Human Capital Investment: The Datai Sets a Risky Example

Abstract

Human capital investment is important for service firms that provide personalised
services, for example, luxury hotels. Hotels in Langkawi claim that they conduct
continuous training. The extent of the training is just sufficient to fulfil the Ministry
of Human Resources training requirements. Rarely do businesses spend above the
minimum requirement. This is especially true in the hotel industry, an industry that
many perceive as a stepping stone in building their careers. This makes it significant
to conduct and in-depth interview with the master minds of The Datai Investing in
People (DIP) training programme. The purpose of the interviews is to investigate how
human capital investment is carried out in the hotel industry. Furthermore, the fact that
covid-19 spreads around the world only a year after the “new†Datai reopens makes
it seems riskier as it is very doubtful that the hotel will get the expected returns from
its investment. The findings of this study may enhance understanding of human capital
investment in the hotel industry as it provides in-depth explanation of how The Datai
invests in its human capital. The finding will also bridge the gap between theory and
practice as it enhances understanding of why many hotels choose to limit their human
capital investment. The Datai’s sacrifice makes it clear why it has remained as the
employer of choice.