Graduate Employability in Banking Industry and Career Theory

This literature review analyzes the graduate employability in the banking industry of United Kingdom along with focusing on the ways in which career path theory has implications on the graduates in selecting their desired career path.

Running head: GRADUATE EMPLOYABILITY IN BANKING INDUSTRY
Graduate Employability in Banking Industry and Career Theory
Name of the University:
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1GRADUATE EMPLOYABILITY IN BANKING INDUSTRY
Literature Review
Introduction
The literature review will focus on analyzing the graduate employability in the banking
industry of United Kingdom along with focusing on the ways in which career path theory has
implications on the graduates in selecting their desired career path. The literature review will
also facilitate in analyzing the current marketplace for graduates within the banking industry
over years along with evaluating the employability skills those are highlighted to be present
among the graduates in the previous researches. In addition, this section will also analyze the
existing researches available on graduates’ employability that facilitates them to compete within
international market.
Introduction about the bank of international settlements
Chavez, Camello and Pamplona (2016) explained that the Bank of International
Settlements in Basel was established in order to improve the financial stability along with having
the purpose to improve the banking supervision quality all through the world. This bank was
established in serving as a forum for maintaining regular cooperation between all its member
nations on the supervisory matters of banking.
Need to measure credit risk
Jayasingam, Fujiwara and Thurasamy (2018) elaborated on the increased need to measure
credit risk as credit is the major revenue generator for the banks. The goal of credit risk
management is to maximize the risk adjusted rate of return of banks through maintaining credit
risk exposure within acceptable parameters. Banks are required to be highly aware of the need to

2GRADUATE EMPLOYABILITY IN BANKING INDUSTRY
measure credit risks in order to determine that they must hold adequate capital against such risks
along with compensating for the incurred risks.
Background on minimum capital
Jayasingam, Fujiwara and Thurasamy (2018) stated that as per the 3rd Basel Accord
Standards the minimum capital requirements includes tighter capital requirements of banks those
are divided into Tier 1 and 2 that is further segmented into Common equity tier 1 and additional
tier 1. The minimum requirements within common equity tier 1 encompass equity instruments
those have discretionary measurements with no maturity. On the other hand additional tier 1
based bank’s minimum capital requirements include unsecured subordinated debt with an
original maturity of at least five years.
Introduction on standardized approach
Sarkar et al., (2016) revealed that standardized approach is referred to the credit risk
measurement techniques that is proposed within Basel 2 capital adequacies riles set by the
banking institutions. Within this approach it is important for the banks to employ rating from the
external credit rating agencies in order to quantify the necessary capital needed to address credit
risk.
Elements of IRB
Lopes, Fonseca and Ferreira (2018) explained that the elements of IRB includes full
disclosure of the research nature along with participant’s involvement, adequate comprehension
on the behalf of the potential participant and the participant’s voluntary choice for participation.
Capital Reserve and IRB Formula's on a table

3GRADUATE EMPLOYABILITY IN BANKING INDUSTRY
Corporate Exposure
Residential mortgage
exposure
Qualifying revolving
retail exposure (credit
card product)
CVA Concept
Nirmala and Kumar (2018) explained the CVA risk as one of the major unexpected losses
source for banks at the time of great financial crisis. In order to calculate the capital charges
related with the default risks along with CVA risks serves as the measurement of the underlying
transactions exposure within a portfolio in which the netting concept has an important function.
Monte Carlo Simulation
Lopes, Fonseca and Ferreira (2018) explained Monte Carlo Simulation as a probability
simulation technique that is employed to understand the risk impact along with uncertainty
within project management, cost and other forecasting models. This simulation facilitates in
carrying out risk analysis through building models related with possible results through
substituting several values those have inherent uncertainty.
Graduate Employability
Chavez, Camello and Pamplona (2016) explained graduate employability as strategic
direction of the “Department for Employment and Education” that is focused on improving the

4GRADUATE EMPLOYABILITY IN BANKING INDUSTRY
employability of the graduates as an aspect of broader strategy in order to extend the skills base
within United Kingdom. Such interest within employability is deemed to be related with human
capital innovation theories along with career theory that facilitates in increasing economic
performance of the nation. Collet, Hine and Du Plessis (2015) added that employability is
concerned with the capability of the graduates to attain initial employment, maintain
employment along with attaining new employment in case needed.
These researchers also stated that for a graduate, employability is relied on the assets in
terms of skills, attitudes and knowledge along with the ways in which such assets are deployed
and used. Employability is observed to rely on the presentation of assets to the potential
employers along with the context within which the individual works such as personal
circumstances along with labor market. In contrast, Iyer and Dave (2015) stated that
employability is a complex concept to define because of its multi-dimensional concept and along
with that there is less need to differentiate among the factors associated with attaining a job along
with factors related with development of work.
These researchers also elaborated that employability is not just graduate students making
deposits in skills bank but is the concept also analyses synergic combination of personal skills,
qualities of different types along with increased subject understanding. Jackling and Natoli
(2015) elaborated that from the employers’ viewpoint, graduates employability can be
understood as the propensity of these students to exhibit attributes those are anticipated by the
employers to be vital for future effective functioning of the company. In addition, it is also
gathered that the employability skills are segmented into four major areas including traditional
intellectual skills like logical argument and critical evaluation, major skills such as

5GRADUATE EMPLOYABILITY IN BANKING INDUSTRY
communication, personal attributes such as self-reliance and motivation and knowledge attained
by companies regarding the ways they work.
Career Theory and its Implication in Choosing Career Path
Jayasingam, Fujiwara and Thurasamy (2018) revealed that there are numerous career
development theories and they come with four major disciplines such as differential psychology
is interested within occupations and work, personality psychology considers individuals as
organizers of their own experiences, development psychology is related with the life course and
sociology focuses on the occupational mobility. Lopes, Fonseca and Ferreira (2018) explained
through their research that the career development theory developed by “Donald E. Super” is
understood as a self-concept career theory that focuses on the ways in which careers of graduates
unfold over the lifespan. They also explained that career choice of the graduates is impacted by
complex along with multi-faceted psychological, biological, sociological along with cultural
factors. Nirmala and Kumar (2018) added that as per this theory, the graduates select their career
that facilitates them to express their self-concepts and based on such facts, the graduates’ self-
concept becomes highly stable so does their career choices. These researches evidenced that
graduate employees have several abilities, personalities along with self concepts and along with
that they are highly qualified for several occupations revealed on such attributes that changes
with experience and time.
Sarkar et al., (2016) clarified in their research that the career development theory explains
that “Trait and Factor” career development theory is the major foundation for the career
counseling programs. Moreover, implementation of this theory in analyzing student’s preferred
selection of career assessment instruments along with the study of graduates’ job requirements.
In addition, this theory is also focused on individual traits that does not account for changes in

6GRADUATE EMPLOYABILITY IN BANKING INDUSTRY
interests, values, skills, personality and achievement over the graduate’s course lifetime. Saito
and Pham (2018) also stated that the career theories account for reactions among seemingly valid
constructs that facilitates in fully explaining outcomes that are common to several associated
theories. These researchers also stated that the career development theory is comprehensive and
useful and it should include necessary variables that have attained relatively less attention
important for better career management for the graduate employees.
Current Marketplace for Graduates in Banking Industry
The labor market is used to explain the interaction between the employers requiring
employees. There are two forces driving this market, which include demand and supply. A
complex association exists between demand and supply of labor. The individuals searching for
jobs are classified under supply, while the employers providing jobs are categorized under
demand. The youth unemployment level in UK is deemed to be low. The yearly average rate of
underemployment for the individuals aging between 21-24 years is 6.7%. Thus, the young job
seekers of the nation do not face long spells of unemployment (Wilson & Ortiz, 2017). Certain
reasons have contributed to favorable labor market outcome and one of them is the education
system of the nation.
However, there has been shortage of staffs in the UK banking industry. In the second
quarter of 2018, UK experienced fall in job vacancies and rise in rate of unemployment. The
business administration has vast range of organization, planning, controlling and directing
pertinent business operations as well as behavioral decisions. The graduates have brought more
innovation and creativity within the sector. There is massive opportunity in the UK marketplace
for the graduates owing to increased labor demand. However, there are few parts of the economy
that are witnessing shortage (Sarkar et al., 2016). This issue is more evident in the banking sector

7GRADUATE EMPLOYABILITY IN BANKING INDUSTRY
of the nation encountering acute shortage of skilled graduate staffs. Therefore, it is necessary for
the UK government to formulate an integrated system of training and education. In this context,
it is noteworthy to mention that if the shortage of skilled graduates continues in future, it would
be extremely troublesome to complete the banking projects. The students completing their
graduations expect to find jobs in large cities due to the intense competition (Saito & Pham,
2018).
The individuals in the economy are not undertaking courses in applied skills despite the
presence of considerable training and education facilities. Since the local individuals are
obtaining higher education, they have no intention of working for lower level jobs. The small
and medium-sized cities in UK have numerous vacant positions; however, the graduate students
are not willing to accept those jobs (Jaaffar et al., 2016). These cities pay emphasis on the
banking industry. However, the graduates do not like working in medium and small-sized cities
of UK. In banking sector, the graduates possessing positive mentality, honesty, enthusiasm,
teamwork, integrity and management skills are required to be recruited (Oliver, 2015).
Moreover, the industry seeks to find graduates having basic knowledge as well as effective
technical skills. The UK market is exposed to the foreign graduates as well and the industry
looks forward to recruit individuals having effective knowledge.
Summary
The literature review focused on analyzing the current marketplace for graduates within
the banking industry over years along with evaluating the employability skills those are
highlighted to be present among the graduates in the previous researches. It has been gathered
from the literature review that employability is observed to rely on the presentation of assets to
the potential employers along with the context within which the individual works such as

8GRADUATE EMPLOYABILITY IN BANKING INDUSTRY
personal circumstances along with labor market. The literature review section also explained that
for a graduate, employability is relied on the assets in terms of skills, attitudes and knowledge
along with the ways in which such assets are deployed and used. In addition, it also revealed that
the career development theory explains that “Trait and Factor” career development theory is the
major foundation for the career counseling programs. Moreover, implementation of this theory in
analyzing student’s preferred selection of career assessment instruments along with the study of
graduates’ job requirements.

9GRADUATE EMPLOYABILITY IN BANKING INDUSTRY
References
Chavez, N. H., Camello, N. C., & Pamplona, M. A. I. (2016). Employability of Engineering
Graduates from 2013 to 2015: Basis for a Proposed Student Development Program. Asia
Pac. J. Educ., Arts Sci., 3(4), 27-39.
Collet, C., Hine, D., & Du Plessis, K. (2015). Employability skills: perspectives from a
knowledge-intensive industry. Education+ Training, 57(5), 532-559.
Iyer, V. M., & Dave, K. (2015). Industry's role in employability. Industrial and Commercial
Training, 47(3), 151-158.
Jaaffar, A. H., Ibrahim, H. I., Annuar, K., Shah, M., & Zulkafli, A. H. (2016). Work-Integrated
Learning and Graduate Employability Skills: The Employers’ Perspective. The Social
Sciences, 11(21), 5270-5274.
Jackling, B., & Natoli, R. (2015). Employability skills of international accounting graduates:
Internship providers’ perspectives. Education+ Training, 57(7), 757-773.
Jayasingam, S., Fujiwara, Y., & Thurasamy, R. (2018). ‘I am competent so I can be choosy’:
choosiness and its implication on graduate employability. Studies in Higher
Education, 43(7), 1119-1134.
Lopes, F., Fonseca, I., & Ferreira, C. (2018, September).An Industry-Oriented Master's Degree
in Electrical Engineering-Automation and Communications in Energy and Industrial
Systems-Operation and Industry Cooperation Review.In 2018 28th EAEEIE Annual
Conference (EAEEIE) (pp. 1-9).IEEE.

10GRADUATE EMPLOYABILITY IN BANKING INDUSTRY
Nirmala, K., & Kumar, S. S. (2018). The Impact of Basic, Higher-Order Thinking and Affective
Skills on Graduate Employability. IUP Journal of Soft Skills, 12(1), 7-28.
Oliver, B. (2015). Redefining graduate employability and work-integrated learning: Proposals
for effective higher education in disrupted economies. Journal of Teaching and Learning
for Graduate Employability, 6(1), 56.
Saito, E., & Pham, T. (2018). A comparative institutional analysis on strategies that graduates
use to show they are ‘employable’: a critical discussion on the cases of Australia, Japan,
and Vietnam. Higher Education Research & Development, 1-14.
Sarkar, M., Overton, T., Thompson, C., & Rayner, G. (2016). Graduate employability: Views of
recent science graduates and employers. International Journal of Innovation in Science
and Mathematics Education (formerly CAL-laborate International), 24(3).
Wilson, I., & Ortiz, S. (2017). Solution Based Learning in Higher Education: Enhancing
Employability Skills.