The Impact of Competency Certification on Workers

Suryadi, Ari Yuliastuti, Yuniarti Tri Suwadji, and Emi Syarif

Center for Employment Research and Development, Manpower Ministry of Indonesia,

Indonesia

yuniarti_ts@yahoo.com,sy.emmy@yahoo.com

Abstract. This research aims to analyze whether there are differences in the

characteristics of workers who have competency certificates and those who do

not have certificate. The sample in this study consisted of: workers who have

competency certificates from LSP are 85 people while workers who do not have

competency certificates are 79 people. MANOVA analysis (Multivariate

Analysis of Variance) is used to answer the question whether there are differences

in the characteristics of workers who have a competency certificate and those

who do not have a competency certificate. It can be seen that competence has a

significant effect on the variables Y

, Y

and Y

. This can be seen from the

significance test value which is smaller than 0.05. These variables are: Y

Competency certification gives confidence in completing tasks; Y

= Always

applies the knowledge possessed in carrying out the assignment; Y

= Very

skilled in technical work; Y

= Being able to learn the task in a short time before

it is done.

Keyword: Competency standard · LSP · Manova

1 Introduction

In the 2005-2025 Long-Term Development Plan, improving the quality of human

resources (HR) is one of the focuses of development. The large number of Indonesian

workers, if quality and utilization can be optimized, it will be a strong base capital for

development in driving economic growth and national competitiveness in the domestic

and global market. Thus, all institutions related to improving the quality of human

resources in various sectors and regions, need to be optimized for their use and

synergized with their program activities.

Improving the quality of human resources related to aspects of education and

competence, has been regulated in Law No.20 of 2003 concerning National Education

and Law No. 13 of 2003 concerning Labor. Both of these laws mandate competency-

based human resource quality improvement. Based on Government Regulation No.

23/2004, the National Professional Certification Agency (BNSP) has the task of

carrying out competency certification as an integral part of the system that functions

downstream and ensures labor competency, which in its implementation is carried out

through licensing to the Professional Certification Institute (LSP).

In developing a competency-based workforce there are three main pillars namely

national work competency standards, competency-based training programs and

competency certification (Figure 1). Competency standards reflect the needs of the job

578

Suryadi, ., Yuliastuti, A., Suwadji, Y. and Syarif, E.

The Impact of Competency Certiﬁcation on Workers.

DOI: 10.5220/0010520900002900

In Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting (MIICEMA 2019), pages 578-584

ISBN: 978-989-758-582-1; ISSN: 2655-9064

market created by the Business World / Industrial World (DUDI). Competency-based

standardized education/training program to produce students / trainees who master the

competencies created by education and training institutions. Competency certification

refers to competency standards to ensure the competencies of students / trainees

implemented by LSP.

The challenges in the era of globalization and competitive markets, demand

competitiveness in the form of human resource development. Competency certification

is one of the important factors in supporting company productivity and competitive

advantage. HR development is a demand for every organization to align training

programs with organizational strategies. In addition, the development of human resources

requires a synergic blend of aspects of learning and aspects of performance To realize

efforts to improve learning and performance, a competency standard is needed.

Fig. 1. Pillars of competency-based workforce development.

The issue of certification is hotly discussed by various groups, especially those

involved in the professional development process of education, health, finance,

government and society. The issue of certification is one of the methods used to develop

quality or the quality of human resources. HR competency development is increasingly

needed to be able to compete in the global era. In order to compete in the industry,

competency improvement is needed both in terms of human resources (HR) and

organization. HR practitioners are required to further enhance professionalism in

managing HR in the organization. HR must have competence according to the

established standards (Law 13 of 2003) that work competency is the work ability of

every individual which includes aspects of knowledge, skills and work attitudes.

This study aims to analyze whether there are differences in the characteristics of

workers who have a competency certificate and those who do not have a certificate.

Research hypothesis:

: The average variable Y

1,2 ... 11

shows no difference in the X variable

: The average variable Y

1,2 ... 11

shows the difference in the X variable

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579

Decision criteria if the numbers sig. > 0.05, then H

is accepted if the number sig. <0.05,

then H

is rejected.

2 Literature Review

The advantages of obtaining competency certification according to [1], for companies:

1. Facilitate recruitment and selection personnel; 2. Facilitate placement and

assignment; 3. Facilitate remunesation settings; and compensation; 4. Easy

arrangement career development and education and training; 5. Increase company

productivity; 6. Improve safety in place work; for labor : 1. Increase mobility and

competitiveness; 2. Increase recognition of competence possessed; 3. Improve career

prospects; 4. Improve personal safety labor; 5. Increase self-confidence and pride in

the profession; for the government and the community : 1. Increase effectiveness and

efficiency job market; 2. Increase work competitiveness in the market global work; 3.

Improve quality and company productivity; 4. Increase protection and labor welfare; 5.

Increase effectiveness and efficiency training 6. Encouraging economic growth national

and regional and 7. Reducing the unemployment rate.

Workers are assets for the nation and state, especially for those who are able to

demonstrate their abilities through certification of their competence. The theory used

in this research is Human Capital Theory which is a theory that believes the importance

of HR for the success of an organization [2]. In the theory of Human Capital

management, humans become assets or capital. Human Capital Management is an

effort to manage and develop human ability to achieve higher levels of performance.

The emergence of the view that knowledge as a company resource is very strategic,

based on the fact that knowledge can be used to develop company competitiveness that

is valuable and difficult to imitate by competitors and not replaced by other resources.

With the knowledge possessed by an organization or the knowledge through humans

within it, human beings are made as visible capital (Human Capital). In its

development, humans are not only used as one of the resources but also as a driver of

resources. Thus, resources that are competent and appropriate to the job or position

given to them so as to produce optimal performance, need to be prepared.

Some research on competencies has been carried out, according to [3] the

knowledge management process mediates the relationship between IT competence and

market performance. Furthermore, a study conducted by [4] shows the positive

influence of the role of human resource competencies on employee job satisfaction in

the telecommunications sector of Islamabad and Rawalpindi, Pakistan. Findings [5]

reveal that there is a positive relationship between competence and individual

performance. The results of the study [6] shows that the implementation of

competency-based human resource management, knowledge management,

organizational culture and organizational performance has been well achieved.

Furthermore [7] states that the use of competency frameworks as a basis for workplace

learning initiatives has been applied in organizations in general.

Research results [8] shows that by investing in the development of their career

competencies, employees contribute to organizational culture, abilities, and

connections. Furthermore, research conducted [9] aims to determine the effect of

training, competence and motivation on employee performance at the Social Security

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580

Agency for workers (BPJS Employment) in the Banten region of Indonesia. The results

of this study concluded the coefficient of determination is explained by competence,

training, and motivation. Two main meanings of the term competency have been

identified by [10], one referring to the output, or results of the training namely

competent performance. Other definitions that refer to the inputs, or underlying

attributes, are needed for someone to achieve competent performance.

3 Research Methodology

To answer the question whether there are differences in the characteristics of workers

who have a competency certificate and those who do not have a competency certificate,

MANOVA (Multivariate Analysis of Variance) analysis is used. MANOVA is the

development of ANOVA, which is a statistical method for analyzing the relationship

between several independent variables and some dependent variables. The

characteristic of MANOVA is that the independent variable can be more than one or

one, but the dependent variable must be more than one. In MANOVA Analysis, the

analysis conducted must meet the following assumptions: assumptions of multivariate

normal distribution of data, homogeneity of covariance variance matrices, and the

correlation between variables used.

for X and Y variables individually

 For factor X

= workers who do not have competency certification

= workers who have competency certification

 For the Y factor

= my knowledge increased when I worked in this field

= I already have enough knowledge to carry out the work

= I can analyze my work

= competency certification that I have gives me confidence in completing

assignments

= I always apply the knowledge I have in carrying out my assignments

= I am very good at technical work

= I am able to learn the task in a short time before it is done

= I am able to complete the task faster than the specified target

= I can always achieve more than 100% of the work target specified

= I always correct work before submitting it to my supervisor

= I dare to make decisions related to my workresearch methodology

The research took place in the provinces of East Java, Central Java, West Java and

DKI Jakarta with the consideration that in these four regions competency certification

was more developed as indicated by the highest number of LSPs (Lembaga Sertifikasi

Profesi) in the four provinces. The time used in research between April and September

2018. The sample in this study consisted of: workers who have competency certificates

are 85 people while workers who do not have competency certificates are 79 people.

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581

The sampling technique uses a purposive sampling. This technique is also known as

non-random sampling technique, which is not random sampling.

4 Research Result

The company wants its employees to show their best performance. This can be realized

if the company has employees with the best competencies and places them according

to their competencies. Thus, analysis is needed to see the effect of competence on

employee characteristics. The following can be seen the results of statistical analysis

using the Manova Model to find out whether there are differences in characteristics

between employees who have a competency certificate and those who do not have a

competency certificate.

Table 1. Variable codes in data processing.

Table 2. Box’s test equality of covariance Matrices.

Table 3. Multivariate significance test.

The data in Tables 1, 2, 3 and 4 are the results of data processing using SPSS

software. From these results it can be seen that competence has a significant effect on

the variables Y

, Y

and Y

. This can be seen from the significance test value which

is smaller than 0.05. These variables are: Y

= Competency certification gives

confidence in completing tasks Y

= Always applies the knowledge possessed in

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582

carrying out the assignment Y

= Very skilled in technical work Y

= Being able to

learn the task in a short time before it is done

The most basic benefit of competency certification is ensuring capability in one

area. To get it, there is a series of processes that must be passed, which requires a person

to have certain abilities, special work attitudes, and understanding in one area. The

Table 4. Tests of between subject effects.

process is often not easy. People who follows, it inevitably have to undergo all demands

so that they are indirectly trained to be capable in one particular field. If someone is

able to achieve a certificate of competence, it is certain that the person will be

competent in the field they are in. Thus, the person has a plus compared to the others

because it has been proven capable in one particular field of expertise.

By obtaining a certificate of competence, one's confidence can be lifted. The person

becomes confident of one's own abilities in one area of expertise. Confidence factor

can determine a person's future. Armed with a certificate of competence, someone will

be more confident in carrying out their duties. That confidence is what ultimately can

bring the best results. A person may have a special skill, but without a certificate that

is owned, the ability may not necessarily be trusted by other parties. For permanent

employees, proof of certification can also increase confidence in carrying out office

duties. His proven ability can add confidence that he has an advantage in completing a

task. It is an honor for him to be declared competent by the certification body in

accordance with established standards.

5 Conclusion

Professional certification measures a person's ability in the occupied field. The results

of competency certification test can make someone realize their skills are still lacking

or according to the standard. If someone is not competent, then that person still has to

The Impact of Competency Certiﬁcation on Workers

583

keep learning. From this research, it can be seen that competence has a significant effect

on the variables Y

, Y

and Y

. This can be seen from the significance test value

which is smaller than 0.05. These variables are: Y

= Competency certification gives

confidence in completing tasks Y

= Always applies the knowledge possessed in

carrying out the assignment Y

= Very skilled in technical work Y

= Being able to

learn the task in a short time before it is done.

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