International Journal of Business and Economy (IJBEC) eISSN: 2682-8359 [Vol. 3 No. 4 December 2021]
Journal website: http://myjms.mohe.gov.my/index.php/ijbec
LIFELONG LEARNING IMPACT AND ITS INFLUENCE ON EMPLOYERS’ ENGAGEMENT IN MALAYSIA
Nur Hafizah Ishak1* and Nor Aishah Buang2
1 2 Faculty of Education, National University of Malaysia, Bangi, MALAYSIA
*Corresponding author: [email protected]
Article Information:
Article history:
Received date : 10 December 2021 Revised date : 22 December 2021 Accepted date : 26 December 2021 Published date : 30 December 2021 To cite this document:
Ishak, N., & Buang, N. (2021).
LIFELONG LEARNING IMPACT AND ITS INFLUENCE ON EMPLOYERS’ ENGAGEMENT IN MALAYSIA. International Journal of Business and Economy, 3(4), 241-251.
Abstract: In Malaysia, Small and Medium Enterprise (SME) has become the vital contributor in generate a knowledgeable and skilled worker thus are expected to increase a number of skilled local employment. In order to utilize workers performance, SMEs’ employer is encouraged to engage lifelong learning programmes offered by training providers. Yet, there are still local SMEs who refuse to engage with training providers despite knowing the benefit of lifelong learning (LLL) programmes to their business performance. The study was conducted to examine the level of engagement (knowledge, readiness and attitude) of SMEs’ employer toward the impact of lifelong learning programmes to their workers. A quantitative study was conducted using a survey method towards 676 respondents. Findings showed SMEs’ employer is knowledgeable about LLL programmes but not fully ready and have slightly bad attitude perception on their workers who attend the training. Findings also found a moderate significant relationship between level engagement and the impact of LLL programmes. Besides, researcher has provided several suggestions to training providers in order to identify and emphasize training as a compulsory to enhance employers’ engagement.
Keywords: lifelong learning, small and medium enterprise, employers’ engagement.
1. Introduction
Economic growth is heavily dependent on the growth of human capital. According to (Jayabalan et. al 2020) raising the quality of skilled and knowledgeable workforce can generate a substantial payoff in economic growth. Every SME need a good human capital to enhance their business performance in order to contribute to the GDP. This evident, there is a growth in GDP, which SME has consistently outperformed the overall economic growth from 37.9 % in 2015 to 38.9% in 2019 (Statistic of Malaysia Department 2020). Moreover, 98.5% of SMEs organization are contribute about 48.4% of total employment in 2015 (Economic Census 2016).
This numbers indicate that SMEs contribute to job creation, increase income (Abdullah &
Hussin 2021) and reduce poverty rates (Zafar & Mustafa 2017).
Therefore, business performance can be improved by increasing the numbers of skilled worker among local. Training is a way to increase the number of skilled workers in order to produce quality human capital in line with improving business performance. To do so, employers play an important role in engaging with training providers in order to promote lifelong learning program to their local workers. Ismail et. al (2013) stated that continuous training is able to maintain the capabilities of an organization in market, enrich skills and knowledge thereby increase the productivity of an organization. The improvement of human quality is essential to increase the efficiency and productivity of the country (Ismail et. al 2011).
In an attempt to understand the low participant of workers in SME industry toward LLL offered by training provider, this paper seeks to examine the possible factors that hinder employer engagement to support LLL. This is investigated in the context of whether demographic and motivation factor have an effect on employer’s preference toward LLL. This paper further examined to see whether the impact of LLL given more benefit or cost to employer who employ their workers. The paper finally concludes with discussion on government policies and long- term measures which might have effect on employer continued participation in order to achieve local skilled workers.
2. Literature Review
Referring to the impact of LLL programmes, previous study found that there are three variables that impact the effectiveness of LLL programmes, such as trainee, training provider and organization (Muhammad Dzarib & Othman, 2021). Anthony et. al (2002) claimed that the responsibilities of training are influenced by top management, human resource development, immediate supervisor and the employee themselves. The LLL programmes would help SMEs to achieve organizational goals and bring the tangible outcomes. The outcomes could include an increase in sales, reduced turnover, or higher production level (O’Conner et. al 2002). Thus, SMEs’ employer is encouraged to engage in LLL programmes.
Reasoned Action Theory expressed by Fishbean & Ajzen (1980), said this theory places a person’s behaviour influenced by intention to perform an action. This theory is frequently used by past researchers to predict individual behaviour (Hashim et. al 2009; Hummad & Nor 2015;
K. Selvarajah T. Krishnan et. al 2017) of training in SME. Then, Ajzen (1985) added intention does not only cause change in behaviour, yet the reflective aspect of experience is able to provide control of action behaviour.
Noe et. al (2000) said training refer to the planned effort of an organization to facilitate the learning of its workers in order to increase efficiency in doing work. This is because training is always considered as a source of motivation for the workers working in an organization (Alamri & Al-Duhaim 2017). Thus, employer should knowledgeable (Fleischmann & Koster 2017), readiness (Md. Noor et al. 2013; K. Selvarajah T. Krishnan et. al 2017) and have good attitude (Ismail et. al 2016; Muhammad Dzarib & Othman 2021) to engage in LLL programmes.
Moore & Birkinshaw (1998) stated knowledge refers to facts that theories, procedures, social skills, strategies, styles, worldviews, and value of workplaces and the most important use is understanding of knowledge and applied its. Knowledge is formed from experience (Zakaria et. al 2020) while Ishak & Buang (2021) added knowledge gained from academic qualification.
According to organizational theory, knowledge is a critical resource in competitive advantage and able to create or added value to organization (Cunmings dan Teng 2003). Thus, the more knowledge gained, the more aware of employer to engage with LLL programmes for their workers to attend. As has been explained by A. Manaf & Baharudin (2016) stated that lack of knowledge is the cause of failure of SMEs to survive.
Readiness is a pre-condition needed for a person or organization to succeed in facing organizational change (Holt et. al 2007). To accelerate readiness for change in the organization, support from the government is very important as main investor in LLL in Malaysia.
Government spread awareness and benefit of training to convinced SMEs’ employer perception to be ready to engage (Yahya et. al 2012).
Attitude is a constant tendency to give responsibility or not to an object. This tendency is the result of experience and not of instinct or heredity (Ajzen & Fishbean 1970). A good attitude perception that exists towards an assessment of the work situation give rise to satisfaction (Idrus 2006). Worse, dissatisfaction among workers would mean higher probability of the employer to lose its own skilled and talented workers as well as the loss of intellectual capital (Masroor & Jamilha 2009). Opsahl & Dunnette (2006) added reward factor lies in an individual’s satisfaction. When an individual earns a well-deserved reward, they become more motivated (Herzberg 2006).
Regardless the explanation, to facilitate the engagement, motivation is an ultimate factor that cause employer to involve in LLL. Motivated employers tend to support LLL programmes by encouraging their workers to attend training as an effort to increase workers productivity (physical and value productivity) thus improving organizational performance. As a mentioned by Alimuddin (2012) that motivation is one of the value productivities.
2.1 Problem Statement
The greater the number of SMEs, the more job opportunities are offered. But SMEs tend to offer the jobs to a foreign worker than local. The dependence of SMEs on foreign workers has increased gradually by employing semi-skilled and low-skilled foreign workers. An increase of 8.5% was recorded in 2019 from 17.3% in the third quarter of 2018 (Annual Report of SME 2019/20). Employers tend to choose foreign workers due to factor of lower wage and willingness to do additional work. As a result, the participation rate of workers attending training decreased due to the dumping of foreign workers (Pischke 2001). This issue is getting
worse by reluctance SMEs send their employees to attend training because they think it is a costly than profitable investment (Wahab et. al 2019).
However, not all employer has knowledge, willingness and good attitude in promoting LLL programmes to their employee. This coincides with a study by Flecther (2003), a person who have a solid knowledge will have a high willingness and attitude to behave positively (Fishbean
& Ajzen 1975) by engaging in a training. Commitment and support from employers towards planning and implementation will be able to encourage workers to be more confident and involved in training programmes (Ismail and Ibrahim 2010).
Thus, this study aims to (i) examine the level of engagement on the perception of the impact of LLL programmes, (ii) identify the relationship between the level of engagement and perception of the impact of LLL programmes and (iii) identify whether there are significant level differences of the level of engagement on perception of the impact of LLL programmes based on gender and company establishment.
3. Method
In this paper, the study was conducted using quantitative method by the design of cross- sectional survey. Self-administered questionnaire has been done and analysed using SPSS v.
20. After selecting the SMEs’ employer in their state, a sample size of at least 665 was determined for this study as suggested by Krejcie and Morgan (1970). Due to limitation such as busyness as an entrepreneur, convenient sampling technique was chosen as it more achievable to provide enough sample for the analysis.
3.1 Materials
A set of survey instrument was employed for data collection that comprised by 3 sections. The first section dealt with the respondent’s profile and demographic background. The second section focuses on respondent’s engagement. The third section is related to the impact of LLL programmes. The engagement questionnaire is consisted of 22 items related to knowledge (6 items), readiness (7 items) and attitude (11 items) of respondent. The impact of LLL programmes is consisted of 10 items related to performance of learning, workers and organization. The items of engagement and LLL impact were measured by Likert scale, ranging from 1 as strongly disagree to 5 as strongly agree.
3.1.1 Samples
The target population for this study are SMEs in manufacturing and services sector in Malaysia.
The population in on SMEs’ employer from three different site were randomly selected based three state (N=397,525). Sample selection was made by stratified random sampling. This technique was used to ensure that each state has enough representatives to be the studied. The minimum sample size was 665 according to sampling error and normal distribution assumption based on justification of large population in this study (Cochran 1977). Setting of 99%
confidence level with ±5% accuracy, the calculation is as follow:
𝑛 = 𝑛𝑜 1 +(𝑛𝑜− 1)
𝒩
Indicator (assuming normal distribution)
𝑛𝑜= 𝑧
2 𝑝𝑞 𝑒2
Where is,
n = sample size
no = inappropriate sample size N = population size (397,525) p = population ration seen to be 0.5
q = 1 – p (population ration seen to be, 1 – 0.5 = 0.5) e = degree of accuracy in the population 0.05
z = the accuracy of the desired population 2.58 (from table of z) 𝑛𝑜= (2.58)2 (0.5)(0.5)
(0.05)2
= 666
The number of SMEs is as follows:
Then, no = 666 Next,
𝑛 = 666
1 +(666 − 1) 397,525 n = 665
After taking into account the factor of non-returned questionnaire, an additional 30% of minimum sample size was added and a total of 676 sets of self-administered questionnaires were successfully gathered by researcher.
3.1.2 Site
This study intended to collect the responses from SMEs’ employer in the manufacturing and services sector in three various state namely Kuala Lumpur, Selangor and Johor in Malaysia.
3.1.3 Procedures
Before the fieldwork, the instrument must go through reliability and validity procedure through a pilot study to ensure reliable and valid data to the next analysis step. Findings from the pilot study has been used to improve the questionnaire to ensure all information obtained is more relevant and does not neglect the important issues that need to be made through the study.
Based on pilot testing conducted on 52 SMEs’ employer, the instrument validity was as follows: .843 (engagement) and .955 (impact of LLL programmes).
The General Training Effectiveness Scale was adapted to measure the effectiveness of training (Abdul Aziz 2015). Meanwhile, the engagement variables based on Reasoned Action Theory with reference studies from Mazlan (2017) and Abdul Wahab (2014).
After careful consideration of all independent and dependent variables in the research model of the study. The following hypothesis is developed to test the empirical finding. The hypothesis for this study addressed the relationship between three variables of engagement level and LLL impact. The fundamental hypotheses as follow on the basis of the variables identified in research model (Figure 1).
Figure 1: Research Model
First objective is to identify the engagement factor influencing in LLL programmes impact among SMEs’ employer perception.
In order to answer second objective, Ho1 was formed based on constructed research question:
Ho1: there is no significant between engagement level and the perception of LLL impact among SMEs’ employer.
For third objective, Ho2 and Ho3 formed as follows:
Ho2: there is no significant differences between engagement level and the perception of LLL impact among SMEs’ employer based on gender.
Ho3: there is no significant differences between engagement level and the perception of LLL impact among SMEs’ employer based on company establishment.
3.2 Measurement
This questionnaire is prepared bilingually so that respondent may understand more clearly, cross-check while answering questionnaire. The measurement method is used in this study has been developed, tested and validated by previous researcher.
3.3 Data Analysis
Data were coded and processed using SPSS v. 20 descriptively and inferentially using mean, standard deviation, frequency, percentage, correlation and multivariate analysis (MANOVA).
Descriptive statistic is to identify the level of engagement on the perception of the impact of LLL programmes. Statistical inference is used to analysed the relationship between the level of engagement and perception of the impact of LLL programmes and identify whether there are significant level differences of the level of engagement on perception of the impact of LLL programmes based on gender and company establishment.
Knowledge
LLL Impact Readiness
Attitude Demographic:
• Gender
• Company establishment
Ho1
Ho2 and Ho3
Independent variables
Dependent variable
3.3.1 Validity and Reliability
To examine construct validity of measures adopted in this study, a factor analysis was performed. Principal factor analysis with varimax rotation was conducted to assess the underlying structure for 22 items of the engagement questionnaire. After rotation, three constructs appeared. Based on the fact, the items were namely: knowledge (factor 1), readiness (factor 2) and attitude (factor 3). The first factor accounted for 30.9% of the variance, the second factor accounted for 9.8% and the third factor accounted for 5.0%. All factor, the total variance explained was 45.7%. principal factor with varimax rotation also was conducted to assess the underlying structure for the 10 items of the impact of LLL programmes. After rotation, a construct appears. For the impact of LLL programmes, the total variance explained was 65.6%.
Cronbach’s Alpha will be used to test the reliability and internal consistency of the data obtained for the research. Based on the reliability test conducted, the overall reliability shows Cronbach’s Alpha value of 0.894 which indicates high reliability. All the Cronbach’s Alpha values demonstrated high reliability and internal consistency in all variables.
4. Results and Discussion
Theoretically, the result in this study supported by the Reasoned Action Theory and reciprocal norms in context of relationship between workers and employer in Malaysia. This theory is based on the assumption of person’s behaviour is formed from belief on traits and traits perception. Thus, a study done by Mohd Nawi and Mohd Nasir (2020) explain about the element of motivation based on Reasoned Action Theory and Planned Action Theory is a factor of engagement for employer to involve in business.
From a total 676 respondent, 435 (64.3%) were male employer. Majority of them have at least is a degree holder in academic qualification (62.9%) with a age range of 41-50 years (59.8%).
Most of the SMEs’ employer is a Chinese entrepreneur (47.9% and 324 respondent). Ishak and Buang (2021) responded of the occurrence of socio-economic imbalances in business field pioneered by non-Bumiputeras.
Descriptive analysis shown that knowledge is the vital factor influence SMEs’ employer to engage in LLL with score mean 3.481 than readiness and attitude (refer Table 1). Furthermore, illustrated in Table 2 and Table 3, the impact of LLL programmes among SMEs’ employer perception is in a high level (mean=3.65) and lowest rank is for item ‘able to solve particular task after attended training programmes’ also in a high level (mean=3.12). These findings indicated, generally employers acknowledge the effectiveness of LLL programmes to learning, workers and organization performance impact as well as value creation and workers retention/turnover as the study done by HRDF (2018).
Table 1: Mean Score of Engagement Factor Engagement Factor Mean
Knowledge 3.481
Readiness 2.741
Attitude 2.821
Table 2: Descriptive Analysis of LLL Impact
Minimum Maximum Std. deviation Mean
LLL impact 3.12 3.91 0.32 3.65
Table 3: Level Determination Based on Mean Value
Likert Scale 1 2 3 4
Likert Scale 3 Point 1 2 3
Mean Value 1.000-2.490 2.500 2.510-4.000
Rank Low Moderate High
Pearson’s Bivariate Correlation was performed on the predictor (Engagement Level), shown there is a moderate relationship between engagement level and LLL impact [r=0.487, p=0.000 (p<.05). As shown in Table 4, there were significant relationship between all the studied independent variables namely knowledge [r=0.687, p=0.000 (p<.05)], readiness [r=0.333, p=0.000 (p<.05)], attitude [r=0.326, p=0.000 (p<.05)] and LLL impact. Thus, Ho1 is rejected.
These findings explain that most of the employer are knowledgeable about LLL programmes, but not fully ready to engage in LLL programmes. Worse, bad perception exacerbate the participation of employer to join LLL.
Table 4: Correlation Analysis Independent
Variables
LLL Impact p Relation Between Variable
Knowledge .687** .000 Strong
Readiness .333** .000 Moderate
Attitude .326** .000 Moderate
**correlation is significant at the .001 level (2-tailed)
One way multivariate analysis (MANOVA) was conducted to determine the differences, if any, between the mean of two demographic (gender and company establishment) with respect to the dependent variable listed. The result of MANOVA is presented below (Table 5). Significant differences were found between company establishment on dependent variable, Wilk’s Lamba (λ) = 0.723, F(2,674)=21.763 p<.05 and vise versa for gender [Wilk’s Lamba (λ) = 0.953, F(2,674)=2.631 p>.05]. Hence, Ho2 accepted and Ho3 rejected relatively.
Table 5: Wilk’s Lamba Value of Engagement Level by Gender and Company Establishment Effect Value F Hypothesis
df
Error df
Sig.
Gender 0.953 2.631 2 674 0.067
Company
Establishment 0.723 21.763 2 674 0.000**
Result of this studies shows that all the engagement factor (knowledge, readiness and attitude) encourages SMEs’ employer to participate more in lifelong learning that offered by training provider. Most employers are aware of the existence of LLL programmes, but demand from industry is low despite the dumping of supply from training provider ahead. Firm sizes, part- time operated and not registered enterprise is a leakage factor in getting information about LLL programmes. Moreover, training cost become a vital factor for employer to engage in training despite knowing the benefit for their company profitable (Ismail and Mohamad 2017). Ishak et. al (2019) added there is no impose condition for workers who attend training because of own responsibility to pursue study while working.
Scepticism over the impact of learning investment such as expectation of workers asking for salaries and ranks as well as accepting better job offers prevent employers from supporting the LLL agenda. Suggested, employers should act in a win-win situation with their workers.
Recognition, appreciation such as bonuses, allowance and flexibility to attend courses is able to increase worker’s motivation as the workers contributed productivity to their company profit. Undeniable, when individual effort is rewarded ideally, it would be interest to work.
They should be train if not meet the required skills (Ismail et. al 2015).
Overall, the readiness and attitude of SMEs’ employer need to be enhanced in their understanding of importance of training programmes while workers is a human recourse whose capabilities to developed and optimized through the enhancement of knowledge and skills.
Consistent with the descriptive analysis conducted by Esa and Wan Ahmad (2010) showed the main criteria for SME involvement in training programmes is the demand for skilled workers to meet the current needs of industry.
The research scope in terms of research area and focus on the research can be extended so that the research can provide more authentic data. The focus of the research can also be done to a larger industry. It is also suggested that use more than one instrument such as interview and survey form. This allow the data collected to be more accurate and vary.
5. Conclusion
The impact of training has been revised in various studies before, are not surprising, considering that a plethora of studies has come to similar conclusions (Ismail and Ibrahim 2010; Ismail et. al 2011; Yahya et. al 2012; Ismail et. al 2015). This considering that LLL give a huge impact when there are more skilled workers needed for the company growth. Mindset from ‘cost’ to ‘profitable investment’ should bear in mind to be a successful entrepreneur.
Thus, issues and barriers regarding lifelong learning need to be taken seriously and the need of immediate action so that potential of each workers will able to optimized by producing more k-workers (knowledgeable and highly skilled workers) in preparation by welcoming 4.0 industry.
6. Acknowledgement
This research was supported by the grant from Faculty of Education, Universiti Kebangsaan Malaysia (GC-2019-002).
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