Building human capital in the Dutch hospitality industry with a holistic EVP-model

Developing human capital can significantly improve the competitive position of businesses in the hospitality sector. Insights are generated through combing the Job Embeddedness framework with the Employee Value Proposition model to analyze 10 semi-structured interviews with restaurant owners/managers in the Netherlands to reveal best practices for building human capital through successful employee retention. The results from the study highlight that many restaurants engage in one or more practices for building human capital. The identified practices include payment of wages above market rates, development of a realistic work-life balance, and investment in engaging with employees and in developing a supportive organization culture. However, the research revealed that most of these practices are not part of an integral plan. Findings support the development of a more structurally planned and aligned approach to retaining and engaging employees, which may help restaurants to develop their human capital to build and maintain a competitive advantage.