This paper provides an analysis of human resource development and knowledge capital management relations practices used by hotels and resorts in 2007. The study examined the employment instruments used, methods of employee recruitment, selection, staff turnover trends, remuneration policies, attitudes to knowledge capital and the application of service quality measurement. The findings indicate that larger foreign-owned organisations have adopted more innovative approaches than smaller Australian-owned hotels and resorts, while skill shortages and generational attitude changes have driven more inventive retention strategies in both groups. It was also found that in spite of the adoption of more enlightened human resource strategies, staff turnover, particularly casual staff turnover, remains problematic and could negatively impact upon customer satisfaction.
