by: Ulrich Bauer
- Significance and Definition of Employment and Employability
For every national economy the two indicators employment and unemployment are of high significance but constitute a rather sensitive issue as well. On the one hand, they are an important measure for how a nation and its people are doing economically. On the other hand, employment is of utter importance for the single individual who not only makes their living, but whose employment constitutes an essential component of a meaningful and self-determined life.
In detail, the term employability comprises two main ways of defining; it can either be employment-centred or competence-centred1. The employment-centred definition, which is used by the European Union with regard to ‘Education and Training 2020 (ET2020)’ as a benchmark for tertiary educational attainment by the year 2020 is the following: “ […] the share of employed graduates (20–34 year olds) having left education and training no more than three years before the reference year should be at least 82 %”. Following this, the Bologna Process [a set of agreements between European countries designed to ensure comparability of educational standards — ed.] defines employability as the graduate’s “ability to gain initial meaningful employment or become self-employed, to maintain employment, and to be able to move around within the labour market2. Thus finding employment and employment per se become the focus.
In contrast to the employment-centred definition of employability, the focus of the competence-centred concept lies on the skills and competences which higher education students gain during their studies. The Republic of Austria pursues the competence-oriented approach and particularly emphasises the role of employers. Employers and their organisations are involved in higher education programmes in a consulting role to provide insight into the labour market’s demands and consequently enhance the graduate’s employability3. The advantage of the competence-oriented approach of employability is its transferability to universities and higher education institutions’ study programmes and thus increasing the chances to ensure a market-compliant education and qualification.
- Competence Profile of IEM Graduates
In order to find out what Industrial Engineering and Management (IEM) actually is, the following definition should provide clarification:
“The focus of IEM studies lies in providing students valuable engineering knowledge as well as practical management experience. IEM integrates technological knowledge and management skills, helping students to cope with competitive business challenges while comprehending the underlying technology. Throughout Europe, IEM has many different names — and many different faces.” 4
One of the key questions is to what extent technical and economical subjects should be taught. In the context of a study5, IEM professionals and HR managers in Austria have, independently of one another, specified the ideal ratio as 2/3 technical and 1/3 economics subjects.
It is sensible to distinguish between professional competence/expertise, methodological competence and social competence.
Professional competence/expertise is specialised knowledge that an individual gains through a respective qualification and education, postgraduate/advanced training, and experience.
Methodological competence designates the ability to apply this knowledge and experience, and to master supporting skills. Methodological competence can be gained through formal training — e.g. in seminars, in order to understand principles and theories — practical training and experience.
Social competence is understood as a person’s ability to deal with people as well as personal character traits, values and moral concepts6.
With regard to these three competences, each graduate’s individual competence profile will show different emphases in these areas. Furthermore, the profile will develop significantly in the course of the academic education. In terms of individual employability, it is decisive how well the competence profile fits the requirements of the future employment. The job market for graduates of technological universities can mainly be found in the economic sector.
In the Austrian study from 20145, a balanced and worthwhile ideal ratio of the three competencies was presented.
In a second study7, employers and HR managers were asked for their assessment of the required competence profile and the actual, existing competency profile of graduates. The results (see figure 3) show that the competences present in the areas of professional and methodological competences are slightly below the requirements, yet still within the tolerance limits. However, tertiary education faces a pressing backlog demand concerning social competences.
- Outlook and Professional Opportunities for IEM Graduates
Both graduates and HR managers assess professional career opportunities for IEM graduates in the 2014 study positively. Furthermore, the results show that Industrial Engineer Managers show excellent compliance with prerequisites necessary for leadership positions and are capable of putting them into practice. A fact that proves this statement is that three out of four Industrial Engineer Managers gain a leading position after their fourth occupational change (see figure 4).
All in all it can be said that the education of IEM graduates has been successful and that it is of importance to continue the qualitative development of education and its qualification. Surely this is the best investment into Europe’s future and its people.
Literature
1 EUROPEAN COMMISSION (2014): Modernisation of Higher Education in Europa. Access, Retention and Employability. Eurydice Report. pp.61f.
2 WORKING GROUP ON EMPLOYABILITY (2009): Report to Ministers, Bologna Conference, Leuven/ Louvain-la-Neuve 28–29 April 2009, http://www.ehea.info/Uploads/LEUVEN/2009_employability_WG_report.pdf, Pdf-online source, retrieved 15/11/2014. pp.5
3 EUROPEAN COMMISSION (2014): Modernisation of Higher Education in Europa. Access, Retention and Employability. Eurydice Report, pp.64f
5 cf. BAUER U.; SADEI C.; SOOS J.; ZUNK B. M.; (2014): Ausbildungslandschaft, Kompetenzprofil und Karriereweg von WirtschaftsingenieuerInnen — Studie 2014, BWL Schriftenreihe Nr. 17 des Institutes für Betriebswirtschaftslehre und Betriebssoziologie der Technischen Universität Graz, pp. 35 ff
6 cf. BAUER U.; GANGL B.(2005): Qualifikationsprofil und Berufsbild von Wirtschaftsingenieuren, BWL Schriftenreihe Nr. 9 des Institutes für Betriebswirtschaftslehre und Betriebssoziologie der Technischen Universität Graz, pp. 35
7 cf. BAUER U.; SADEI C. (2015): Studie zur Employability der TU Graz Absolvent/innen 2015, BWL Schriftenreihe Nr. 18 des Institutes für Betriebswirtschaftslehre und Betriebssoziologie der Technischen Universität Graz, pp. 80
About the Author
Introduction:
“Employability is an important educational objective of a study programme. This article describes the main employability-attributes of IEM graduates, based on an Austrian Study.“
Information about the author:
Univ.-Prof. Dipl.-Ing. Dr. Ulrich Bauer is Professor at TU Graz since 1997 and Head of the Institute for Business Economics and Industrial Sociology.
His main fields in teaching are Business Economics, Cost Management and Industrial Sociology. In research he is interested in how to control enterprises, operations and strategy and how to develop and handle human resources.
He has long lasting management and consulting experience in industry and at the university, where he was vice rector for Human Resources, Finance and Portfolio Management for twelve years.
Credit: 52nd issue (spring 2017) of the ESTIEM Magazine
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