Technology outsourcing in human resource activities in hospitality

Abstract

Purpose– Human resource technologies in the hospitality industry are a means by which an organization can gain competitive advantage technologically. The technology-oriented human capital embedded in an organization's human resources is a source of sustainable competitive advantage in an industry that is heavily dependent on people and makes it unique and inimitable. This study uses data collected on 34 different practices to provide a snapshot of current practices in the hospitality sector, which can be used to benchmark individual technology operations against the current norms. The paper aims to discuss these issues.Design/methodology/approach– This paper uses survey data collected from dozens of managers working in the hospitality sector on the level of outsourcing of 34 different HRM practices to provide a snapshot of current practices in the hospitality sector.Findings– Starting with the theoretical predictions of total cost of ownership and transaction cost analysis, multiple regression models are used to test whether or not human resource outsourcing (HRO) technology-related activities in hospitality are associated with negative outcomes, such as higher voluntary turnover of good employees.Research limitations/implications– This is one of the first articles to explore HRO technology in the hospitality sector and the findings suggest that what an organization outsources matters.Practical implications– These results can be used by hospitality managers to benchmark their operations against the current HRO technology norms.Originality/value– It is expected that the type of HR technology-related activities outsourced in hospitality will affect how employees and employers view and react to HRO in hospitality.