The research, published in the Formosa Journal of Science and Technology, examined how HR analytics capabilities influence employee retention in the hospitality sector. The study focused on Hotel Vega Gading Serpong and involved 225 employees, supervisors, HR staff, and managers.
The findings are significant for industries facing high turnover rates, especially hospitality and service businesses where workforce stability directly affects customer satisfaction and operational performance. The study also reflects a broader global trend in which companies increasingly rely on people analytics to guide hiring, workforce planning, employee development, and retention strategies.
Data-Driven HR Is Becoming Essential
Digital transformation has changed how organizations manage employees. Human resource management is no longer limited to administrative functions such as payroll or attendance tracking. Companies are now collecting and analyzing workforce data to support strategic decision-making.
Despite this shift, many organizations still struggle to turn HR data into practical decisions that improve business outcomes. According to the study, the gap between having data and using it effectively remains one of the biggest challenges in modern HR management.
In labor-intensive industries such as hospitality, employee turnover creates significant financial and operational burdens. Recruiting, onboarding, and retraining new staff require time and resources, while frequent turnover can weaken service quality and organizational knowledge.
Wijil Nugroho of Universitas Matana explained in the study that HR analytics creates strategic value when organizations use workforce data to improve decision quality rather than simply generating reports or dashboards.
Study Examined HR Analytics in a Hotel Environment
The research used a quantitative survey approach with a time-lagged design. Data collection was conducted in two stages several weeks apart to reduce response bias and improve the reliability of the findings.
The first stage measured HR analytics capabilities, while the second evaluated HR decision-making quality and employee retention levels. Responses were analyzed using Partial Least Squares Structural Equation Modeling, a statistical approach commonly used in organizational and management research.
Participants included employees with at least one year of work experience who were familiar with HR processes inside the organization.
The study measured three main variables:
- HR analytics capabilities
- Quality of HR decision-making
- Employee retention
Researchers assessed whether the organization could integrate HR data effectively, use analytical dashboards, apply data insights to HR policies, and align analytics with business needs.
The study also examined how employees perceived HR decisions in terms of accuracy, consistency, objectivity, speed, and relevance.
Strong Link Between Analytics and Better HR Decisions
The research found a strong positive relationship between HR analytics capabilities and the quality of HR decision-making.
Organizations with stronger analytics capabilities were significantly more likely to produce accurate and objective HR decisions. The statistical relationship between HR analytics and HR decision quality showed the highest coefficient in the study model.
The findings revealed several important results:
- HR analytics significantly improved HR decision-making quality
- Better HR decisions increased employee retention
- HR analytics also directly improved retention, although indirectly through decision quality produced stronger results
The study reported that HR decision-making quality had a major influence on employees’ willingness to remain with the organization. Employees were more likely to stay when they believed HR policies were fair, timely, consistent, and relevant to workplace needs.
According to the findings, the strongest impact of HR analytics occurs when organizations transform workforce data into actionable HR strategies.
Examples include:
- career development planning,
- performance evaluations,
- promotion decisions,
- work scheduling,
- training programs,
- and retention interventions.
The study emphasized that analytics alone does not automatically improve retention. Data must be translated into meaningful organizational decisions.
Hospitality Industry Faces Growing Retention Challenges
Employee retention has become one of the most critical issues in the global hospitality industry. Hotels and service organizations frequently experience workforce instability because employees often seek better compensation, career growth, or workplace conditions elsewhere.
The research suggests that HR analytics can help organizations identify turnover risks earlier and respond more effectively to employee concerns.
By analyzing workforce patterns and employee behavior, management teams can design more targeted retention strategies and create more stable working environments.
The findings also support the growing movement toward evidence-based HR management, where business decisions rely on measurable workforce data rather than managerial intuition alone.
According to Wijil Nugroho from Universitas Matana, HR analytics should be understood as a strategic organizational capability involving technology, analytical competence, and management processes working together.
The study argues that organizations should not only invest in HR software systems but also strengthen the analytical capabilities of HR professionals. HR teams need the skills to interpret workforce data, identify trends, and convert insights into effective policy recommendations.
Implications for Businesses and Policymakers
The research has broader implications beyond the hotel industry. Companies in retail, healthcare, education, and technology sectors also face increasing pressure to improve employee retention and workforce sustainability.
The study suggests several practical actions for organizations:
- Build a data-driven decision-making culture
- Train HR staff in analytics and workforce interpretation
- Integrate HR dashboards into daily management processes
- Use employee data for career planning and retention strategies
- Continuously evaluate HR policies using measurable workforce outcomes
The findings may also help policymakers and educational institutions understand the growing importance of digital HR competencies in the modern labor market.
As organizations continue adopting digital management systems, the ability to transform workforce data into practical decisions is becoming a competitive advantage.
Author Profile
Wijil Nugroho is a researcher and academic from Universitas Matana, Tangerang, Indonesia. His research focuses on human resource management, HR analytics, evidence-based decision-making, and organizational performance in the digital era.
Source
Article Title: “The Role of HR Analytics Capabilities in Improving Employee Retention: Mediating the Quality of HR Decision Making (Case Study: Mercure Serpong Alam Sutera)”
Journal: Formosa Journal of Science and Technology (FJST), Vol. 5, No. 5, 2026
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