As economy grows and technology advances around the world, decision making including financial decisions have become more complex (The Committee to Strengthen the Accountancy Profession (CSAP), 2014). It means that a lot of transactions occur every day such as sales, purchases, cash payments and receipts, decision makings and others are related with financial events. Consequently, previous literature highlighted that employers are looking for employees with integrity, good in communication and flexible in discharging the task given (Robles, 2012). Both of the surveyed concluded that the criteria to apply for a job becoming more complex. This is due to the shift from traditional economy to the information society, and technological advancement in economy.
Eventually, being university graduates are no longer a guarantee for them to be hired. This contributes to the main issue which will be discussed in the present study on the skills required by the employers in ensuring their employees can adapt with the environmental changes and sustain their competitive advantage.
In 2015, the Ministry of Higher Education (MOHE) has conducted a survey on graduates of employability. The findings shows that more than 200,000 students graduated every year. From this total, about 25% of the graduates remain unemployed within 6 months after graduation, with the majority of them being the Degree holders. In total, these graduates make up to 35.5% of those who are unemployed in Malaysia. Meanwhile, the number of graduates continues to increase year by year. Hence, graduates are facing the tough competitions in job applications.
As a result, MOHE (2015) identified causes of graduates’ unemployment. The caused are: attitude and characters, lack of communication skills and poor English proficiency. The same survey on employers’ opinion were obtained with regard to the graduate skills. The employers felt graduates are lacked of decision-making skills, multi-tasking skills, problem-solving skills, and adaptability skills. Many stakeholders agree to the above findings and started blaming the Institutions of Higher Learning (IHL). The syllabus and program structure is criticized for failure in providing necessary skills to the graduates. However, it is not fair to put the blame. This is because technical skills may be taught and observed, but not for the non-technical skills. The survey results emphasized more on the non-technical skills.
This issue not peculiar to Malaysia, it is a global issue as highlighted by Awayiga, Onumah, & Tsamenyi (2010). As such, with a highly competitive job market in today’s working environment, employers are looking for graduates who possess more than a degree qualification. In order to support this statement, there are researchers who have concluded that accountants are no longer acting as store keepers while preparing accounts, but their jobs are more professional (De Lange, Jackling, & Gut, 2006). This suggests that the role of an accountant has to be enhanced in order to suit with the new global business environment. In addition to this, there has been much debate between various stakeholders regarding the skills that graduates should have in order to pursue a career in accounting profession (Kavanagh & Drennan, 2008).
Therefore, this study intends to identify the skills that accounting graduates perceive as having the highest priority for successful employment and in turn their perception on the successful employability for accounting graduates. Hence, this particular study utilised the survey method for data collection and the sample comprised of the final year accounting students from public universities in Klang Valley. Although every institution has different learning approach for their students, the objectives are the same. Each institution trained and provided knowledge to their students in order for them to be ready to enter the job market in the future. Therefore, the final year accounting students are the most suitable respondents, apart from the working experience which they have gained during internship.
1.2 RESEARCH PROBLEMS
There is an increase debates on the issues of skills required by employers in today’s working environment.
Based on a report from CSAP (2014), employers are looking for “graduates with professional qualification, good communication skills, and have relevant market experience” (or internship) (CSAP, 2014, p.11). CSAP findings show 35% of the employers identifies the accountants with the skills needed to become a professional accountants are still below expectation. In addition, employers also suggested the way to improve what is lacking by enhancing communication skills at school and university level and strengthen the universities’ syllabus by including job-readiness skills to all graduates. In addition to the CSAP (2014) report, the MOHE has also raised the issue of unemployment and it has become the main concern for the IHL.
These have become the most important challenges for universities and colleges to meet the standards on graduate employability (Suleman, 2016; Wongsurawat, 2016). The IHL should be alert on the needs of economy and consequently restructure their programs to guarantee that they are producing graduates for the working world (Altrawneh, 2015; Suleman, 2016). Moreover, according to Altrawneh (2015) accounting education must include technical skills (specific/pure knowledge) and comprehensive set on non-technical skills to ensure accounting graduates are successful in employment. These skills are crucial to accounting graduates because the government also aims to reach higher number of qualified accountants among the Bumiputera by year 2030. This is because, currently Malaysia has only 36,000 accountants out of the total population in Malaysia (CSAP, 2014), which 32,448 are Malaysian Institute of Accountants (MIA) member as at August 2016. This amount of accounting professionals is too small therefore insufficient to support the economic growth.
Based on the demand patterns of accountant in Malaysia as being reported by CSAP (2014), most major employers from all industries such as Big4 accounting firms, international worldwide corporations, and public listed companies would like to recruit accounting graduates to fill up the vacancies in their organizations. All of these employers are looking for graduates who have taken professional programs, understand technical concepts, and possess good communication skills.
According to Bhanugopan & Fish (2009) graduates are expected to exercise various skills in discharging and handling the tasks given. Although employers are looking for graduates with basic knowledge in accounting, they are also expecting graduates to have knowledge in business awareness and real world (Kavanagh & Drennan, 2008).
Hence, due to the issues of unemployment among graduates and lack of skills possessed by the accounting graduates for successful employability, this situation provides an opportunity for this study to be carried out. Therefore, this study intends to identify the other crucial skills required by accounting graduates for successful employment and their perception on a successful employability among accounting graduates.
1.3 MOTIVATION OF STUDY
Based on Altrawneh (2015), employability is not just simply represents academic achievement, but graduates need to continuously revitalize and update their skills and knowledge during their working life. What this means is that graduates should have a package of skills in order to be employed. However, all graduates are different in terms of their skills, knowledge, experience, attitude and behavior, as well as job opportunities. Therefore, their ability to be employed varies from one graduate to another graduate (Wongsurawat, 2016). Besides, employability is a key determinant for success in career (Clarke & Patrickson, 2008). In order for graduates to be successful, they should ensure that they possess various skills so they are ready to accept any tasks given by their employers.
Furthermore, there have been a lot of arguments between various stakeholders about the skills that graduates should acquire in order to pursue their career in accounting profession (Kavanagh & Drennan, 2008). The skills include technical skills and non-technical skills (Jackling & De Lange, 2009; Awayiga et al., 2010; Nilsson, 2010; Klibi, Mohamed Faker; Oussi, 2013; Altrawneh, 2015). According to Awayiga et al. (2010) and Klibi, Mohamed Faker; Oussi, (2013), technical skills consists of general skills related to the field of study such as accountancy skills; numeracy skills (mathematical and statistical application); knowledge in information technology (IT); risk analysis; measurement; reporting and compliance with legal provision.
In contrast, for today’s workplace, practicing only the technical skills are no longer sufficient. Therefore, graduates are also required to have non-technical skills for their success in accounting career (Kavanagh & Drennan, 2008; Jackling & De Lange, 2009; Awayiga et al., 2010; Robles, 2012; Klibi, Mohamed Faker; Oussi, 2013). Logically, non-technical skills are essential in order to maintain productive performance in today’s labor market, and at the same time, current and future business leaders also emphasizes on the importance of non-technical skills (Robles, 2012). Besides, non-technical skills are also known as soft skills by researchers (Nilsson, 2010; Robles, 2012; Wongsurawat, 2016) or known as generic skills by other researchers (De Lange et al., 2006; Dacre et al., 2007; Klibi, Mohamed Faker; Oussi, 2013; Altrawneh, 2015).
Hence, it is well-defined that the motivation of the study is to identify the technical skills and non-technical skills that the accounting graduates perceive as having the highest priority for successful employability as well as to examine if there is any relationship between technical skills and non-technical skills in ensuring the success of employability among the accounting graduates based on students’ perception.
1.4 SCOPE OF STUDY
This study employs a quantitative method (survey questionnaire) to achieve the objectives of the study. This is the most suitable approach to be used as this study intends to examine if there is any relationship between technical skills and non-technical skills for successful employability. This study covers the students’ perceptions on successful employability and the skills (technical skills and non-technical skills) that they perceive as being the most crucial for successful employability. As such, the study will concentrate on data collection from the final year accounting students in public universities, which also include their perception about the success in accounting graduates employability and skills required for successful employability. Therefore, this study focuses solely on students’ perceptions which are gathered from those who are currently pursuing Bachelor of Accountancy in their final year of study, hence no data taken from postgraduate students and employers’ expectations.
A collection of data gathered from 132 final year accounting students for the purpose of this study and these sample students are assumed to be good representatives of accounting graduates in general. This is due to the fact that they have already gone through internship programs for one semester before their final year. Thus, it can be assumed that they have learned and noted about the most important skills that they should possess for successful employability.
This study is restricted to an investigation of the selected technical skills such as accounting, taxation, auditing and accounting information system and several non-technical skills which includes interpersonal skills: communication and teamwork; personal skills-attitudes and behavior. In conclusion, this study encompasses procedures in identifying skills required for accounting graduates for successful employability.
1.5 RESEARCH QUESTIONS AND RESEARCH OBJECTIVES
In today’s workplace, it is important for all graduates to possess job-ready skills. These skills include not only technical skills but also non-technical skills. Besides, these skills are important as the ticket for graduates to be hired by employers (Clarke & Patrickson, 2008; Robles, 2012). Therefore, the issues on lack of skills and unemployment have contributed to the present study’s objectives and research questions. This study attempts to answer the following research questions:
1. What are the skills (technical and non-technical skills) that accounting graduates perceive as having the highest priority for successful employability?
2. What are the accounting students’ perceptions on successful employability?
3. Are there any significant correlation between technical and non-technical skills for success in accounting graduates employability?
Therefore, the main objectives of this study include:
1. To identify the technical and non-technical skills that accounting graduates perceive as having the highest priority for successful employability.
2. To recognize accounting students’ perceptions on successful employability.
3. To examine the correlation between the technical and non-technical skills for success in accounting graduates employability.
1.6 SIGNIFICANCE OF THE STUDY
As mentioned in the previous section, the objective of this study is to examine the correlation between the technical skills and non-technical skills for success in accounting graduates employability. This should be based on accounting students’ perceptions on successful employability. Hence, this study might be helpful to enrich the literature relating to the current issue specifically in accounting education in Malaysia context.
In addition, based on the report by CSAP (2014), employers are seeking for accounting graduates who have (1) broad skills and not limited to finance and business only, (2) market relevant knowledge, (3) non-technical skills including problem solving skills, IT knowledge, (4) strong written and communication skills and (5) professional qualification. Therefore, to meet employers’ requirement, IHLs need to ensure its graduates are skillful (Kavanagh & Drennan, 2008; Awayiga et al., 2010; Robles, 2012; Altrawneh, 2015). In the past, a degree qualification would ensure the graduates with suitable jobs, but things are different for today’s graduates. Findings from this particular research, would provide graduates a clearer picture regarding the skills they need in order to succeed in employment.
In the meantime, employers and IHLs could increase their awareness of the need for them as role players in providing inputs for graduates. Besides, quality of human capital will be enhanced when graduates possess marketable skills upon entering the industry.
1.7 ORGANISATION OF THE DISSERTATION
This dissertation consists of five chapters. In the first chapter, the discussion on the background of study, research problems, motivation of study, scope of study, research questions and research objectives, and significance of study have been detailed out. The second chapter will briefly discuss on the literature works used for this study, including technical skills and non-technical skills which are important for successful employability. Second chapter will also discuss on the framework of the study, adaption on theory used and hypotheses development. The third chapter will briefly highlight the methodology and research design of this study. Furthermore, the fourth chapter will briefly explain on the survey result and survey analysis based on the inferential analysis result. Last but not least, chapter five will include on the overall result findings as well as the implication and contribution of this study.