How Human Capital Development Drives Retention Through Service Recovery in Hotels

Isniar Budiarti; Mayar Mohammed Sabah Ali  Alkaabi

doi:10.15408/etk.v25i2.51824

Authors

Isniar Budiarti Universitas Komputer Indonesia https://orcid.org/0000-0002-6337-0733
Mayar Mohammed Sabah Ali Alkaabi Higher College of Technology https://orcid.org/0000-0002-1426-1055

DOI:

https://doi.org/10.15408/etk.v25i2.51824

Keywords:

human resource implementation, psychological safety, frontline capability, organizational attachment, service productivity

Abstract

Research Originality: This study advances hospitality retention research by integrating human capital development, line manager HRM delivery quality, work engagement, service recovery performance, and psychological safety within a single process-oriented framework. Its novelty lies in positioning service recovery performance as the behavioral bridge between Engagement and Intention to stay. Psychological safety also serves as a boundary condition in the engagement–recovery relationship.

Research Objectives: This study examines how human capital development contributes to employees' intention to stay through managerial HR delivery, work engagement, and service recovery performance, while considering psychological safety.

Research Method: A two-wave, multi-source survey generated 350 matched employee–supervisor responses from three- to five-star hotels in Bandung, Jakarta, and Bali. We analyzed the data using PLS-SEM with 5,000 bootstrap subsamples.

Empirical Results: Human capital development enhances the quality of line managers' HRM delivery, which in turn enhances work engagement and improves service recovery performance. Service recovery performance is the strongest predictor of intention to stay, while psychological safety strengthens the engagement–recovery relationship.

Implications: Hotels should integrate development investment with supervisor coaching, post-training follow-up, recovery authority, and psychologically safe incident-review practices.

JEL Classification: J24, J28, M12

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