Environment and Social Psychology

Informal workplace learning and employability: The mediating role of competency development among financial sector employees in Bhutan

Manju Shree Pradhan

Faculty of Business, Economics and Communications, Naresuan University

Vichayanan Rattanawiboonsom

Faculty of Business, Economics and Communications, Naresuan University

Fuangfa Panya

Faculty of Business, Economics and Communications, Naresuan University

DOI: https://doi.org/10.54517/esp.v9i1.1845

Keywords: informal workplace learning, competency development, learning goal orientation, self-directed learning orientation, employability, financial institutions, banks, Bhutan, SEM

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Abstract

Amidst the rapid changes of this era, time constraints act as impediments to employees’ skill acquisition. However, a promising solution emerges in the form of informal workplace learning (IWL). Despite its potential, the precise impact of IWL on employability and competency development has remained an enigma. To unravel this, the present study draws upon the insights of the social learning theory. It delves deep into the impact of IWL on employability, incorporating competency development as a mediating element. The research also examines the potential moderating roles of learning goal orientation (LGO) and self-directed learning orientation (SDLO) in the IWL-competency development relationship. Leveraging data from 512 banking sector participants, the study employs a rigorous deductive design, administering a structured questionnaire through stratified random sampling. Analytical rigor is upheld via Confirmatory Factor Analysis, revealing squared multiple correlations (0.331 to 0.94) and affirming the CFA model’s validity and reliability through indices like average variance extracted (AVE) and composite reliability (CR). The hypotheses are subsequently evaluated through structural equation modelling (SEM). Findings reveal a substantial impact of IWL on employability (β = 0.13), with competency development effectively mediating this relationship (β = 0.30). While the anticipated moderating roles of LGO and SDLO do not manifest, this research furnishes valuable insights for organizations aiming to bolster their workforce’s proficiency and employability via IWL. The study contributes to the discourse on learning strategies amidst the contemporary professional landscape, urging organizations to harness the potential of IWL to foster adaptability and growth.

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