Informal workplace learning and Employability: The Mediating Role of Competency Development among Financial Sector Employees in Bhutan.

Abstract

Banking institutions, which essentially control the financial sector in developing countries like Bhutan, face a dynamic and competitive environment due to rapid global connectivity. While technological innovations are creating more opportunities to deliver financial services, employees need to constantly learn and develop their skills to meet changing demands. Therefore, it is becoming increasingly important to address informal learning in the workplace when they do not have time to attend formal training programmes. The aim of the study is to examine the impact of Informal Workplace Learning on employability, taking into account the mediating role of Competency Development.

The study uses a quasi-explanatory sequential mixed method. The study surveyed five banks in Bhutan with 512 respondents and interviewed 10 sector heads using the semi-structured interview method to answer the research question and test the hypothesis. Structural equation modelling and thematic analysis were used to analyse the two types of data.

The analysis of the data showed that informal workplace learning has a statistically significant impact on employability (β=0.30) and that Competency Development fully meadiated this relationship (β=0.13). However, learning goal orientation and self-directed learning orientation did not influence the relationship between informal workplace learning and competency development. It can be concluded that employees in the Bhutanese banking sector practise informal workplce learning and that this contributes to the development of competencies, which in turn improves employability.

New technologies, social media, the diffusion of sensors, communications, and processing power into everyday objects has led to creation of new forms of organization structures, increased global interaction, and increased demand in the ability to interact with data, multitask, and flexibility. As a result, professionals engaged in such work continuously confront these situations and therefore, require augmenting and extend their competencies. Consequently learning has become pervasive throughout the workplace