The Influence of Employee Empowerment, Soft Skills and Hard Skills Towards Employee Performance in Hotel/ Hospitality Industry

Anthonius/ The Influence Of Employee Empowerment, Soft Skills And Hard Skills Towards
Employee Performance In Hotel/ Hospitality Industry
THE INFLUENCE OF EMPLOYEE EMPOWERMENT, SOFT SKILLS

AND HARD SKILLS TOWARDS EMPLOYEE PERFORMANCE IN
HOTEL/ HOSPITALITY INDUSTRY
Anthonius
Universitas Kristen Maranatha
Email: anthony_partners@yahoo.com
ABSTRACT
The growth and competition of Indonesia’s hotel industry, especially during the Covid-19
pandemic, has hardly pushed them to maintain their corporate and employee performance.
The factors related to human resource and hospitality industry, which cloud significantly
affects the employee’s performance are employee empowerment, soft skill and hard skill. This
research is a quantitative research with hypothesis test. The samples used are 100 active
employees of 4 stared rated hotels. This research uses questionnaire as the research
instrument and the data analysis conducted by applying Structural Equation Modeling
(covariances based SEM). This research contributes to Indonesia’s hotel industry by stating
that while the employee empowerment factor has no impact toward the employee
performance, both the hard and soft skill factors are positively impacting the employee’s
performance in Indonesia’ hotel industry.
Keywords: employee empowerment, hard skill, soft skill, employee performance, Indonesia
INTRODUCTION inline with as study which states that

human resource contributes to the
The competition between ASEAN company’s competitiveness, enhancing
countries including Indonesia has productivity and increasing profitability
becoming fiercer than ever (Plummer, (Gull et al., 2012; Saleem & Amin, 2013).
Petri, & Zhai, 2014), this include the Human resource has becoming the
competition in both hotel and tourism most important aspect of hotel industry in
industries. In Indonesia, 4 and 5 star rated the evolving 4.0 era, as it is a determining
hotel industry seen significant growth for factor that affects the quality of service
the past couple of years. The ongoing delivery. The employee’s performance, in
Covid-19 pandemic has forced the relation to the human resource quality,
corporations to struggle in effort to survive believed to be a factor that require
and remain competitive. One major aspect attention and carefully managed in the
that would determine the success of a hotel industry (Pragiwani et al., 2018),
company/ organization is superior human especially the employees that directly
resource with good performance (Singh, dealing with the customers, as it affects
Hu & Roehl, 2007; Sonnentag, 2000). The costumer’s satisfaction and perception
great human resource in a company has toward the provided service (Hartline &
becoming an important asset in the Ferrell, 1996).
hospitality industry, thus it is very The efforts taken to improve the
important to manage both the employee’s performance of an employee have always
skills and knowledge to build the long been an interesting issue to discuss. There
term superior competitiveness of a are lots of factors and researches that
company (Lytras, 2008). This statement affecting an employee’s performance. The
14
Competitive Jurnal Akuntansi dan Keuangan, 5(2), 2021
interesting factors to look at in hospitality Manzoor, 2017; Degago, 2014;

industry are employee empowerment and Suryadewi, et al., 2014; Tetik, 2016;
skills as those variables are closely linked Yilmaz, 2015). The gap in this research is
to human resource quality and behavior whether the employee empowerment in
within a company especially in the hotel Indonesia’s hotel industry impacting the
industry. employee’s performance.
In conjunction to the ongoing
pandemic situation and the requisition of H1: Employee empowerment has positive
hotel industry in order to survive during impact toward the employee’s
these time, employee performance has performance in Indonesia’s hotel industry.
become one of the most observed factor.
The purpose of this research is to test Hard Skill
whether the employee empowerment, hard
and soft skills are affecting the employee’s The other factor that has negative
performance in Indonesia’s hotel industry. impact towards the employee’s
performance level in a company or
organization is the discrepancy of the
LITERATURE REVIEW AND employee’s knowledge and skills level,
HIPOTHESYS DEVELOPMENT where the hard skills were more applauded
in the company (Ibrahim, Boerhannoeddin,
Employee Empowerment & Bakare, 2017). Most companies are
more prioritizing professional certification
Employee empowerment is more and training programs in technical skills
suitable to be implemented in a highly which are hard skills, instead of human
competitive business environment that skills which are soft skills because the hard
have decentralized organization structure skills are more directly relevant towards
whereas the authority distribution doesn’t the daily employees’ activities. Some other
lie on just one division, one of them is the researches states that the importance of
hotel industry (Meyerson & Dewettinck, hard skills could elevates the individual
2012). The employee empowerment itself ability in reaching the broader vision and
stands as a form of authority or dominion making relation with work partner (Baum,
diversion from the highest level to the 2008). Hard skills is a part of skills series
lower level of management in a form of required in a job, it is defined as a
the responsibility to make decisions. The technical aspect related skill to perform
employee empowerment has been several tasks in a job (Rainsbury et al.,
introduced in some organizations to 2002). Poisson-de Haro & Turgut (2012)
enhance the customer satisfaction, states that hard skills which consist of
escalating competitive predominance and technical and conceptual skills are
performance (Carless, 2004:405; Hamed, important to managers. Other studies that
2010:65). It has been defined as the measure the influence of hard skills toward
development of self-efficacy concept employee performance conclude that hard
where empowerment is an act in intention skills have significant positive impact
to enhance the self-efficacy of toward employee performance (Rusady,
organization members by identifying their 2016). Many different research results that
inabilities, then followed by the act of states either the positive or negative
eliminating them through organizational impact of hard skills, are becoming the
practices (Conger & Kanungo, 1988). next base of hypothesis on this research.
Many studies concludes that employee
empowerment has positive outcomes H2: Hard skill has positive impact toward
toward employee performance (Ahmad & the employee’s performance in Indonesia’s
15
hotel industry. skills could coause the soft skills gap to

Soft Skill emerge (Robles, 2012). Soft skills have an
important role in determining the success
The term of soft skills identical with performance of a company or
personal skill related to attitude and organization. In the 4.0 revolution era, soft
behavior (Gibbons & Lange, 2000; Moss skills have becoming very important in the
& Tily, 1996). Soft skill is an important current work life, whereas based on the
both intra and inter personal (sosio- LinkedIn report with title: Future of Skills
emosional) for personal development, 2019, states that work force with good soft
social participation and the success at skills are still very much needed. The
work (Kechagias, 2011). Soft skills survey result indicates that 47% of the
include communication skill, the ability to respondents answer that soft skills are
work in team and adaptation skill. The required because they are unique human
interest on soft skills mostly focuses on ability in the middle of automation.
communication dan its role in building the National Association of Collages and
relationship with customers including in Employeers research states that generally
service industry (Nickson et al., 2005). the workforce user requires skills that
Rekha (2014) states that soft skills is a comprises of 80% soft skills and 20%
term which mostly related to someone’s hard skills. The late research also indicates
intellectual intelligence and the prime part the positive impact of soft skills toward the
of their individual contribution to gain the employee performance (Homer, 2001;
success of an organization. Organizations Ibrahim, Boerhannoeddin & Bakare, 2017;
those directly facing their customers, Kantrowitz, 2005; Weber et al., 2009).
generally more successful if they train The next question would be how big is the
their staff to use their skills effectively influence of soft skills in hotel industry.
(Matteson et al., 2016). The other Hypothesis in this research
The study about the importance of states that
soft skills in work environment finds that
the gap of soft skills could cause the high H3: Soft skills has impact toward the
unemployment statistic (Seetha, 2014). employee’s performance in Indonesia’s
Other study states that work force with hotel industry.
expert technical skills but lack of soft
EMPLOYEE
EMPOWERMENT H1
(X1)
HARD SKILLS H2 EMPLOYEE

(X2) PERFORMANCE
(Y)
SOFT SKILLS
(X3) H3
Figure 1. Research Model
16
RESEARCH METHODOLOGY performance, then the structural equation

modeling was used. Structural equation
The applied research methodology modeling has two forming models, those
on this research is quantitative research are measurement model and structural
with hypothesis test. The population used model. The measurement model defines
on this research is all the 4 star rated hotels the variance proportions of each manifest
in Indonesia, with 100 samples taken of variables (indicator) which can be
those whom are still actively working at explained through the latent variable.
the premises. The instrument used was
questionnaire developed from the former Measurement Model Evaluation
researches with related with variables of
employee empowerment, soft skills and Measurement model is a model that
hard skills (Yilmaz, 2015; Hendarman & connects the latent variables with manifest
Cantner, 2017; Koopmans et al., 2014). variables. Through the measurement
The digital questionnaire filling method model, it would be determind which
was used and the samples taking was from indicator is more dominant in reflecting
January to March 2020 during the latent variable. According to Hair et al,
pandemic period. Structural Equation (2014:605) if the manifest variables has
Modeling (covariance based SEM) were factor loading value less then 0,50 then the
used to test the relation between the corresponding variable is advised to be
exogenous variable (independent) towards removed from model. There are 4 latent
the endogenous variables (dependent). variables and 38 manifest variables on this
SEM is a multivariate technique that research. The employee empowerment
combines the analytic factor with latent variable consist of t 12 manifest
regression which enables the researcher to variables, the hard skill latent variable
measure both the variables and latent consist of 8 manifest variables, the soft
variables (either using the measurement skill latent variable consist of 8 manifest
theory approach or structural theory variables and the employee Performance
approach) altogether (Hair et al., 2014). latent variable consist of 10 manifest
variables.
Using the Robust maximum
RESULT likelihood estimating method, the
employee empowermentt, hard skill and
In line with the purpose of the soft skill influence towards the employee
research which is to test the influence of performance full model lines were
employee empowerment, hard skill and obtained as presented on picture 2:
soft skill towards the employee
17
Figure 2. Preliminary Standard Coefficient Full Model
Through the loading factor shown on fator less than 0,5 which SS3 and SS4.
picture 1, it can seen that there are 6 Lastly in employee performance (EP) latent
indicators of employee empowerment variable there are 2 indicators with loading
(EM) latent variable with smaller then 0,5 factor smaller than 0,5 which are EP3 and
loading factor which are EM1 to EM6. In EP7.
hard skill (HS) latent variable there is 1 Furthermore, the indicators with
indicator with loading factor less than 0,5 loading factor less than 0,5 were removed
which is HS6, in soft skill (SS) latent from the model and the new estimation
variable there are 2 indicators with loading result is presented on picture 3 as follows:
18
Figure 3. Final Standard Coefficient Model
As shown in picture 3, all the variables have the high validity degrees,
remaining indicators have loading factor then the construct reliability and variance
more than 0,5 and stated to be valid to extracted calculations were performed.
measure each of the latent variables. Here are the calculation result of construct
Furthermore, to find out whether the reliability and variance extracted for each
indicators used to measure the latent latent
Table 1. Construct Reliability (CR) and Average Variance Extracted (AVE) of Each
Latent Variable
Indicator
EE HS SS EP
1 - 0,572 0,503 0,678
2 - 0,700 0,617 0,558
3 - 0,724 - -
4 - 0,691 - 0,739
5 - 0,624 0,755 0,573
6 - - 0,592 0,615
7 0,743 0,611 0,630 -
8 0,646 0,674 0,657 0,579
9 0,719 - - 0,758
10 0,710 - - 0,714
11 0,699 - - -
12 0,714 - - -
CR 0,856 0,842 0,796 0,856
AVE 0,498 0,434 0,397 0,430
19
According to Hair et al, (2014:605) latent variable. Further more, the construct
the satisfying considered composite reliability value of soft skill latent variable
reliability (CR) is bigger than 0,70. On (0,796 is higher than recommended value
employee empowerment latent variable, of 0,70.
the average variance extracted value of Lastly, in employee performance
0,498 shows that averagely 49,8% of the latent variable, the average variance
information excisted in each indicator can extracted value of 0,430 shows that
be represented through the employee averagely 43,0% of the information
empowerment latent variable. Further excisted in each each indicator can be
more, the construct reliability value of represented through the employee
employee empowerment latent variable performance latent variable. Further more,
(0,856)is still bigger than the the construct reliability reliability value of
recommended value of 0,70. In hard skill employee performance latent variable
latent variable, the average variance (0,856) is higher than recommended value
extracted value of 0,434 shows that of 0,70.
averagely 43,4% of the information
excisted in each each indicator can be Goodness of Fit Test
represented through the hard skill latent
variable. Further more, the construct Goodness of Fit test were performed
reliability value of hard skill latent to finds out whether the obtained model
variable (0,842) is higher than appropriately picturing the interelation of
recommended value of 0,70. the studied variables so that it can be
In soft skill latent variable, the categorized as the appropiately fit model.
average variance extracted value of 0,397 (Hair et. al, 2014:576). The goodness of
shows that averagely 39,7% of the fit test in structural equation modelling can
information excisted in each each indicator be seen based on the criterias shown below
can be represented through the soft skill
Table 2. Goodness of Fit Result
Goodness of Fit Measurment Estimated Result Value Note

Chi-Square 494,59 (p-value 0,000) Not Fit
RMSEA 0,075* Fit
RMR 0,039* Fit
GFI 0,683 Not Fit
NFI 0,852 Not Fit
NNFI/TLI 0,935* Fit
IFI 0,942* Fit
CFI 0,951* Fit
*fulfills the good model criteria
The test result using the 2 (chi- the smaller than 0,05 p-value shows that
square) formula , the value of 494,59 were 2 test is significant. Referring to the 2
obtained with p-value 0,000. According to test then it is concluded that the obtained
Hair et al, (2014:577) in sturctural model has not fullfilling the overall good
equation modeling the p-value less than criteria model. But still according to Hair
0,05 is not favorable. As presented above, et al, (2014:578), as it is pretty difficult to
20
obtain p-value higher than 0,05 on chi result shows that the obtained model
square test then, some other model fulfilling the criteria of goodness of fit on
goodness fit test were developed. the scale of RMSEA & RMR (< 0,08),
The other measurement method that and then IFI, TLI and CFI ( > 0,90) so
still have connection with uji 2 test is that in can be concluded that the result of
Root Mean Square Error of Approximation model estimation can be accepted, or in
(RMSEA). The appropriate value of other words the obtained empirical model
RMSEA was actually still being debated is aligned with theoretical model.
but according to Hair et al, (2014:579) if
the RMSEA value is lower than 0,08 then Structural Model Evaluation
the model can be accepted. On table 4.4 it
can be seen that the RMSEA value of After the measurement of each latent
0,075 is lower than 0,08 so that referring variable has been determined then it will
to the RMSEA value reference, the model be desribed the structural model used to
considered to be appropriate. It is also can study the influence of exogenous latent
be seen the value of Incremental Fit Index variable towards the endogenous latent
(IFI), Tucker-Lewis Index (TLI) and variable. Based on the result of data
Comparative Fit Index (NFI) all are bigger processing, the structural equation
then 0,9 and fullfilling the appropriate obtained would be tested as presented on
model criteria. The goodness of fit test the following table.
Table 3. Employee Performance Structural Model
Endegenous Exogenous Constructs R-square

Constructs EE HS SS
EP 0,041 0,416 0,506 0,732
(0,519) (1,980) (2,417)
Keterangan: Angka dalam kurung adalah nilai t-statistic.
Through the R-square value it was Based on the data presented in table
found that employee empowerment, hard 3 it can be seen that the tstatistic value of
skill and soft skill provides 73,2% of employee empowerment variable towards
influence towards employee performance. employee performance (0,519) and smaller
then tkritis (1,64). Because of the tstatistic is
Research Result Hypothesis Test smaller than tkritis, then on the error margin
of 5% it was decided to accept Ho while
Hypothesis 1: Employee Empowerment Ha was denied. So that based on the test
Influence Towards Employee result, it can be concluded that employee
Performance empowerment has no influence toward
employee performance in Indonesia’s
H0 : 1.1 ≤ 0 Employee empowerment hotel industry.
has no positive influence
towards employee Hypothesis 2: Hard Skill Influence
performance. Towards Employee Performance
Ha : 1.1 > 0 Employee empowerment
has positif influence H0 : 1.2 ≤ 0 Hard skill has no positive
towards employee influence towards employee
performance. performance.
21
Ha : 1.2 > 0 Hard skill has positive performance in Indonesia’s hotel industry,
influence towards employee it means that Indonesia’s hotel industry
performance. better be putting more attention in
Based on the data presented at table developing the employee’s skills factor
3 it can be seen that tstatistic value of hard because through hypothesis 2 and 3 tests,
skill variable towards employee it was proven that both the hard and soft
performance (1,980) and bigger than tkritis skills has positive influence towards the
(1,64). Because of tstatistic value is bigger employees in Indonesia hotel industry. In
than tkritis, so that with 5% of error margin the middle of hotel industry growth and
then it is decided to deny Ho so that Ha competitiveness, and in effort to survive, it
accepted. So that based on the test result, it is very necessary to enhance the
can be concluded that hard skill has employee’s performance quality. The hard
positive influence toward employee and soft skills factors should be prioritized
performance in Indonesia’s hotel instead of the employee empowerment
industry.This study provides empirical factor.
proof that better hard skill supporting
higher employee performance.
CONCLUSION
Hypothesis 3: Soft Skill Influence
Towards Employee Performance This research result contributes to
Indonesia’s hotel industry especially
H0 : 1.3 ≤ 0 Soft skill has no positive during the Covid-19 pandemic. The
influence towards employee research shows that the Employee
performance. Empowerment factor is not influencing the
Ha : 1.3 > 0 Soft skill has positive employee’s performance while both the
influence towards employee hard and soft skills positively influencing
performance. the employee performance in Indonesia’s
hotel industry. The suggestion for the for
Based on the data presented at table the next research is to be able to add more
3 it can be seen that tstatistic of soft skill samples in the test and also to add more
variable variable towards employee variables to be tested in the purpose of
performance (2,417) and bigger than tkritis studying their influence towards the
(1,64). Because of the tstatistic value is employee’s performance in Indonesia’s
bigger than tkritis, then on the error margin hotel industry.
of 5% it was decided to deny Ho so that
Ha accepted. So that based on the test
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24

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Anthonius/ The Influence Of Employee Empowerment, Soft Skills And Hard Skills Towards

Employee Performance In Hotel/ Hospitality Industry

THE INFLUENCE OF EMPLOYEE EMPOWERMENT, SOFT SKILLS

INTRODUCTION inline with as study which states that

interesting factors to look at in hospitality Manzoor, 2017; Degago, 2014;

hotel industry. skills could coause the soft skills gap to

HARD SKILLS H2 EMPLOYEE

Figure 1. Research Model

RESEARCH METHODOLOGY performance, then the structural equation

Figure 2. Preliminary Standard Coefficient Full Model

Figure 3. Final Standard Coefficient Model

Table 2. Goodness of Fit Result

Goodness of Fit Measurment Estimated Result Value Note

Table 3. Employee Performance Structural Model

Endegenous Exogenous Constructs R-square

Management, 20(7). , pp. 59-62.

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