UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Ly Duy Nam THE IMPACT OF EMPLOYABILITY SKILLS ON FRESH GRADUATES’ JOB OPPORTUNITIES IN HOCHIMINH CITY MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Ly Duy Nam THE IMPACT OF EMPLOYABILITY SKILLS ON FRESH GRADUATES’ JOB OPPORTUNITIES IN HOCHIMINH CITY ID: 22120132 MASTER OF BUSINESS (Honours) Supervisor: Dr Nguyen Quynh Mai Ho Chi Minh City – Year 2014 TABLE OF CONTENTS CHAPTER 1: INTRODUCTION 1.1 Background 1.1.1 Overview of Vietnam’s Economic Growth 1.1.2 Overview of Vietnamese Education and Employability for Labor Market 1.2 Statement of the Problem 1.3 Objectives 1.3.1 General Aim 1.3.2 Specific Aim 1.4 Research Question 1.5 Significance 1.6 The Scope and Limitation CHAPTER 2: LITERATURE REVIEWS 2.1 Concepts and Definitions 2.1.1 Employability 2.1.2 Soft Skills 2.1.3 Technical Skills 2.1.4 Foreign Languages 2.1.5 Work Experience 10 2.1.6 Job Opportunity/Employment Gaining: 10 2.2 Role of Employability Skills toward to Job Opportunities 12 2.2.1 Technical Skills Impact on Job Opportunities 13 2.2.2 Importance of Work Experience toward to Job Opportunities 14 2.2.3 Impact of Soft Skills on Job Opportunities 15 2.2.4 Impact of Foreign Languages on Job Opportunities 17 2.3 Conceptual Framework 18 CHAPTER 3: METHODOLOGY 22 3.1 Research Method and Procedure 22 3.2 Measurement Development 23 3.2.1 3.3 In-depth Interview 23 Questionnaire Design and Pilot Test: 26 3.3.1 Description of Questionnaire 26 3.3.2 Pilot Test 27 3.4 Sampling Method 28 3.4.1 Population and Sample 28 3.4.2 Sample size and sampling 28 3.4.3 Data Analysis Method 29 CHAPTER 4: DATA ANALYSIS AND FINDINGS 31 4.1 Sample Demographics 31 4.2 Reliability Test 34 4.3 Exploratory Factor Analysis 34 4.4 Revised Model and Hypothesis 36 4.5 Correlation and Regression Test 38 4.6 Model Test 40 4.7 Influence of Background study 42 CHAPTER 5: CONCLUSIONS, IMPLICATIONS AND LIMITATIONS 45 5.1 Implications of research 45 5.2 Limitations and Directions for Further Research 47 5.3 Conclusion 48 Reference 50 Appendix 56 GRATEFULNESS I honestly thanks to Dr Nguyen Quynh Mai who always help me to carry out this study I highly appreciate her comment and support because it gave me a chance to learn how to an academic research By the way, I would like to thank to all lecturers of ISB who taught us master program, especially some subjects for carrying out research such as research design and data analysis However, I also don’t forget to thanks to all my friends who help me to collect data Firstly, Ms Le Thanh in University of Social Science Humanities (USSH) industriously came to every class to deliver questionnaires Secondly, Ms Lien who is ISB staff supported me about email address to collect online- data Thirdly, Mr Ngo Cuong in Ho Chi Minh City University of Transport always gives me a hand to this study I also want to thank to all students in ISB, USSH who filled questionnaires At last, my sincere thanks owe to my family, especially my mom, brother and sister who supported me both of physical and mental conditions to complete this study PLAGIARISM STATEMENTS I would like to say that I have done this study by myself, with quantitative research, all material was read to summarize the appropriate main ideas, or keep in “….” with a citation As plagiarism warning, I totally avoid breaking this rule As a student in ISB and economics, I totally disagree with plagiarism LIST OF TABLES Page Table 2.1 Skills under Four Factors Table 2.2 Skills Grouped into Three Factors Table 3.1: Preparing contents for discussion 24 Table 3.2: Measurement Scales from Interview and Reference Sources 26 Table 3.3: Pilot Results 27 Table 3.4: Measurement Scales 27 Table 4.1: Total Variance Explained 35 Table 4.2: Revised Measurement Scales 36 Table 4.3: Items Deleted 36 Table 4.4: Correlations 38 Table 4.5: Descriptive Statistics A 39 Table 4.6: Descriptive Statistics B 40 Table 4.7: Model Summaryb 41 Table 4.8: Coefficientsa 42 Table 4.9: Coding variables to test H5 42 Table 4.10: Model Summaryb 43 LIST OF FIGURES Page Figure 1.1: Vietnam GDP Growth Rate Figure 2.1: Problems Faced by Employers in Hiring Fresh Graduates 16 Figure 2.2: Employers Dissatisfaction with the Key Skills of Young Recruits 17 Figure 2.3: Research Model 21 Figure 3.1: Research Procedure 23 Figure 4.1: Graduated Year 31 Figure 4.2: Gender 32 Figure 4.3: Studying Status 32 Figure 4.4: Working Status 33 Figure 4.5: Background Study 33 Figure 4.6: Foreign Language 34 Figure 4.7: Revised Research Model 37 ABBREVIATION CV - Curriculum Vitae ISB – International School of Business IT - Information technology FDI - foreign direct investment FIA - Investment Agency GDP -Gross domestic product HCMUTRANS – Ho Chi Minh City University of Transport OECD - The Organization for Economic Co-operation and Development USSH – University Of Social Sciences and Humanities UEH – University of Economics Ho Chi Minh City WTO - World Trade Organization ABSTRACT Vietnam education is more and more developing, however majority of students seem to be hard to find a job when graduating The problem is lack of employability skills and unable to meet labor market’s requirements This study’s carried out to determine the important skills which fresh graduates need to apply for a job The research model includes dependent variable “Job Opportunity” and independent variables “soft skills, technical skills, foreign language, work experience and computer skills, which are tested to know our relationship It means that the study is carried out to know how the impact of employability skills on job opportunity The methodology focuses on interviews and surveys to collect information and data The conclusion has been drawn based on random examination from 200 fresh graduates, aged between 22 and 27 years, in Ho Chi Minh City, they were either working or studying accounted for about 70 percent and about 30 percent respectively In multiple linear regression analysis, all independent variables significantly impact on dependent variable Especially, technical skills have strong effect on job opportunity It can be said that their relation is closer than others Moreover, there has no impact of moderating variable on relation between job opportunity and employability skills And this result had no change in case they had different background study It was a good result for psychological and behavioral research The conclusion was that employability skills are very important to find jobs and work In addition, implications and limitations are deeply discussed with both of good and no-good sides The more fresh graduates practice and learn, the more they have high job opportunity KEYWORDS: Fresh Graduates, employability skills, soft skills, technical skills, foreign languages, work experience, impact Ken, S T T & Cheah, Y.Y., (2012) Business Graduates’ Competencies in the Eyes of Employers: An Exploratory Study in Malaysia World Review of Business Research, 2(2), 176-190 Retrieved from http://www.academia.edu/ Kitao, K., Kitao, S (2001) Using the Internet for teaching English Retrieved from http://www.cis.doshisha.ac.jp/kkitao/online/internet/art-use.htm Knight, P., Yorke, M (2000) Skills Plus: Tuning the Undergraduate Curriculum’ Buckingham: Open University Knight, P., Yorke, M (submitted, 2002a) Employability and good learning in higher education: Teaching in Higher Education London: Routledge Falmer Kutner, M.H, Nachtsheim, C.J & Neter, J., (2004) Applied Linear Regression Models 4th Edn New York: McGraw Hill Lam, T.D (2012) Foreign Direct Investment in Vietnam Unpublished Dr thesis, University of Social Sciences and Humanities Retrieved from http://www.bot.or.th/Thai/EconomicConditions/Thai/Northeast/seminarNE/DocLib_seminar 56/Tran%20Dinh%20Lam Foreign%20Direct%20Investment%20in%20Vietnam.pdf Learning and Skills Council (2008) Impact of Learning on Employability (Publication No LSC-PNAT-080019) Retrieved from http://dera.ioe.ac.uk/8851/1/Impact_of_Learning_on_Employability_-_main_report.pdf Lees, D (2002) Information for Academic Staff on Employability Unpublished Dr thesis, University of Exeter Retrieved from http://webcache.googleusercontent.com/search?q=cache:RqEC54ht2PoJ:wwwnew1.heacademy.ac.uk/assets/documents/resources/database/id188_Information_for_Acade mic_Staff_on_Employability.rtf+&cd=5&hl=en&ct=clnk&gl=vn Liling, L (2010) The Perceptions Held by Employers of Chinese Graduates’ Employability Skills Unpublished PhD thesis, Capital University of Economics and Business Retrieved from file:///C:/Users/ITVIFON/Downloads/The%20Perceptions%20Held%20by%20Employers% 20of%20Chinese%20Graduates%C2%A1%C2%AF%20Employability%20Skills.pdf Littlejohn, D & Watson, S (2004) Developing Graduate Managers for Hospitality and Tourism International Journal of Contemporary Hospitality Management, 16(7), 408-414 doi: 10.1108/09596110410559096 Lowden, K., Hall, S., Elliot, D D & Lewin, J (2011) Employers’ perceptions of the employability skills of new graduates London: Edge Foundation 52 Martin, E & McCabe S (2007) Part-time Work and Postgraduate Students: Developing the Skills for Employment? 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future Hospitality Graduates, Journal of Hospitality and Tourism Education, 10(1), 13-17 doi:10.1080/10963758.1998.10685167 Work experience recruitment survey, University of Manchester and UMIST Careers Service (2004) Retrieved August 15, 2014, from http://www.asetonline.org/PDFs/Placement%20Conversion%20Rates%20Study1.pdf Yorke, M (2004) Employability in higher education: what it is – what it is not York, UK: The Higher Education Academy 55 Appendix Appendix 1: Results of reliability test for all concepts in pilot research Item Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected ItemTotal Correlation Cronbach's Alpha if Item Deleted Soft skills(Cronbach’s alpha: 0.834) SS1 SS2 SS3 SS4 SS5 SS6 SS7 SS8 25.714 25.514 25.443 25.529 25.786 25.657 25.171 25.686 13.685 13.848 13.642 13.151 13.707 13.301 14.84 14.132 0.616 0.534 0.638 0.646 0.479 0.654 0.351 0.618 0.807 0.818 0.805 0.802 0.827 0.802 0.841 0.809 0.594 0.451 0.499 0.556 0.525 0.686 0.733 0.719 0.697 0.713 0.516 0.514 0.637 0.689 0.692 0.541 0.671 0.657 0.715 0.596 0.779 0.783 0.761 0.809 0.591 0.812 0.69 0.651 0.82 0.746 0.788 0.811 Technical skills(Cronbach’s alpha: 0.754) TS1 TS2 TS3 TS4 TS5 15.171 14.857 14.686 15.329 15.386 5.043 5.342 5.407 4.688 4.559 Work Experience (Cronbach’s alpha: 0.731) WE1 WE2 WE3 7.686 7.514 7.343 1.581 1.587 1.388 Foreign Languages (Cronbach’s alpha: 0.828) FL1 FL2 FL3 FL4 11.071 10.929 10.714 10.657 3.256 3.43 3.685 3.881 Job opportunities (Cronbach’s alpha: 0.835) JO1 JO2 JO3 JO4 14.4 14.04 13.92 13.96 5.167 4.623 4.827 6.29 56 Appendix 2: Descriptive statistics of demographics No Description Frequency Percent Graduated Year (only for University Degree) Graduated after 2012 Graduated around 2010– 2012 Gender Male Female Working status Be working Finding a job Studying status Studying master program Studying second degree Others Background study Economics and management field Technical, scientific and natural field Social, humanity and law field Other fields Foreign languages English Chinese French Japanese 79 108 42.2 57.8 49 138 26.2 73.8 117 135 62.6 72.2 35 77 75 18.7 41.2 40.1 71 38 36 19.3 38 41 20.3 21.9 183 97.9 4.8 2.7 2.1 Appendix 3: Reliability No Factors Cronbach’s Alpha coefficient N of Items Soft Skills 0.807 Technical Skills 0.792 Work Experience 0.722 Foreign Languages 0.806 Job Opportunity 0.779 57 Appendix 4: Results of reliability test for all concepts in main research Item Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected ItemTotal Correlation Cronbach's Alpha if Item Deleted Soft skills(Cronbach’s alpha: 0.807) SS1 SS2 SS3 SS4 SS5 SS6 SS7 SS8 25.61 25.535 25.337 25.471 25.701 25.599 25.005 25.567 11.089 11.035 11.128 10.605 10.652 10.736 12.081 11.107 0.558 0.503 0.525 0.623 0.527 0.591 0.306 0.538 0.78 0.788 0.785 0.77 0.785 0.774 0.815 0.783 0.599 0.506 0.566 0.601 0.601 0.746 0.773 0.755 0.744 0.745 0.493 0.597 0.545 0.692 0.564 0.632 0.634 0.602 0.683 0.57 0.751 0.767 0.728 0.781 0.613 0.659 0.608 0.467 0.71 0.686 0.715 0.78 Technical skills(Cronbach’s alpha: 0.792) TS1 TS2 TS3 TS4 TS5 15.064 14.85 14.567 15.123 15.176 5.275 5.461 5.29 4.786 4.662 Work Experience (Cronbach’s alpha: 0.722) WE1 WE2 WE3 7.513 7.316 7.235 1.81 1.475 1.514 Foreign Languages (Cronbach’s alpha: 0.806) FL1 FL2 FL3 FL4 10.615 10.508 10.326 10.31 2.937 2.939 2.92 3.075 Job opportunities (Cronbach’s alpha: 0.779) JO1 JO2 JO3 JO4 10.652 10.299 10.401 10.39 3.346 3.243 3.134 4.024 58 Appendix 5: Communalities Initial (SS2) (SS3) (SS4) (SS8) (TS2) (TS3) (TS5) (WE1) WE2 WE3 FL1 FL2 FL3 TS4 Extraction 1 1 1 1 1 1 1 0.625 0.748 0.722 0.599 0.809 0.784 0.782 0.669 0.763 0.687 0.679 0.771 0.61 0.731 Appendix 6: Rotated Component Matrixa Rotated Component Matrixa (FL2) Ability to comprehend verbal communication (FL1) Ability to present ideas effectively (FL3) Ability to comprehend reading materials 0.645 (SS8) Analytical / research skills 0.843 0.77 0.684 (WE2) Work experience in part-time job 0.849 (WE3) Work experience in full-time job 0.752 (WE1) Work experience in inter-ship 0.75 0.679 (TS4) Ability to apply theories to fulfill job requirements 0.856 (SS2) Writing skill to express the ideas (TS5) Ability to develop a new object or a new idea Component 0.69 59 (TS2) Computer basic skill was ability to use office software (Word, Excel, PowerPoint) 0.865 (TS3) Internet application was ability to use internet to support your job 0.803 (SS3) Ability to work cooperatively with others 0.833 (SS4) Belief in themselves or their own abilities 0.783 Appendix 7: Total Variance Explained Total Variance Explained Initial Eigenvalues Component Total % of Variance Extraction Sums of Squared Loadings Cumulative % 2.412 60.308 60.308 0.681 17.028 77.336 0.495 12.369 89.705 0.412 10.295 100 Total 2.412 % of Variance 60.308 Cumulative % 60.308 Appendix 8: Component Matrixa Component JO2 0.831 JO1 0.799 JO3 0.796 JO4 0.671 60 Appendix 9: Coefficients Unstandardized Coefficients Model B (Constant) FL TS SS WE CS BT Std Error 1.652 1.152 1.328 1.008 0.835 0.681 -0.37 -0.028 0.295 0.245 0.241 0.249 0.24 0.04 Standardized Coefficients T Sig Beta 0.313 0.274 0.216 0.169 -0.097 -0.038 Collinearity Statistics Tolerance VIF 1.433 0.153 0.606 1.651 4.499 4.116 3.464 2.733 -1.545 -0.695 0 0.001 0.007 0.124 0.488 0.659 0.751 0.765 0.737 0.984 0.606 1.518 1.332 1.307 1.357 1.016 1.651 Appendix 10: Questionnaires I am Nam, studying master of business program in international school of business (ISB) cooperating between western Sydney university and university of economics Hochiminh city I am studying the impact of employability skills on fresh graduated students which helps them know clearly about specific skills and knowledge needing in their jobs These questionnaires aim to learn about assessment of fresh graduates’ employability skills Your graduation year (for bachelor degree): …………… If you graduated before 2010, you stop here If your age is more than 27 year old, you stop here Your current status: (you can choose more than one if it is applicable), Please specify your job: Working Looking for a job Studying master program Studying second degree Your major of bachelor degree: 61 Please evaluate your following skills Soft skills Very weak Your verbal ability to convey information Your writing skill to express the ideas Your ability to work cooperatively with others Belief in yourself or your own abilities Your ability to plan tasks and monitor progress Your ability to identify problems and devise solutions Your work commitment to or to support someone or group/ organization Your ability to develop a new object or a new idea Weak Very good Average Good 5 5 5 5 5 5 5 5 Technical skills 10 11 12 13 Your professional knowledge to perform on the job Your ability to use office software (Word, Excel, PowerPoint) Your ability to use internet to support your job Your ability to apply theories to fulfill job requirements Your analytical and research skill Work experience 14 15 16 Experiences you gained from internship Experiences you gained from parttime jobs Experiences you gained from current jobs 62 Foreign Languages skills Pls specify which foreign language you are most confident now (You can choose more than one if it is applicable) Other ……………… ……………….(please specify) Please evaluate your language ability (for the language thatability you have chosenyour in above) Your to present idea 17 effectively 18 19 20 Your ability of academic writing Your ability to comprehend reading materials Your ability to comprehend verbal communication 5 5 Job opportunity 21 I can easily find a job as I want 22 I’m qualified for many job opportunities 23 There are many available job opportunities for me In short, 24 Your ability to find new job and suitable for you: Very low Low Average High Very high 25 Your employability skills and knowledge for job are: Very bad Bad Average Good Very good Thanks very much for your help 63 Wish you best in your study and job  Appendix 11: Bảng câu hỏi Tôi Nam, học chương trình thạc sỹ Kinh tế trường Kinh tế Quốc tế (ISB), trực thuộc Đại học Kinh tế Tp HCM kết hợp với đại học Western Sydney Tôi nghiên cứu kỹ đáp ứng công việc sinh viên trường nhằm giúp họ nhận biết rõ kỹ kiến thức cụ thể cần thiết cho công việc.Bảng câu hỏi nhằm mục đích tìm hiểu kỹ năng đáp ứng công việc sinh viên trường tham gia khóa học khác Phần thông tin chung Năm bạn tốt nghiệp (đối với đại học): * Nếu bạn tốt nghiệp trước năm 2010, bạn dừng lại Tuổi bạn ?* (Nếu bạn lớn 27 tuổi, bạn dừng lại đây) Tình hình công việc bạn * (Bạn chọn nhiều 1) ệc ệc ọc cao học ọc văn Chuyên ngành * ực kinh tế, quản lý ực kỹ thuật, khoa học tự nhiên ực xã hội nhân văn, Luật ực khác Giớ Nữ Vui lòng đánh giá kỹ bạn sau: Các kỹ mềm Khả diễn đạt để truyền đạt thông tin Kỹ viết để diễn đạt ý tưởng Khả phối hợp làm việc với người khác Sự tự tin vào thân Rất yếu 1 1 Yếu 2 2 Trung bình 3 3 Tốt 4 4 Rất tốt 5 5 64 Khả lập kế hoạch giám sát tiến trình thực Khả nhận định vấn đề đưa giải pháp Sự tận tụy công việc hỗ trợ người nhóm Khả phát triển vấn đề ý tưởng 5 5 5 Khả chuyên môn: Kiến thức chuyên ngành để làm việc 10 Khả sử dụng tin học (Word, Excel, PowerPoint) 11 Khả sử dụng internet để phục vụ cho công việc 12 Khả vận dụng lý thuyết để đáp ứng đòi hỏi công việc 5 Trung bình Nhiều Rất nhiều 13 Kỹ tìm kiến phân tích liệu Kinh nghiệm làm việc Không có Rất Kinh nghiệm có trình thựctập Kinh nghiệm có làm việc bán 15 thời gian Kinh nghiệm có làm việc toàn 16 thời gian Kỹ ngoại ngữ Vui lòng chọn ngoại ngữ mà bạn thấy giỏi tự tin (bạn chọn nhiều một) 14 Ngôn ngữ khác: ……………… ……………… Vui lòng đánh giá khả ngoại ngữ bạn mà bạn chọn Khả thuyết trình ý tưởng cách 17 hiệu 18 Khả viết văn bản, báo cáo 5 Rất dở Dở Trung bình Giỏi Rất giỏi 5 19 Khả đọc hiểu tài liệu 20 Khả nắm bắt hiểu giao tiếp Hoàn toàn không đồng ý không đồng ý Không có ý kiến đồng ý Hoàn toàn đồng ý Cơ hội nghề nghiệp 65 Tôi tìm kiếm công việc mà muốn cách dễ dàng 22 Tôi có đủ lực để có nhiều hội việc làm Các hội công việc dành cho 23 nhiều đa dạng 21 5 Tóm lại, 24 Khả tìm kiếm công việc mới, phù hợp với bạn là: Rất thấp Thấp Trung bình Cao Rất cao 25 Kỹ kiến thức bạn so với yêu cầu công việc là: Rất Kém Trung bình Tốt Rất tốt Chân thành cảm ơn giúp đỡ bạn Chúc bạn thành công học tập, công việc  66 ...UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Ly Duy Nam THE IMPACT OF EMPLOYABILITY SKILLS ON FRESH GRADUATES’ JOB OPPORTUNITIES IN HOCHIMINH CITY ID:... collect information and data The conclusion has been drawn based on random examination from 200 fresh graduates, aged between 22 and 27 years, in Ho Chi Minh City, they were either working or studying... technical skills fully productive In the other study, Bloom (1956) suggests three kinds of learning skills such as Cognitive skills consisting of knowledge and the development of intellectual skills;