THE IMPACT OF EMPLOYEE COMPETENCE ON PERFORMANCE IN THE HOSPITALITY INDUSTRY: EMPIRICAL EVIDENCE FROM HOTEL GAMMARA MAKASSAR

Abstract

This study examines the influence of employee competence on performance in the hospitality industry, with a particular emphasis on Gammara Hotel Makassar as a case study. This study employs quantitative approaches and path analysis using SmartPLS 4.0 to investigate the relationship between employee competency and performance. The results demonstrated that competence positively influences performance, as indicated by a path coefficient (T-Statistics = 2.256, P-Value = 0.024). This result indicates that improved competence does not necessarily correspond with performance, presumably affected by factors such as motivation, leadership, or a more aggressive work environment. The R-Square score of 0.027 indicates that competence contributes just 2.7% to performance variability, requiring a more comprehensive approach to improve employee productivity. This study emphasizes the need for a more targeted training program and the incorporation of additional supportive factors to improve employee performance in the hospitality industry. Nevertheless, many limitations identified in the study are primarily concentrated on recommendations for future research.