Advances in Economics, Business and Management Research, volume 218

Proceedings of the International Conference on Economics and Business Studies (ICOEBS 2022)

Improving Student's Working Readiness by

Increasing Soft Skills, Self-Efficacy, Motivation,
and Organizational Activities
Diah Rahmadani1, and Ahmad Mardalis*2
1,2
Universitas Muhammadiyah Surakarta
*
Corresponding author. Email: [email protected]

ABSTRACT

This study aims to analyze and describe the effect of soft skills, self-efficacy, motivation, and organizational
activities on the students’ work readiness of the Faculty of Economics and Business (FEB), Universitas
Muhammadiyah Surakarta (UMS), Indonesia. It employed a quantitative approach. The samples amounted to
100 respondents by using the Slovin formula. The sampling technique employed purposive sampling. The data
analysis technique applied SEM-PLS of which calculation used the Smart PLS 3.0 program. The evaluation
analysis of the Partial Least Square (PLS) model employed the outer model and the inner model. The results of
data analysis show that 1) soft skills have a positive and significant effect on job readiness. (2) Self-efficacy has
a positive and significant effect on job readiness. (3) Work motivation has a positive and significant effect on job
readiness. (4) Organizational activity has a positive and significant effect on work readiness. Therefore, the
students’ work readiness can be increased by using soft skills, self-efficiency, motivation, and organizational
activities.

Keywords: working readiness, soft skills, self-efficacy, motivation, organizational activities.

1. INTRODUCTION [3]. According to [4] the elements of HR management

are the laborers who work for the company. Human
In the current era of globalization, economic resources play an important role in overcoming various
growth and development are very rapid. It can highly matters such as work readiness. Competency is a
take an impact on job seekers, employment, and labor prerequisite that an individual has to be able to perform
qualifications. Work is an individual’ need to be able to a job. Only competent people will get a decent job so it
keep surviving. Whatever work a person does, in other will have an impact on living standards. If someone
words, he or she will do it to fulfill his or her daily life. does not get a job, it will have an impact on the high
Students’ ability of human resources needs unemployment rate and he or she will not be able to
improving and developing by taking and education. The meet his or her daily wants and needs. The Central
purpose of human resources development is to improve Statistics Agency (BPS) data reported stated that the
the effectiveness and efficiency of work in achieving the number of unemployed people in Indonesia at the end of
goals of the organization’s work programs [1]. 2020 reached 9.77 million people. Several levels of
The existence of human resources in the current education of SD (Elementary School), SMP (Junior
global era is very crucial. One of the important High School), SMA/SMK (Senior High
functions of HR is a technical application within the School/Vocational School), Diploma 1, 2, and 3, and
company [2]. If a company wants to survive in the Bachelor have a significant impact on the high
competition, it must have competitive human resources unemployment rate. The Open Unemployment Rate

Copyright © 2022 The Authors. Published by Atlantis Press International B.V.

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 Advances in Economics, Business and Management Research, volume 218
(TPT) data reported the unemployment rate of in organizational activities. By preparing them, they will
bachelor’s education reached 7.35% [5]. Thus, the have good work readiness and can compete in the
unemployment rate among university graduates is very workforce.
high. It is due to low ability or skill that cannot meet the The objectives of this study are to analyze and
required workforce qualifications. Therefore, students describe the effect of soft skills, self-efficacy, work
need to develop abilities and skills such as soft skills, motivation, and organizational activity on wor
self-efficacy, and work motivation. readiness.
Work readiness is an individual’s capacity to
perform a job for his or her abilities in the workforce. Hypothesis
These abilities can be knowledge and expertise as well
as good behavior and attitude. Someone who can H1: Soft skills have a positive and significant effect on
increase his or her knowledge, a person will be ready to work readiness.
enter the workforce and perform a job as well as H2: Self-efficacy has a positive and significant effect on
possible [6]. work readiness.
Soft skills are an individual's ability in which he
can communicate and collaborate with other individuals H3:Work motivation has a positive and significant
(interpersonal and intrapersonal skills) so that he or she effect on work readiness.
can work optimally [7]. Soft skills are very crucial in
building a person's workability so that he or she will be H4: Organizational activity has a positive and
more self-confident in performing a job and can adapt significant effect on work readiness.
himself or herself to a work environment. They play an
important role in determining the progress of one's 2. METHOD
achievement and readiness in the workforce. Every
college graduate must have these skills for applying or The study used a quantitative approach. It
looking for a job after graduating from the education employed primary data obtained through questionnaires
level [8]. with the Google Form. The populations were the
Self-efficacy is a person’s belief in abilities used students of the Faculty of Economics and Business
for coping with a situation or condition [9]. It refers to (FEB), Universitas Muhammadiyah Surakarta (UMS) in
the belief in the extent to which an individual assumes 2018. The sampling employed purposive sampling. The
his or her ability to carry out a task or perform a job to samples of 100 respondents used the Slovin formula.
achieve certain goals results [10]. It can affect how a It employed a Structural Equation Modeling
person acts or behaves and does a task or performs a job (SEM) approach using a path diagram (flowchart). The
well to achieve certain goals. Similarly, it deals with SEM analysis used Partial Least Square (PLS) with the
problems or difficulties that an individual faces. Having calculation process of the SmartPLS 3.0 software
self-efficacy can increase ability or readiness in the application program. The research test used an
workforce [11]. evaluation of the outer model, consisting of validity
Work motivation is the reason one has for acting (convergent validity and discriminant validity),
or behaving in a particular way. It is a force encouraging reliability (composite reliability and Cronbach's alpha),
an employee to act and behave [12]. A person's and multicollinearity tests. Evaluation of the inner
motivation for work is the reason that can encourage model comprised coefficient determination (R2), effect
individuals’ enthusiasm to enter the workforce. It can size (f2), normed fit index (NFI) test, and hypothesis
arise from within or outside themselves [13]. testing (t-test and Direct Effect).
Individuals’ motivation will arise because of the interest
and desire from within themselves. This desire is 3. RESULTS AND DISCUSSION
usually in the form of expectations for making a better
future living when individuals have completed their Figure 1 shows that the outer model analysis is a
studies to get a job. measurement to assess the validity and reliability of the
Organizational activity is an individual’s active model. An external model analysis is carried out to
role or participation in an organization that can have an ensure that the measurements used are valid and
impact on the organization’s goals and can make reliable. The outer model analysis is testing the validity,
changes in positive behaviors and attitudes, comprising reliability, and multicollinearity.
five aspects of responsiveness, accountability, The results of the analysis (see Table 1) show
adaptability, empathy, and transparency [14]. that the 5 variables consist of soft skills, self-efficacy,
Universities must prepare human resources or work motivation, organizational activity, and work
students who can be ready to face the workforce and readiness. Each question item represents each variable
change in an organization [15]. In addition to preparing having a load factor value > 0.6, so each question
students’ soft skills, work efficacy, and motivation as represents a qualified variable.
well as developing their potentials optimally such as Figure 2 reports the inner model analysis of the
interests, talents, and critical, creative, innovative, and power of estimation between latent variables or
productive thinking. Therefore, they must take constructs. Based on Figure 2, the model describes the
opportunities to participate in various activities outside relationship between latent variables (constructs),
academic activities. For example, they take activities exogenous variables consisting of soft skills (X1), self-
inside and outside the university or they must be active efficacy (X2), work motivation (X3), and organizational

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activities (X4) that affect endogenous variables of work
readiness.
AS reported in Table 2, organizational activity
has the highest effect on work readiness of 4,416; work
motivation has the higher effect on work readiness of
4,388; soft skills have the high effect on work readiness
of 3,021. Finally, self-efficacy has a low effect on work
readiness of 2.261.
Based on the results of the description, the
overall model of the variables has a positive path
coefficient value.
Figure 1. Outer Model

Table 1. Convergent Validity Analysis Results

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Figure 2. Inner Model

Table 2. Results of Direct Effect Analysis (Path Coefficient)

Original Sample Standard

T. P.
Sample Mean Deviation
Statistic Value
(O) (M) (STDEV)
Soft Skill → Work
readiness 0.288 0.288 0.096 3.021 0.003
Self-efficacy → Work
readiness 0.201 0.206 0.089 2.261 0.089
Motivation → Work
readiness 0.293 0.294 0.067 4.388 0.000
Organizational activities
→ Work readiness 0.270 0.266 0.061 4.416 0.000

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1. Effect of Soft Skills on Work Readiness 4. The Effect of Organizational Activity on

Work Readiness
Based on the results of the analysis, the soft skill
variable has a positive and significant effect on work Based on the results of the analysis, , it can be seen
readiness. It is confirmed the t-statistical value of 3.021 that the variable of organizational activity has a positive
or > 1.985 means that the effect is significant and the p- and significant effect on work readiness. It is confirmed
value is 0.003 <0.05. This shows that the work readiness that the t statistic value is 4.416 or > 1.985, so the effect
of the FEB students of Universitas Muhammadiyah is significant and the p-value is 0.000 <0.05. This shows
Surakarta in 2018 was influenced by soft skills. Based that the work readiness of the FEB UMS students in
on these results, the H1 can be accepted or confirmed. 2018 is influenced by organizational activity. Based on
This is in line with the research by [16], and [17], these results, the proposed H4 can be accepted. This is
stating that soft skills had a positive and significant in line with the research by [23] and [24] stating that
effect on work readiness. To be able to improve students’ organizational activity is positive and
students’ work readiness, therefore, soft skills can make significant for work readiness. To be able to improve
them have good behavior and attitude. Because of students’ work readiness in organizational activities,
having good communication skills, they will have a therefore, they must be more active in organizations
sense of mutual help, can do the task as well as possible, such as being administrators because participating in
and accept the consequences for mistakes in doing the organizational activities will increase their knowledge
task. In addition, they must be able to adapt to other and abilities.
people and their surrounding environment.

2. The Effect of Self-Efficacy on Work

4. CONCLUSION
Readiness
Based on the results of data analysis, it was found
Based on the results of the analysis conducted, it can
that soft skills, self-efficacy, work motivation, and
be seen that the self-efficacy variable has a positive and
organizational activity have a positive and significant
significant effect on work readiness. It is confirmed that
effect on students’ work readiness. Therefore, university
the t statistic value is 2.261 or > 1.985, so the effect is
managers should pay more attention to and prepare for
significant and the p-value is 0.024 <0.05. This shows
activities outside learning because many can improve
that the work readiness of the FEB UMS
students’ work readiness for facing competition in the
Muhammadiyah Surakarta in 2018 is influenced by self-
workforce.
efficacy. Based on these results, the proposed H2 can be
accepted or confirmed. This is relevant to the research For further studies, researchers will use similar topics
by [18], [19], and [20] that state that self-efficacy had a or themes by adding other interesting variables that can
positive and significant effect on work readiness. To be affect work readiness.
able to improve students’ work readiness, therefore,
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