Human Capital Factors in the Recent College Graduate: Employers’ Perspective

Abstract

Purpose: This paper aims to identify and evaluate the human capital factors that are expected in fresh college graduates as perceived by employers. The paper also aims to identify the gap between the expectation of the employer and the skills found (reality) in the graduate as perceived by the industry. Further, the study involves estimating if the expectation-reality gap in these factors is different across industries. Design/Methodology/Approach: Qualitative research was undertaken to identify those factors and items within each factor. Then, descriptive research was conducted which involved a survey with several respondents from major industries in the private and public sectors in the Sultanate of Oman. The responses were statistically analyzed using Fisher Exact Test. Findings: The study revealed that the most important Human Capital/ employability factor varies from one industry to another. The most and least important items/ skills in each of the three categories of Human Capital factors were independent across industry types, except for the most important of soft skills. Though the expectation-reality gap existed in the factors, it was found to be independent across industries, except for the Personal Characteristics factor. Practical Implications: Fresh graduates need to understand that their prospective employers are perceiving gaps in their expectations versus reality. Being cognizant of this gap and working for self-improvement is imperative not only for improving the probability of employment with the favorite employer but also to fuel their career growth. These insights are relevant and useful to other stakeholders as well. By taking action based on these findings, the industry would reap better productivity benefits, and the economy of the nation would improve and propel sustainable development. Also, Higher Education Institutions (HEI) would be able to show better employment rates and student successes. Originality/Value: The findings provide important insights for students and HEI to formulate intervention strategies. The employers would be aware of the gap and thus, design suitable bridge programs to adapt the new graduates to their and the industry needs. Therefore, the government would acquire valuable cues to formulate suitable policies to achieve the nation’s strategic goals.