//
2023 ZIBS Forum, on the theme of "Innovating for the Future: The Frontier in Business Excellence", was successfully held on January 13. The forum focused on topics such as data intelligence, environmental science, financial technology, digital innovation, and corporate restructuring. It shared the latest research findings, innovative discoveries, and practical experiences related to cutting-edge business developments, providing insightful perspectives and strategies for the sustainable development of the global business, technology, and education sectors.
During the Young Scholars Forum, ZIBS Assistant Professor Jomel Ng shared reflections on the topic of "Human Capital Effects in the Job Search Process for New Labor Market Entrants: A Double-Edged Sword?". Here's the review:
Human capital refers to the knowledge, skills, and abilities acquired by individuals. Job seekers with higher educational qualifications, relevant work experiences, and technical capabilities have an advantage in the labor market. We grow up in a society where we continuously pursue high educational qualifications and learn new skills and knowledge so that we can gain a significant advantage in the labor market and increase our employment success. However, little is known about how human capital may affect job search success for job seekers. We looked into the literature on job search and found that there is not a very strong positive relationship between human capital and job search success.
The present empirical findings on the relationship between human capital and job search outcomes are ambiguous. Primary studies have found that human capital in the form of self-reported skills is positively related to how fast job seekers gain employment, but it is not related to reemployment speed, as measured by Wanberg et al. (2002). There are small and unstable correlations between human capital and both job search behaviors and outcomes (Kanfer et al., 2001; Van Hooft et al., 2021).
There is no conceptual or theoretical explanation for the small and mixed effects of human capital. Researchers are not very clear on why there is not a strong relationship between human capital and job search success, in contrast to employment success;
Throughout our lives, we pursue a high level of human capital investment. Given the prominent role that human capital plays in terms of employment, it will also play a prominent role when it comes to job searching.
How does human capital affect job search cognitions, behaviors, and proximal outcomes for new labor market entrants over an extended job search period?
For this research, we utilize two prominent psychological theories:
Goal system theory
In the context of job search, job seekers are embedded in a motivational network comprising goals, means, and their interconnections. As an equifinal goal, there are multiple means for job seekers to reach their employment goal. One is to spend time on job search activities, and another is to continuously enhance themselves to increase their attractiveness in the labor market;
Control-process theory
As a proximal indicator of job search success, job seekers aim to achieve as many interview invitations as possible and will work towards achieving this ideal state by engaging in job search activities, such as sending resumes and improving interview skills. They continuously assess whether they are close to achieving this goal by considering how many interview offers they have received recently. This creates a psychological feedback loop mechanism.
I propose that human capital will positively predict within-person employment efficacy, meaning it will positively predict how confident job seekers are regarding their employment. Looking back at goal system theory, job seekers with higher human capital (higher knowledge, skills, and educational qualifications) should be more confident about their ability to achieve employment goals.
Explanation: Increased goal expectancy
propose that human capital will positively predict within-person employment efficacy, meaning it will positively predict how confident job seekers are regarding their employment. Looking back at goal system theory, job seekers with higher human capital (higher knowledge, skills, and educational qualifications) should be more confident about their ability to achieve employment goals.
Explanation: Increased goal expectancy
Even though human capital can boost job seekers' confidence in gaining employment, it may negatively predict the effort they put into job search activities. We propose an argument from Hypothesis 1, called the assurance effect, where job seekers, feeling confident about achieving their employment goal, may choose not to put in much effort into job searching. Another possible explanation is the interference effect, where limited time and cognitive resources lead to a prioritization of either job search activities or human capital investment. Job seekers may opt to focus on studying or working rather than actively looking for a new job.
Explanation: Assurance effect from increased goal expectancy. Interference effect from attentional and cognitive constraints.
Hypotheses 2 and 3 received support.
Human capital interferes with self-regulatory behaviors in job search.
Negatively predicted within-person job search intensity;
Negatively moderated the within-person relationship between employment efficacy and job search intensity.
In short, this study contributes to research by revealing the mixed effects of human capital on job search success. While it indeed has positive effects on interview invitations, it also interferes with how diligently job seekers expend effort on job search activities.
*This article is based on the speech made by ZIBS Assistant Professor Jomel Ng at ZIBS 2023 Forum. The views and opinions expressed in this article are those of the speaker and do not necessarily reflect the views or positions of ZIBS.
Jomel Ng
Assistant Professor
Dr. Jomel Ng is an Assistant Professor at ZIBS. She obtained her doctorate from the National University of Singapore and prior to joining ZIBS, she has worked as post-doctoral fellow at National University of Singapore and Singapore Management University. Within the areas of human resources and organizational behavior, her research interests are focused on careers and vocational behaviors, leadership/followership and innovation in organizations. She has published in the Journal of Applied Psychology and Journal of Vocational Behavior, among others.
