Competence, Qualifications and Employment Placement: Evidence From An Industrial City In Indonesia

Abstract

This study examines the effects of competence and qualifications on employment placement and investigates the mediating role of competitiveness in the context of Cilegon City, one of Indonesia's major industrial centers. Despite rapid industrial development, local workers continue to experience difficulties in securing employment, indicating a mismatch between labor market requirements and workforce characteristics. A quantitative approach was employed using a survey of 202 human resource personnel from 115 companies operating in Cilegon City. Data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The findings reveal that competence and qualifications have positive and significant effects on employment placement and competitiveness. However, competitiveness does not significantly affect employment placement and does not mediate the relationship between competence, qualifications, and employment placement. These findings suggest that recruitment and placement decisions in industrial labor markets tend to prioritize direct indicators of human capital, particularly competence and formal qualifications, rather than relative competitiveness among job seekers. The study contributes to the human resource management literature by providing evidence from an industrial city context and offers practical implications for workforce development policies and industry-oriented training programs.