Sustainability in the hotel industry through human resource cost management

This research aims to gain insights into the human resource management practices employed by a hotel to ensure the long-term viability of the organization. This study focuses on the analysis of human resource management practices in the context of the post-COVID-19 period, with a particular emphasis on their influence on cost behavior. This study utilizes a qualitative approach, specifically employing in-depth interviews with a sample of 20 organizational leaders representing different hierarchical levels, including those in top-, middle-, and lower-level management roles. This study uses Sanctoo Suites & Villas in Bali, Indonesia, as the research site. The findings indicate a symmetrical relationship between the behavior of human resource costs and income at Sanctoo Suites & Villas. However, asymmetry arises when considering the relationship with sales volume, specifically in terms of room occupancy rates. This study focuses on managing human resource costs in competitive environments, focusing on financial performance and employee service-quality. Leaders must balance the workforce with fluctuating sales to maintain service quality and financial performance, while ensuring cost efficiency. • This study transitions from a broad emphasis on human resources (HR) management to HR cost management as an integral component of a management accounting approach aimed at sustaining business viability. • This research correlates HR cost behavior to sustainability performance in a post-COVID context, explaining how the crisis and recovery impact cost efficiency and service quality. • HR cost efficiency is achieved by maintaining HR costs within a certain percentage of revenue, allowing costs to fluctuate with revenue. • An occupancy-based budgeting approach is used to control costs without compromising guest satisfaction. • Utilizing daily workers is a key strategy for maintaining cost flexibility and service sustainability.