A Multilevel Analysis of the Effects of Individual and Organizational Level Variables on Perceived Employability of Office Workers in Large Corporations

Abstract

The purpose of the study was to analyze the hierarchical linear relationship between perceived employability, individual characteristics and organizational characteristics of office workers in large corporations. More concretely, the goals of the study were as follows. First, to assess whether there is any difference in the level of perceived employability based on individual and organizational level variables

second, to examine the effect of individual-level variables on perceived employability

third, to examine the effect of organizational-level characteristics on perceived employability

and fourth, to examine the interaction effect of organizational-level characteristics on the relationship between perceived employability and individual-level variables. Individual-level variables were composed of: demographic characteristics (gender and age)

job-related characteristics (total work experience and turnover)

positive psychological capital

proactive personality

social network capital

and openness to changes at work. Organizational variables included fairness in human resource management, supervisor feedback and organizational career management. The survey was undertaken from November 1st to 19th 2015 with a target sample population of 640 people from 32 companies. Data was collected from 618 people belonging to 32 different companies (return rate of 96.6%) of which 522 data was retained for the final analysis (data validity of 84.5%). The results showed that the overall mean score of perceived employability of office workers in large corporations was 3.59. In terms of the hierarchical linear modeling of perceived employability, individual and organizational-level variables, the following findings were found. First, a significant within- and between-group variance in perceived employability existed. Second, it was found that about 15.8% of the variance of perceived employability was between the different companies. Third, in the random coefficients regression model, it was found that psychological capital, social network capital, proactive personality, openness to changes at work as well as age (in the case of those below 30 and those between 30~40, with reference group set to those over 50) had a significant positive effect on perceived employability. Fourth, in terms of organizational-level variables, organizational career management was found to have a significant positive effect. Fifth, the analysis of the interaction effect revealed that supervisor feedback had a negative significant interaction effect while fairness in HR management had a positive significant interaction effect on the relationship between perceived employability and social network capital. Sixth, individual-level variables accounted for about 55.78% of the within-group variance in perceived employability, while 89.83% of the parameter variation in perceived employability was explained by organizational-level variables after controlling the individual-level variables. The major conclusions drawn from the study were as follows. First, the level of perceived employability of office workers in large corporations was revealed to be relatively high implying that these employees who are working in major companies leading the Korean economy had a certain level of competitiveness in the labor market. Second, male rather than female, workers holding a graduate level degree, those over 50 years old, deputy general managers, permanent workers, employees who had served the company for about 11~15 years, those who had accumulated a total work experience of around 11~15 years and employees who had moved to another company for about 1~4 times had reported a higher level of perceived employability. Third, the findings that major individual level variables were found to affect perceived employability are in line with other researches emphasizing the responsibility of individuals in the development of their competitiveness in the labor market. Fourth, the results support the idea that more efforts should be given to better elucidate the role of organizational-level factors in explaining perceived employability which had often been considered only at the individual level. Fifth, the results of this study provides an empirical evidence of the role organizations can play in promoting the level of employability of their employees which can be beneficial for the company. The following recommendations for future research were suggested. First, a more comprehensive approach can be adopted to better grasp which of the organizational-level factors might influence the level of perceived employability. Second, a more targeted sampling (employees belonging to the same department or team) could be recommended for future research seeking to undertake similar studies. Third, perceived employability could be studied with other individual- level variables that are particularly relevant in the workplace context such as work adjustment, job satisfaction and organizational commitment. Fourth, analyzing perceived employability in connection with career related issues will allow us to add a valuable layer to the rich field of study on perceived employability. Fifth, a more narrow focused analysis (focus on aged workers, women or newcomers) would be of significance in better grasping the dynamics and issues surrounding the concept of perceived employability.