Sustainability of Human Capital Efficiency in the Hotel Industry: Panel Data Evidence

Abstract

The COVID-19 pandemic resulted in significant changes to business operations, particularly addressing human resources and their role within the firm. This study aims to assess the sustainability of human capital efficiency in the hotel industry, including the early effects of the COVID-19 pandemic. In accordance with the value-based approach, the human capital efficiency (HCE) coefficient was calculated on a sample of 157 hotels in a five-year period, including the year in which the pandemic was declared. We employed a quantitative methodology based on the VAICTM method of assessing human capital efficiency and Annual Compounded Growth Rate (ACGR) to evaluate the trend of human capital efficiency. The research results showed a change in the trend of human capital efficiency in the hotel industry in 2020, as well as a change in the mean value of the HCE coefficient. Hotels with a higher category demonstrated a better ability to create value using human capital. The contribution of this work is represented in the quantification of the sustainability of human capital efficiency in the observed period and the early impact of the COVID-19 pandemic on the value-added efficiency of human capital in the hotel industry.

Human Capital Efficiency and Firm Performance of Quality-Certified Firms from EFQM Excellence Model: A Dynamic Panel Data Study

“…Hence, HCE is computed by the ratio of value-added and HC by employing firm-level data to explore the impacts of HCE on firm performance. With or without using the VAIC model, many authors explored the relationship between HCE and firm performance (Slavković et al, 2023;Bataineh et al, 2022;Aybars and Mehtap, 2022;Xu and Li, 2020;Nguyen, 2020;Bayraktaroglu et al, 2019).…”

“…The relationship between HCE and the firm's perfor-mance has been examined by numerous authors. In the prior literature, most scholars have reported a positive relationship between HCE and the firm's performance (Maji and Goswami, 2017;Chowdhury et al, 2019;Tran and Vo, 2020;Nguyen, 2020;Slavković et al, 2023;Faruq et al, 2023). On the other hand, a few scholars have reported an insignificant relationship between HCE and the firm's performance (Smriti and Das, 2018;Puntillo, 2009;Firer and Williams, 2003).…”

Managing Employee Performance in the Agricultural Sector: Importance of Human Capital Development

“…The importance of human capital for agricultural firms can be explained on the basis of the theory of human capital and the resource-based view. According to human capital theory, individuals possess skills, abilities, and knowledge that provide economic value to an firm (Slavković, Ognjanović, 2018). The same theory suggests that management's decision to invest in human capital is based on monitoring and comparing potential future benefits with the cost of human capital (Ming Chen, Jun Lin, 2004).…”

“…The same authors state four key attributes of human capital that must be considered when managing this capital: flexibility and adaptability, improvement of individual competencies, development of organizational competencies, and individual employability (Garavan et al, 2001). Slavković and Ognjanović (2018) point out that a particularly important characteristic of human capital is that it is not owned by the firm, since the knowledge, skills, and know-how of employees can not be separated from the individual. Therefore, leaving the firm, temporarily or permanently, implies that the firm remains without a part of its human capital (Slavković, Ognjanović, 2018).…”

“…Slavković and Ognjanović (2018) point out that a particularly important characteristic of human capital is that it is not owned by the firm, since the knowledge, skills, and know-how of employees can not be separated from the individual. Therefore, leaving the firm, temporarily or permanently, implies that the firm remains without a part of its human capital (Slavković, Ognjanović, 2018).…”