THE MEDIATING ROLE OF SOCIAL INFORMAL LEARNING IN THE RELATIONSHIP BETWEEN HIGH INVOLVEMENT HUMAN RESOURCE PRACTICE AND LEARNING CLIMATE ON EMPLOYABILITY OF STARTUP COMPANY EMPLOYEES

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THE MEDIATING ROLE OF SOCIAL INFORMAL LEARNING IN THE RELATIONSHIP BETWEEN HIGH INVOLVEMENT HUMAN RESOURCE PRACTICE AND LEARNING CLIMATE ON

EMPLOYABILITY OF STARTUP COMPANY EMPLOYEES

Dewi Sekar Ayu Fanny Martdianty University of Indonesia, Indonesia

Abstract: Startup companies undergo many changes to deal with changing economic conditions and win the competition in the market. One of the factors that can increase company competitiveness is employability of the employee.

This study combines organizational structural factors, namely the application of highly involved human resources and learning culture with employee factor namely social informal learning. The research aims to identify the factors that can enhance or hinder social informal learning and subsequently improve employee employability in startups. Purposive sampling technique was used to select the participants who met specific criteria relevant to the research objec- tives. Data from 290 employees of Indonesian startups analyzed using a structural equation model. The results showed that recognition, empowerment, competitive development, information sharing can enhance social informal learning and subsequently improve employee employability, while financial rewards can decrease social informal learning and employability. Companies that want to increase the practice of social informal learning can improve recognition practices, empowerment, competitive development, and information sharing.

Keywords: High Involvement of Human Resources, Social Informal Learn- ing, Employability, Learning Climate

CITATION

Ayu, D. S. and Martdianty, F. 2023. The Mediating Role of Social Informal Learning in the Relation- ship between High Involvement Human Resource Practice and Learning Climate on Employability of Startup Company Employees. Jurnal Aplikasi Manajemen, Volume 21, Issue 2, Pages 502–515.

Malang: Universitas Brawijaya. DOI: http://dx.doi.org/10.21776/ub.jam.2023.021.02.18.

I N D E X E D I N

D O A J - D i r e c t o r y o f O p e n A c c e s s J o u r n a l s

A C I - A S E A N C i t a t i o n I n d e x S I N T A - S c i e n c e a n d T e c h n o l o g y I n d e x

D i m e n s i o n s G o o g l e S c h o l a r R e s e a c h G a t e G a r u d a

I P I - I n d o n e s i a n P u b l i c a t i o n I n d e x

I n d o n e s i a n O N E S e a r c h

C O R R E S P O ND I N G A U T H O R

D e w i S e k a r A y u F a c u l t y o f E c o n o m y , U n i v e r s i t y o f I n d o n e s i a , I n d o n e s i a

E M A I L [email protected]

OPEN ACCESS

e I S S N 2 3 0 2 - 6 3 3 2 p I S S N 1 6 9 3 - 5 2 4 1

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INTRODUCTION

According to Luger and Koo (2005), a startup is a newly established company with at least one employee during its active period. It is not a branch of a previously established company. The Indonesian government has implemented various programs to support the establishment of startup companies, including the 1000 digital startup program for prospective startup founders and a digital startup assistance program for startups that have started their businesses (Rizkinaswara, 2022). Ho- wever, since the onset of the Covid-19 pandemic, many startup companies have terminated employment due to changes in their strategies to survive the pandemic. It has increased the need for companies to rapidly generate profits, compete and adapt to market conditions, and increase their functional capabilities (Collet et al., 2015; Guilbert et al., 2016).

By building their competencies, employees feel more confident in adapting to various changes in work and organization (Forrier et al., 2015).

Employees with a high level of employability are more likely to find new jobs outside their current organizations (de Cuyper et al., 2011; Vanhercke et al., 2014). Improving employability is the res- ponsibilityofbothemployeesandcompanies(Kim et al., 2015). Companies can increase employee employability by implementing high-involvement human resources practices, such as recognition, competence development, empowerment, information sharing, and rewards (Ouyang et al., 2016).

The company can also increase employee motivation to learn by implementing a learning climate within the company. Learning climate refers to employees' perceptions of the company's rules and practices in facilitating, rewarding, and supporting learning behaviors (Nikolova et al., 2014). While the company can support employees the increase their employability, the employee also has their share. Employees can increase employability through informal social learning through the problem- solving discussions, mentoring, coaching, and job shadowing (Manuti et al., 2015). Informal social learning can be built when employees seek feedback, help, and information to improve their employability, innovation, and performance (Crans et al., 2021).

The adaptability of startup companies large- ly depends on their employees' abilities and poten-

tial. Delery and Roumpi (2017) suggest that employees with relevant knowledge, skills, and abilities can become valuable company assets in achieving their goals. However, the situation in startup companies, where employees can be terminated, and organizational restructuring can occur at any time, means that the types of available work can change abruptly. This situation requires employees to build extensive knowledge and can change career paths (Van Der Heijden et al., 2009). It should be noted that the situation in startup companies is different from that in public service or public- owned companies, where employment is generally more stable and less likely to be terminated.

Li's(2018)researchhighlightstheimportan- ce of employee learning in improving their knowledge and skills, including informal social learning that occurs through daily interactions. Previous research also suggests that different types of learning may result in different outcomes, and the most effective type of learning for each company may depend on its context and employee characteristics (Manuti et al., 2015). One type of learning, such as formal learning, may not necessarily lead to increased skills at work, and startup companies may not have the fund to conduct formal training (Saks and Burke, 2012). Furthermore, this study will focus more on informal social learning. A previous study on informal social learning was held in a sta- te-owned institute in the Netherlands. Different sectors may have unique characteristics contributing to employees' learning (Crans et al., 2021).

The literature on the employee learning has highlighted the importance of developing employee competencies and increasing their employability to adapt to rapidly changing market conditions. However, much of this literature has focused on formal training programs and has overlooked the potential benefits of informal social learning.

Furthermore, there is a lack of research on the specific context of startup companies, which face unique challenges due to their instability and unpre- dictability. This gap in the literature calls for fur- ther investigation into the effectiveness of informal social learning in startup companies and how it can contribute to employee competencies and employability. This research aims to explore the potential benefits of informal social learning in improving employability in startup companies and to identify the factors that influence the effective-

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504 ness of the informal social learning in this context.

The research will contribute to the literature on employee learning in startup companies, provide practical recommendations for companies to enhance employability, and ultimately contribute to the success and sustainability of startup companies in the face of rapidly changing market conditions.

LITERATURE REVIEW

High-involvement human practices

High involvement human practices (HIHP) consist of five dimensions: recognition, competence development, empowerment, information sharing, and reward (Liu, 2018). Recognition involves non-monetary appreciation and positive feedback, which can increase affective commitment and organizational citizenship behavior (Yang, 2012).

Competence development includes job rotation, mentoring, and training, which can enhance prod- uctivity, competitive advantage, and commitment (Browning et al., 2009; Yang, 2012). Empower- ment grants autonomy and responsibilities, enhancing motivation, innovation, and problem-solving while reducing hierarchy (Browning et al., 2009;

Vlachos, 2008; Yang, 2012). Information sharing provides the employees relevant information and can increase trust, commitment, and performance (Browning et al., 2009; Fan and Ku, 2010; Vla- chos, 2008). Finally, perceived fairness in reward and compensation contributes to employees' willingness to compete with competitors (Browning et al., 2009; Paré and Tremblay, 2007).

Learning climate

There are four elements of learning climate:

employees' perception of their ability to learn, opportunities for learning, processes and structures that support learning, and leaders who support learning efforts (Crans et al., 2021). Learning opportunities can be seen by providing time for learning, discussion, and exchanging the ideas (Singer et al., 2012). Processes and structures that support learning can be observed through the technology and infrastructure that facilitate sharing of learning (Singer et al., 2012). Lastly, supportive leaders are identified by actively engaging in dialogue, asking questions, listening to the diverse perspectives and new ideas, and providing space for the discussion while connecting employee learning with the company's strategy (Marsick and Watkins, 2003; Sing-

er et al., 2012)

Social informal learning

Social informal learning involves active interaction, such as listening to discussions, asking questions, and sharing information (Kyndt et al., 2016). It can also occur passively through observ- ing colleagues, and listening to the discussions and presentations, leading to new ways of working and additional perspectives (Meirink et al., 2007). Fro- ehlich et al. (2015) identified three dimensions of informal social learning: feedback-seeking, help- seeking, and information-seeking. Feedback-seeking involves understanding what is effective or in- effective about employee performance, help-seeking is requesting the assistance, instrumentally or emotionally, for work-related problems, and information-seeking is filling information gaps to com- plete the work tasks. Feedback provides employees with the confidence that they can perform their work with the skills they possess (Schürmann and Beausaert, 2016).

Employability

According to Van der Heijden et al. (2018), employability is the continuous effort to expand one's skills and increase the flexibility to enhance one's abilities. Its expanded skill set enables employees to perform various types of work in job market due to their adaptive competencies. Em- ployability encompasses five dimensions: occupational expertise, anticipation and optimization, balance, personal flexibility, and corporate sense.

Occupational expertise refers to employees' knowledge and abilities to perform their current job.

Anticipation and optimization involve reflecting on current developments and preparing for future job changes. Personal flexibility relates to employees' capacity to adapt to changes in their work.

Corporate sense involves identifying the company's goals and accepting shared responsibility for achieving them. Lastly, balance involves balancing employees' needs with those of the company and balancing personal and career demands.

HYPOTHESIS DEVELOPMENT

Learning Climate, Informal Social Learning and Employability

According to (Korpelainen and Kira, 2010), employees prefer to learn new technology by ask-

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ing colleagues and working together to solve problems rather than through formal training sessions provided by the company. Organizational learning climate can enhance the employee employability by motivating them to be open to new ideas, pro- active, and eager to learn (Camps and Rodríguez, 2011). While internal factors such as self-direct- edness and time management influence how employees manage themselves in learning, organizational factors such as organizational support influence their learning intention (Kyndt and Baert, 2013). The type of job also affects the implementation of informal learning, with employees who work in research centers engaging in more informal learning compared to those who teach at univ- ersities due to the greater challenges and new tasks at research centers (Van der Klink et al., 2014).

H1 : Social informal learning significantly mediates the relationship between learning climate and employability.

Recognition, Social Informal Learning and Employability

According to Grawitch et al. (2006), companies that recognize employees' efforts and hard work enhance employees' desire to improve their abilities, which can assist them in carrying out their tasks and responsibilities. Employees experience satisfaction when their sacrifices for the company are acknowledged as meaningful contributions through informal and formal recognition methods (Mustafa et al., 2018). The presence of recognition encourages employees to continue contributing to the company.

H2 : Informal social learning significantly mediates the relationship between recognition and employability.

Competence Development, Social Informal Learning and Employability

Organizationscanenhanceemployees'competencies by providing opportunities to develop skills in leadership, problem-solving, and other ar- eas relevant to career advancement (Grawitch et al., 2006). Organizations that support the employee competency development can increase employees' confidence in their ability to find jobs in the labor market (Drange et al., 2018). Mentoring, coaching, and counseling can enhance employees'

self-efficacy and assist them in identifying strategies for coping with a continuously changing work environment (Dello-Russo et al., 2020). Building competencies and professional networks enable employees to prepare for potential career changes (De Vos et al., 2020).

H3 : Social informal learning significantly mediates the relationship between competence development and employability.

Empowerment, Social Informal Learning and Employability

Employee empowerment leads to the increased loyalty, commitment, job satisfaction, positive perceptions of management, feedback and open communication (Grawitch et al., 2006). Empower- ment also promotes ambidextrous learning, which involves mastering current work (exploration) and exploiting knowledge for future development (Pri- eto-Pastor and Martin-Perez, 2015). Empowered employees can achieve the sustainable careers (De Vos et al., 2020).

H4 : Informal social learning significantly mediates the relationship between empowerment and employability.

Information Sharing, Social Informal Learning and Employability

According to De Vos et al. (2020), resources provided by the company, including information sharing, can help employees improve their abilities and achieve sustainable careers. By sharing information, employees become aware of the contributions expected of them by the company (Kil- roy et al., 2017). Furthermore, employees assess whether they have a person-organization fit based on the values held by the company. If the employees perceive that they share the company's values, they experience lower levels of burnout and have more time to engage in informal social learning.

Collaborative learning among employees through the informal learning can improve their abilities, as they learn relevant skills from their colleagues who excel in performing their tasks, and help them to develop the better learning skills (Muneer et al., 2014)

H5 : Informal social learning significantly mediates the relationship between information sharing and employability.

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506 Reward, Social Informal Learning and Em-

ployability

How employees perceive their work, whether fulfilling the financial needs or filling social calling, can influence their sustainable careers (De Vos et al., 2020). In the context of work, low pos- sibilities of salary increases and promotion opportunities can demotivate employees from engaging in learning (Kyndt and Baert, 2013), as they can- not see the positive impact of learning on their career development. The higher the salary, the higher the cost of training for job demands (Felstead et al., 2015). Thus, high-paid employees tend to focus on formal learning through paid training or se- minars, with less participation in informal social learning.

H6 : Informal social learning significantly mediates the relationship between reward and employability.

METHOD

The current study utilizes a quantitative research design to examine the relationship and mediating role of the investigated variables. The sampling technique used is purposive sampling, as the participant needs to have specific criteria. Data were collected through an online questionnaire ad- ministered to employees currently working in startup companies that have undergone downsizing from 2020 to 2022. It aims to investigate whether the company's downsizing characteristics impact employees' learning behavior, how they perceive and utilize the learning culture within the organization, and how the combination of these factors shapes employees' employability. Screening questions will be provided to identify whether the respondent's company has undergone employee re- ductions during specified period. This study gath- ers data from 290 employees. Data were analyzed using structural equation modelling with Lisrel.

All Instruments used in this study were tran- slated from English to Indonesian, using 7 points Likert ranging from strongly disagree to agree strongly. High involvement in human resource practice is a multidimensional variable consisting of recognition, competence development, empowerment, reward, and information sharing (Paré and Tremblay, 2007). This variable was measured by an instrument developed by Paré and Tremblay (2007) consisting of 28 items, 6 items measured

recognition, 6 items measured competence development, 3 items measured empowerment, 9 items measured information sharing, and 4 items measured rewards. An example item was "In my work unit, suggestions from employees are followed up regularly". Learning climate is the environmental factor that makes employees feel secure in expres- sing their thoughts and making errors, appreciate diverse perspectives and work methods, empha- size innovative ideas, and carefully consider decision-making (Singer et al., 2012). The learning climate was measured by 7 items from Singer et al.

(2012). An example item was "In my work group, and people value new ideas".

Social informal learning is learning through feedback-seeking, help-seeking and information- seeking in the workplace (Froehlich et al., 2017).

This variable was measured by a questionnaire developed by Froehlich et al. (2017) consisting of 12 items. The sample question was, "I participate in project groups to discuss work-related problems."

The employability is an employee or super- visor's personal view regarding their competence and potential to secure and retain the employment (Van der Heijden et al., 2018). This variable was measured by questionnaire developed by Van der Heijden et al. (2018) consisting of 22 items. The sample question was, "In general, I am competent to distinguish main issues from side issues and to set priorities."

RESULTS

Respondent Characteristics

Most of the respondents are male (63.79%), followed by the female (36.21%). 85.52% of respondents graduated from undergraduate, 14.41%

from postgraduate, and 0.34% from high school.

91.3% is a permanent employees, and 8.7% is a contract employee. 50.69% of respondents have 1- 5 years of experience. 75.52% of respondents have worked 1-5 years in their current position.

In this study, all the items in the questionnaire are valid. High involvement in human resources has a loading factor range from 0.5 to 0.73.

Learning climate has a loading factor range from 0.64 to 0.84. The social informal learning standard has a loading factor ranging from 0.58 to 0.69, and the employability standard has a loading factor ranging from 0.71 to 0.8, indicating high validity for all constructs.

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Figure 1. Structural Model Path

Hypothesis Testing

All instruments have composite reliability above 0.7, indicating that they are reliable. The composite reliability for the high involvement human resource standard is 0.95. The learning climate's composite reliability is 0.92, the social informal learning's composite reliability is 0.89, and the employability's composite reliability is 0.97.

All these values are above the threshold of 0.7, indicating that the measures are reliable. The average variance extracted (AVE) for each construct also indicates high reliability, with values ranging from 0.39 to 0.62. Although high involvement in human resources and informal social learning has an average variance extracted below 0.5, the item is still reliable because they have high composite reliability (Hair et al., 2010).

Based on the structural equation model, all hypotheses are accepted. Hypothesis 1 predicted that informal social learning significantly mediates the relationship between learning climate and employability. Results show a significant positive

relationship between learning climate and employability (β=0.71, t=9.9) and confirm a direct effect. For the indirect effect, there is a significant positive relationship between social informal learning and employability (β=0.13, t=2,24) and a significant positive relationship between learning cli- mateandsocialinformallearning(β=0.34,t=5,31).

Therefore, informal social learning partially mediates the relationship between learning climate and employability, and H1 accepted.

H2 predicted that the informal social learning significantly mediates the relationship between recognition and employability. The result found that the relationship between recog-nition and employabilityisinsignificant(β=0.07,t=1.13).For the indirect effect, there is a significant positive relationship between social informal learning and employability (β=0.13, t=2.24) and a significant positiverelationshipbetweenrecognitionandsoci- al informal learning (β=0.18, t=2.1). Social informal learning fully mediates relationship between recognition and employability and H2 accepted.

Recognition

Empowerment

Competence Development

Information Sharing

Reward

Learning Climate

Social informal

learning Employability

β = 0,07, t = 1,13 β = 0,01 , t = 0,09 β = 0,1, t = 1,28 β = 0,04, t = 0,63 β = -0,41, t = -3,16 β = 0,71, t = 9,9 β = 0,18

t = 2,1

β = 0,26 t = 2,06

β = 0,22 t = 1,97

β = 0,47 t = 5,64

β = -0,53 t = -3,16

β = 0,34 t = 5,31

β = 0,13 t = 2,24

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508 H3 predicted that informal social learning

significantly mediates the relationship between competence development and employability. The result shows that the relationship between competence development and employability is insignifi- cant (β=0.1, t=1.28). In comparison, there is a significant positive relationship between the social informal learning and the employability (β=0.13, t=2.24) and a positively significant relati-onship between competence development and social informal learning (β=0.22, t=1.97). Hence, informal social learning fully mediates the relationship between competence development and employability and confirms H3.

H4 predicted that informal social learning significantly mediates the relationship between em-powerment and employability. Results show that the relationship between empowerment and employability (β=0.01, t=0.09) is not significant, and the relationship between empowerment and informal social learning is positively significant (β=0.26, t=2.06). Therefore informal social learning fully mediates the relationship between the empowerment and employability and confirms H4.

H5 predicts social informal learning significantly mediates the relationship between information sharing and employability. Results show that the relationship between information sharing and employability (β=0.04, t=0.63) is not significant.

The relationship between information sharing and informal social learning is positively significant (β=0.26, t=2.06). Therefore informal social learning fully mediates the relationship between information sharing and employability, supporting H5.

H6 predicted informal social learning significantly mediates the relationship between reward and employability. Results show a significantly negative relationship between reward and employability (β=-0.41, t=-3.16). The relationship between reward and informal social learning is significantly negative (β=-0.53, t=-3.16). Therefore informal social learning partially mediates the relationship between reward and employability, sup- portingH6.Theoverallmodel also indicates good fit with RMSEA 0.032, SRMR 0.048, GFI 0.77, NFI 0.95, NNFI 0.99, CFI 0.99, IFI 0.99 and RFI 0.95.

DISCUSSION

The present study addresses the proposal by

Manuti et al. (2015), suggesting that the research on learning should be conducted within specific industries due to the distinctive approaches to improving skills across different industries. For in- stance, formal education is a mandatory require- ment for enhancing one's teaching skills in the education industry. Whereas in a startup, there is no obligation to improve formal education. Consequ- ently, the decision of employees to engage in learning activities is influenced by structural and personal factors. Moreover, research on employability needs to consider contextual factors, as the development of the employability is significantly in- fluencedbythecontextualfactors(Froehlichetal., 2019).AccordingtoOrdiz-FuertesandFernández- Sánchez (2003), startup companies are character- ized as being in a medium growth phase, requiring quick adaptation to new ideas, and operating in highly competitive environments necessitates the use of high-involvement human resource practices to respond to market challenges. Companies invest in employee development to enable employees to perform various roles within the department or organization (Froehlich et al., 2019).

Learning Climate, Informal Social Learning and Employability

This research confirmed that informal social learning can mediate the relationship between the learning climate and employability. To learn through social interaction, employees will need to explore the environment, which will be difficult to achieve without the support from the organization.

Employee intention to learn will increase with the support from the organization (Kyndt and Baert, 2013). When asking for help, information, or feedback, employees proactively act to solve problems that arise in their work. Therefore, employees can gain more knowledge about their work or organizational processes and trends in their job or improve their employability (Froehlich et al., 2015). The employees that work in startup companies engage in informal social learning because they face new challenging tasks due to the company's rapid change (Van der Klink et al., 2014).

Reward, Social Informal Learning and Em- ployability

Based on structural test results, the reward has the greatest influence on informal social learn-

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ing, followed by information sharing, empowerment, competence development and recognition.

These results differ from Liu's research (2018), which stated that the order of dimensions most related to employee learning is empowerment, competence development, information sharing, recognition and reward. Two things can cause this difference. First, the variable examined in this study is social informal learning or learning that is carried out informally through the social interaction. In contrast, Liu's research (2018) examines employee learning or learning processes carried out by employees of their own free will, which can be in various forms, both social and non-social. Then the second is the difference in the research participants, where Liu's research participants’ work for the government-owned companies, while this research was conducted at startup companies in In- donesia which have different characteristics from government-owned companies.

Participants in those studies saw their company lay off other companies, which can affect their way of thinking to value rewards the most.

High rewards usually correlate with a higher position in the organization, possibly contributing to their unwillingness to participate in informal social learning. Company rewards in this study were evaluated based on external rewards, which indi- cated that employees' perception of fairness of rewards could reduce social informal learning behavior.

To increase the motivation for informal social learning and employability, companies can develop practices that provide internal rewards such as self-fulfilment and social contribution for employees from their jobs. Some ways to achieve this include setting realistic and meaningful goals, creating a climate of mutual respect, and providing recognition when employees reach their targets (Smith and Rupp, 2004). Another factor that may decrease employee interest in informal social learning and employability is a limited budget for the salary increases, even if they are distributed fairly among the company or industry (Smith and Rupp, 2004). To overcome this, company leaders should explain to employees how the calculation for salary increases and bonuses is made so that employees can understand the reasons behind the amounts they receive. Non-financial rewards can also reduce the turnover rates and increase company profits

more than the financial rewards (Peterson and Lu- thans,2006).Therefore,companiesmayoffernon- financial rewards to employees to improve their competitive ability. Additionally, other types of learning that are likely to be enhanced with reward systems should be explored. Previous studies have shown that different types of learning can produce different outputs (Coetzer et al., 2020),

Recognition, Social Informal Learning and Employability

The implementation of recognition can have a significant impact on the development of the employees' competencies, leading to increased employability. Wang and Shaheryar (2020) found that recognition can motivate employees to invest more energy and become more absorbed in their work, resulting in a deeper understanding of their tasks and improved abilities. They also feel more satisfied with their job with the recognition from the company (Mustafa et al., 2018). In a startup company, employees may have limited access to formal training due to budget constraints or a lack of established training programs. However, organizations that foster a culture of recognition can facilitate informal learning opportunities, as recog- nized employees may share their experiences and knowledge with their colleagues. Meirink et al.

(2007) found that informal social learning can be particularly effective in startups, where the employees may have similar experiences and face similar challenges. As such, recognition can enhance individual competencies and facilitate the transfer of knowledge and skills among employees, ultimately leading to increased employability of the entire workforce.

Competence Development, Social Informal Learning and Employability

By developing their competencies, the company enables employees to gain insight into effective ways of working from their coworkers who have previously been successfully learning competency needed (Meirink et al., 2007). According to Drange et al. (2018), organizations that support employee competency development can increase employees' confidence in their ability to find jobs in the labor market. Informal learning activities such as mentoring, coaching, and counseling can enhance employees' self-efficacy and assist them

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ously changing work environment, ultimately leading to increased employability (Dello-Russo et al., 2020). Furthermore, building competencies and professional networks through informal learning enable employees to prepare for potential career changes, which can be particularly important in startups that may experience high employee lay- offs (De Vos et al., 2020).

Empowerment, Social Informal Learning and Employability

Empowerment allows employees to take on greater responsibility and trust to perform their work as they deem most suitable (Yang, 2012).

Through informal social learning, employees can discuss the best approaches to handling challenges with colleagues and superiors, improving their problem-solving skills and decision-making abilities (Schürmann and Beausaert, 2016). Studies have shown that empowerment increases motivation, job satisfaction, commitment, and organizational citizenship behavior among the employees in In- dia (Gahlawat and Kundu, 2020). In the context of a startup company, where employees are often re- quired to be flexible and adaptable, empowering them through the informal social learning can help them acquire the skills and knowledge needed to perform their work effectively and respond to the demands of a changing business environment.

Information Sharing, Social Informal Learning and Employability

Sharing information with employees gives them more information to build relationships with the customers and colleagues (Fan and Ku, 2010).

Companies that provide information openly to their employees through information-sharing practices create a sense of psychological safety because all applicable rules are transparently communicat- ed, enabling employees to measure the impact of their actions (Rana, 2015). Thus, employees are more willing to engage in informal learning activities, knowing that the company supports such activities. In addition, empowerment, competence development, and information sharing can cause employees to feel a fit with the company culture, increasing the transmission of company values (Kil- roy et al., 2017). The alignment of employee values with those of the organization is important in

startup companies, where the company's success is often driven by the values and attitudes of its employees.

Implementation of Social Exchange Theory Based on the social exchange theory, companies invest in employees to improve their ability byimplementingrecognition,empowerment,competence development, information sharing, and learning climate so that employees can contribute to the company by engaging in learning through informal social learning, increasing employability.

In this case, the mechanism is the backward and forward exchange. Backward exchange is the employee's reaction to things the company will do based on their experiences in the past. In contrast, the forward exchange is the employee's anticipation of the company's actions in the future (Fugate et al., 2021). From the perspective of backward exchange, employees take action based on their perceptionofpreviousactions.Forexample,asses- sments related to rewards are based on employee perceptions of how fairly salary distribution has been compared to the same position in other companies.

On the other hand, in terms of forward exchange, in the context of startup companies that have reduced employees, the employees may ma- ke decisions regarding their learning because they predict that the future is uncertain and rapidly changing. Hence, they need to improve their skills. In uncertain situations, companies may choose to invest in employees who have the potential to continue growing with the company.

A good social exchange relationship will trigger a positive reinforcement balancing cycle (Fugate et al., 2021). A positive reinforcement cycle occurs when the company takes action to support employees in increasing employability with the expectation that the employees will reciprocate with more social informal learning and thus improve their skills.

IMPLICATIONS

The study on informal social learning has several implications. First, it highlights the importance of informal social learning in the workplace to promote knowledge sharing and development among employees. This finding suggests that organizations should encourage and facilitate infor-

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mal social learning opportunities like networking events, mentorship programs, and online commu- nities. Second, the study suggests that informal social learning is a complex process involving individual and social factors. Therefore, organizations should take a comprehensive approach to support informal social learning by providing the neces- sary resources and tools and creating a conducive organizational culture that values and encourages informal learning. Third, the study has implications for the design of the training and development programs. By understanding the factors that influence informal social learning, trainers can incor- porate social and collaborative elements into their programs to maximize learning outcomes.

Based on the social exchange theory, the research above suggests that individuals engage in informal social learning when they perceive the benefits outweigh the costs. Therefore, the organizations should ensure sufficient incentives and rewards for employees who engage in informal social learning. These can include recognition, pro- motions, and other forms of compensation.

RECOMMENDATIONS

Based on the findings and limitations of the study on informal social learning, there are several recommendations for future research. Firstly, con- ducting a similar study in different cultural con- texts would be beneficial to see if the results are consistent. It can help to determine whether the social exchange theory is applicable across different cultural settings. Secondly, it would be useful to investigate the impact of different types of social interactions on learning outcomes. For example, it would be interesting to explore the effectiveness of the online social interactions versus face-to-face interactions. Finally, it may be worthwhile to conduct longitudinal studies to track the development of informal learning over time. It can help to understand the long-term impact of social interactions on learning outcomes. By addressing these recommendations, future research can provide a more comprehensive understanding of informal social learning and its implications for education and training.

One of the limitations of the study on informal social learning is that the research was conducted in specific cultural and organizational context, which may limit the generalizability of the

findings to other settings. Additionally, this study is cross-sectional, meaning data was only collected once. Cross-sectional studies can be prone to selection bias and may not accurately reflect changes over time.

CONCLUSIONS

This research highlights the importance of informal social learning as a mediator between the learning climate, high-involvement human resour- cepractices,andtheemployability.Thestudycon- firms that recognition, empowerment, competence development, information sharing, fair reward, and learning climate provided by the organization can positively influence employees' willingness to learn through informal social learning with their colleagues. The findings also suggest that non-financial rewards can increase employee retention and competitiveness more effectively than financial rewards.

Moreover, the social exchange theory provides a framework for understanding the relationship between the company's investment in employee development and its subsequent contribution to the organization. These findings have important implications for organizations seeking to improve their employees' employability and competitiveness. By providing a supportive learning environment and opportunities for informal social learning, organizations can create a positive exchange relationship with their employees, leading to improved employee performance and retention and, ultimately, a more competitive and successful organization.

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