Despite an annual influx of programming graduates from Information Technology (IT)-focused educational institutions, software companies struggle with the persistent challenge of finding qualified candidates for entry-level programming roles. In this context of skill shortage, this study explored the crucial issue of skill mismatch of IT graduates, by assessing the employers’ expectations and observations vital for entry-level programming positions. This study employed a quantitative survey approach to delve into this skills mismatch issue. Professionals within 128 software development companies in Lalitpur were surveyed, all holding managerial positions and possessing programming experience. Utilizing a Likert scale questionnaire distributed through Google Forms, these industry experts rated their expectations and real-world observations concerning the specific skills requisite for entry-level programming positions. The analysis of expectations of skills showed that learning attitude (personal), basic concepts of programming (technical), and organizational culture fit (interpersonal) were considered the most important skills. Personal or college projects and skills in version management and testing were considered equally important. The analysis of skill expectations versus observations uncovers noteworthy disparities, mostly observed in personal skills, with expectations significantly exceeding actual observations. Almost 50% of the skills were found to have high importance and high gaps, most of which were personal skills. The discrepancy was comparatively less in interpersonal and technical compared to personal skills. Perceptions regarding the alignment of knowledge, skills, and attitude (KSA) were mixed in which most of the respondents indicated moderate to strong alignment between expectations and observations for knowledge and skills, while weak alignment for attitudes. Statistical analysis confirmed significant mean differences between expected and observed skills across all skill categories, reaffirming the existence of a skills mismatch. Notably, employers overwhelmingly advocate ii addressing these skill mismatches through training and development initiatives. These findings shed light on the multifaceted nature of the skills mismatch challenge in Lalitpur’s entry-level programming job market, emphasizing the need for targeted interventions to bridge this gap and foster alignment between employer expectations and the skills of recent graduates. Aligning curriculum with industry needs and designing skill development approaches is of utmost importance to enhance graduates’ workforce readiness, facilitating a smoother transition for entry-level programmer positions.