Author: Thio, Sienny
Title: Human capital in the Indonesian hotel industry : issues and challenges
Degree: DHTM
Year: 2018
Subject: Hong Kong Polytechnic University -- Dissertations
Hospitality industry -- Personnel management
Hotels -- Indonesia
Department: School of Hotel and Tourism Management
Pages: xii, 230 pages : color illustrations
Language: English
Abstract: The significant growth of hotel construction and development across Indonesia has generated demand for human resources to fill job positions. Intense competition has been evident amongst hotel operators as new properties have opened and the operators have sought to attract a qualified workforce, thereby increasing employment opportunities. As the world's fourth most populous country, Indonesia should benefit from its extensive supply of labor. Unfortunately, the Indonesian hotel industry faces serious problems when attempting to attract and to retain a qualified and competent workforce. In addition, the establishment of ASEAN Economic Community (AEC) in late 2015 presented another challenge for the hotel industry. Competition for labor amongst AEC members has become vigorous as skilled employees now have authorization to work across the Southeast-Asia region. Competition for jobs is expected to intensify across the various ASEAN countries (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam). Relative to its counterparts in other ASEAN countries, the Indonesian workforce is deemed to be unprepared for the growing competition. The reputation of its labor force is relatively low. Taking account of these various concerns, the main objective of this study is to explore and investigate the major human-related issues and challenges encountered by Indonesia's hotel industry, including coverage of the various human resource functions (recruitment, retention, training and development, and employee engagement). The root causes are examined and analyzed in search of prospective solutions as a response to the issues and challenges that have been identified. Employee work values and their perceptions of hotel employment are discussed and are supplemented by a portrait of the Indonesian hotel workforce. Moreover, the impact of the AEC on human capital in the hotel sector is also examined to anticipate the prospect of foreign workers entering Indonesia.
This study is an example of applied research because it focuses on providing solutions based on real issues and challenges. A concurrent mixed methods approach involving a qualitative and quantitative study has been employed with a view to generating comprehensive data analysis. The main qualitative data were obtained through a series of in-depth semi-structured interviews with 20 hotel leaders in Surabaya (Java) and in Bali. The adoption of this approach allowed the researcher to investigate current and future human capital issues and challenges confronting Indonesian hotel operators. The impacts of AEC were further investigated through the responses of hotel leaders to the prospect of a free flow of labor across ASEAN. Meanwhile, to obtain extensive insights into human capital within the Indonesian hotel industry, a quantitative approach was also applied to examine employee work values and their perceptions of working in the industry. A total of 316 self-administered questionnaires were collected from hotel employees in Surabaya and Bali. The combination of research methods allowed the researcher to capture the full range of issues and challenges that are being encountered by hotel leaders and to provide prospective solutions based on employee work values and characteristics. The interview findings identified recruitment, strong competition, employee issues, retention, government regulation, and local community as the top current issues and challenges being confronted by the Indonesian hotel industry. Such concerns are likely to continue into the future. Foreign workers and training issues are emerging challenges because of AEC. Additionally, five key drivers of those prevalent concerns were observed, namely: (1) significant hotel development; (2) underqualified workforce; (3) government regulation; (4) authority of Banjar; and (5) the impact of AEC. Most of the study respondents agreed that the implementation of AEC is not yet a threat to Indonesian hotel companies. Though the extension of AEC has not had any impact to date, it is likely to be serious problems in the future. Moreover, the work value attributes that hotel employees perceived as most important were: (1) job security; (2) benefits; (3) good salary; (4) career advancement; and (5) continuously learning. The study also revealed that Indonesian hotel employees do not have a negative image of working in the industry and this is highlighted as a different conclusion from many previous studies conducted in different settings. It is anticipated that the exploration of current and emerging human capital issues and challenges in this study will enhance the awareness and anticipation of hotel operators, academics, and government officials in dealing with present and upcoming concerns. The proposed solutions may be employed as a source of reference and information when preparing qualified and talented manpower into the future.
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Please use this identifier to cite or link to this item: https://theses.lib.polyu.edu.hk/handle/200/9852