PERFORMANCE OF HOTEL FRONTLINER EMPLOYEES IN VIEW FROM THE HRM AND HRD FRAMEWORK

Abstract

Tourism revenue dropped dramatically due to the COVID-19 pandemic.  Despite a significant increase in three- to five-star hotels in Surakarta City, Indonesia, in the last five years. Hotels as business organizations supporting tourism activities are required to be dynamic and use various strategies to win the competition. Hospitality service providers continue to develop strategies to improve customer service and face increasingly fierce competition. The availability of human resources is an important component to compete in the hospitality industry, especially at the forefront, which is where the hotel service system begins.  Variables part of the selected HRM Reward system and variables part of the selected HRD career development. This study aimed to examine and analyze the impact of reward systems, and career development, directly on the performance of frontline employees. A total of 289 respondents were selected from the entire population of frontline hotel services in 3 to 5-star hotels in Surakarta City. Sampling using a stratified random sampling technique. Data collection by questionnaire then modeling using Structural Equation Modeling (SEM). Data processing and analysis with a combination of SPSS version 26, and SMART PLS version 4.0. The results of this study have one accepted hypothesis. This study concludes that (i) Career development as an independent variable has a direct effect on employee performance with a p-value of 0.0012, (ii) Reward system as an independent variable does not have a direct effect on employee performance with a p-value of 0.6468.   A hotel's frontline employees will perform well if hoteliers provide opportunities for better career development rather than just rewards.