Human capital level

Human capital refers to the skills, knowledge, and experience accumulated by an individual viewed in terms of their value, or cost, to an organisation or country (Keeley, 2007). Higher levels of human capital increase the likelihood of being employed in the future (van der Merwe, 2016). The elements of human capital that may impact on graduate employment include educational institution, academic achievement, readiness for practice (RFP), and employment experience. These elements are discussed below.

2.2.1.1 Educational institution and academic achievement.

Higher levels of educational attainment are associated with higher employment rates and higher relative earnings, more social engagement, and better health (AIHW, 2017a; OECD, 2018a; Purcell et al., 2013). In Australia a higher education qualification allows an individual to gain an advantage in a competitive labour market and open up new professional opportunities, especially for careers where a qualification is required for employment or practice (ABS, 2014), such as nursing.

Grade Point Average (GPA) is a numerical calculation, weighted by credit points, of the mean of the grades received by a student over a defined study period (Ferris, 2010; University of Technology Sydney, 2018), and is used as a measure of academic

GPA was a significant predictor of full-time job placement post-graduation (Schalk, 2015). Data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey show that the perceived quality of the tertiary educational institution may also impact on securing employment post-graduation (van der Merwe, 2016).

The results of previous research suggest that human capital factors, such as education level, institution, and GPA, do have the ability to predict more positive

employment outcomes for tertiary graduates (Schalk, 2015; van der Merwe, 2016), and therefore may impact on nursing graduates’ employment outcomes. In Australia, nursing is a nationally regulated profession, with RNs requiring a Bachelor of Nursing or equivalent degree prior to registration (ANMAC, 2012; Queensland Government, 2009). In the UK where nursing is also a regulated profession, the university from which an ECN graduated was influential in employment outcomes (Harris et al., 2013). However, the impact of academic achievement or academic institution on employment outcomes for Australian ECNs has not been explored.

2.2.1.2 Readiness for practice.

Readiness for practice (RFP) may also play a role in employment outcomes. Career readiness, or RFP, is the extent to which graduates are perceived to possess the skills and attributes that render them prepared for success in the workplace (Caballero & Walker, 2010). It is recognised as indicative of tertiary graduate potential in terms of job

performance and career advancement, emerging as a criterion for graduate recruitment (Caballero & Walker, 2010; Walker & Campbell, 2013). A national data set in the United States found that students' labour market outcomes were impacted by career readiness (Wu, 2018).

With regards to the ECN population, there is an abundance of literature describing the views of ECNs on their RFP prior to the commencement of the RN role (Cantlay et al., 2017; Casey et al., 2011), during the first year of employment (Milton-Wildey, Kenny, Parmenter, & Hall, 2014; Morrow, 2009), and on RN perceptions of ECNs’ RFP (Missen, McKenna, & Beauchamp, 2016). Historically, in the ECN population, RFP has often been described as a deficit (Romyn et al., 2009), with a lack of consensus about expectations and criteria to assess it (Lofmark, Smide, & Wikblad, 2006; Wolff, Pesut, & Regan, 2010). For some scholars readiness for practice for ECNs includes critical thinking, clinical knowledge, communication and technical skills, professionalism, and time management

(Berkow, Virkstis, Stewart, & Conway, 2009; Wolsky, 2014). However, other descriptions include a more theoretical underpinning, where being ready for practice means ECNs have an understanding of current realities and future possibilities, with a balance of doing,

knowing, and thinking (Wolff, Regan, Pesut, & Black, 2010).

This lack of consensus may be attributed to the differences in rating RFP.

Graduating nursing students often rate their readiness for practice highly (Cantlay et al., 2017; Casey et al., 2011), although this optimistic view is not often reflected by

experienced nurses (Missen, McKenna, & Beauchamp, 2018). Despite this inconsistency in rating and definition, ECNs’ RFP has been found to uniquely predict work environment outcomes such as job satisfaction and work engagement (Walker & Campbell, 2013). Although previous research suggests RFP influences wider graduate recruitment

(Caballero & Walker, 2010; Walker & Campbell, 2013; Wu, 2018) and ECNs perceptions of work environments post-employment, its impact on employment outcomes in the ECN population is not yet known.

2.2.1.3 Employment experience.

Employment experience, especially current employment, has positive impacts on gaining employment in the future (Chartered Institute of Personnel and Development, 2017; van der Merwe, 2016). To maintain employment individuals accrue human capital through the development of skills, knowledge, and experience (Prowse, 2012; van der Merwe, 2016). As well as preventing economic hardship, employment can improve health and wellbeing, reducing the risk of deprivation and social exclusion (AIHW, 2017a).

Internationally, there is evidence to suggest that nursing students seek employment in health-related settings (Salamonson & Andrew, 2006), and that ECNs perceive that undergraduate employment will have positive impacts on securing employment after graduation (Phillips, Esterman, Smith, & Kenny, 2013; Phillips, Kenny, Smith, & Esterman, 2012). Phillips et al. (2012) describe how undergraduate nursing students are strategic in their choices of employment during their degree, perceiving that this will help secure employment in their chosen area post-graduation. Added to this, undergraduate nursing students who work in health-related fields report higher confidence and perceive this work experience will support them during the graduate nurse transition period (Phillips et al., 2013; Phillips et al., 2012). Given the lack of longitudinal follow-up, it is not yet known if

this positive perception actually results in increased employment as a nurse post- graduation.