviews with fifteen experts in design, sustainability, and cultural heritage with a quantitative survey of 240 participants. Research indicates that using Yao motifs—such as traditional needlework and nature-inspired designs—enhances market attractiveness and promotes more employee alignment with business ideals, hence improving satisfaction and performance. The increasing customer acceptance of recycled and upcycled items enhances employees’ sense of purpose and engagement. These findings highlight the importance of incorporating sustainable HR practices, including culturally oriented training and open ethical principles, to enhance labor relations and foster equity. Utilizing cultural heritage in design innovation serves as a strategic instrument to enhance human capital and promote long-term organizational sustainability.