Impact of Employability Skills on Employee Performance of Business Graduates in Nepal: Structural Equation Modeling Approach

Abstract

Employers have challenges merely to stay in business in today's highly competitive industry. To meet these challenges, they require workers with not only technical capabilities, but also employability qualities that allow them to adapt to a rapidly changing sector. The employability skills of business graduates are critical in assessing their potential to increase the organization's performance. The goal of this study is to analyze and factorize the components and dimensions of employability abilities that impact the employability and performance of business graduates. The study adopts a descriptive survey-based research approach, in which data are collected from a sample of respondents using a self-administered survey questionnaire. The convenience sampling method is used to obtain a sample size of 422 respondents. The statistical techniques used for data analysis are Descriptive Statistics, Confirmatory Factor analysis and Structural Equation Modeling. The results of the Confirmatory Factor Analysis and Path Analysis showed that critical thinking and problem-solving skills, technology skills, organizational skills, and continuous learning skills had a significant impact on employee performance. The study highlights the importance of these skills in enhancing employee performance and the need for organizations to focus on developing these skills in their employees. The findings of this study can be useful for human resource managers and organizations in developing training programs to improve the skills and performance of their employees.