CHAPTER 2

REVIEW OF RELATED LITERATURE

This chapter presents the convened relevant literature and studies

after the profound pursue of the researchers from journals, articles, and other

documents that are essential in the discussion of the research topic.

Additionally, this chapter includes the conceptual framework and the definition

of terms that support and helped in the development of this study.

Related Literature

Employability

Employability is a multifaceted concept extensively discussed in

literature from various perspectives, including employers, higher education

institutions, and the graduates themselves (Natalia et al., 2015; Osmani et al.,

2015; Al Asefer & Abidin, 2021). Although a universally accepted definition of

employability is lacking, it is generally understood as a combination of skills,

personal attributes, and competencies that help individuals secure and retain

employment while staying relevant in the labor market (Romgens, 2019).

Specifically, employability includes both the competencies that enhance a

graduate’s ability to secure a job and their role in contributing to economic

and social growth (Jeswani, 2016; Phago & Thwala, 2015).

 The notion of employability has gained prominence in recent years,

with researchers emphasizing its significance in the global context. It is widely

accepted that employability is essential not only for securing jobs but also for

fostering personal growth, social mobility, and economic development (Majid

et al., 2020; Cammayo & Gonzales, 2023). Graduates with higher education

degrees have a broader range of employment opportunities and greater

flexibility in career choice, which underscores the importance of academic

qualifications in improving labor market outcomes (Cammayo & Gonzales,

2023). Additionally, higher education helps graduates develop the research

capabilities needed to improve educational practices, advance their careers,

and contribute to societal development (Bueno, 2017; Daguplo et al., 2019).

These elements contribute to higher employability, career advancement, and

professional networking, which are crucial for success in today’s competitive

labor market (Sumande et al., 2022).

However, the need for further research on graduate employability

remains, especially in light of the evolving demands of the modern labor

market (Hooley et al., 2017). This calls for a re-evaluation of higher education

systems to better align with the employability needs of graduates, ensuring

that they are equipped with the skills and knowledge required by

contemporary employers (Cammayo & Gonzales, 2023).

Labor Market Outcomes

The study of graduate outcomes has long been an essential tool for

evaluating the effectiveness of higher education programs (Colot, 2022). The

graduates should possess the skills and competencies necessary to succeed

in this competitive world (Ramirez, Cruz, & Alcantara, 2014).

Labor market outcomes, which include aspects such as job security,

salary levels, and career advancement, are key indicators of the effectiveness

of higher education in preparing graduates for the workforce. Several studies

have demonstrated the significant influence of obtaining a degree on an

individual’s economic success, particularly with regard to earnings and job

stability (Ehrenberg & Rothstein, 1994). These outcomes are particularly

crucial in the context of the contemporary, competitive labor market, where

securing stable employment and achieving career success has become

increasingly difficult (Hensvik & Skans, 2023; James et al., 2013; Mann &

Huddleston, 2017).

Despite an increase in the number of graduates, many face challenges

in integrating into the labor market due to a mismatch between their

qualifications and the skills required by employers (The World Bank, 2017).

Research by Abel et al. (2014) shows that a college degree plays a pivotal

role in securing desirable job opportunities. Nevertheless, employers continue

to report difficulties in filling vacancies, often citing the lack of employable

skills in graduates (Okolie & Asfa, 2017). This gap between academic

preparation and labor market demands highlights the need for further

alignment between higher education curricula and industry requirements, as

well as the need for enhanced skill development programs within academic

institutions.

Career Trajectories

Career trajectories refer to the paths that individuals take as they

progress in their professional lives. In the accounting profession, many

graduates are uncertain about their career prospects, including the types of

jobs available, salary expectations, and career advancement opportunities

(Corkern et al., 2013). Career trajectories are not always linear, and

graduates must navigate various professional transitions, including job

changes within the industry or even across sectors (Clarkson University,

2020). Career advancement typically involves vertical growth within an

organization, but it may also include lateral moves or industry shifts (Dasun et

al., 2025).

Recent research has emphasized the importance of career decision

self-efficacy and peer support in shaping career trajectories (Choi et al., 2012;

Kleine et al., 2021; Wang et al., 2023). Accounting graduates, like those in

other fields, benefit from networks and mentorship that help guide their

professional decisions and improve their chances for success. This support
system can be instrumental in navigating the often-complex professional

landscape.

Furthermore, career success in accounting is not solely defined by

traditional linear progression. Instead, it involves a combination of upward

mobility, gaining certifications, and the accumulation of specific types of

professional capital (Spence & Carter, 2014). Studies indicate that successful

accountants often adhere to the existing professional norms and practices,

which are essential for career progression in the field (Spence et al., 2015;

Spence et al., 2016). This professional habitus is critical in maintaining

competitiveness and fulfilling career aspirations in accountancy.

Moreover, the importance of tracking career paths through tracer

studies is increasingly recognized. These studies help educational institutions

assess the long-term success of their graduates and identify areas for

program improvement (Cuadra et al., 2019). Accrediting bodies also require

such studies to demonstrate the relevance and quality of academic programs,

ensuring that they effectively prepare graduates for the workforce (Badiru &

Wahome, 2016).

Related Studies

Labor Market Outcomes of Accountancy Graduates

 In today’s competitive and technology-driven labor market, the

development of employability skills among BSA graduates is crucial for

aligning academic preparation with industry demands. Numerous studies

have emphasized the importance of these skills for enhancing graduates’

employability and facilitating their integration into the labor market.

Cammayo and Gonzales (2024) highlighted that BSA graduates often

possess professional licenses and secure employment in their field relatively

easily. However, challenges such as insufficient preparation for the Certified

Public Accountant Licensure Examination (CPALE) and limited exposure to

business immersion, accounting software, and other professional resources

have delayed their employment opportunities. This gap suggests a need for

stronger collaboration between academic institutions and industry partners to

better prepare graduates for the demands of the corporate world.

Bureros et al. (2022) conducted a study focusing on the skill sets of

accountancy graduates, finding that graduates scored highly in fundamental

skills, personal management, and teamwork. However, their findings also

revealed that age-related differences impacted personal management skills,

highlighting the need for targeted interventions for specific demographic

groups. The study recommended that hands-on training and internships be

integral parts of the curriculum to better align students' competencies with the
evolving demands of the accounting profession, particularly regarding

technological advancements.

In a tracer study by Sayson et al. (2024), the employability patterns of

BSA graduates were examined, revealing that skill mismatches often led to

job dissatisfaction. Graduates’ employment trajectories were influenced by

factors such as certifications, parental influence, and immediate employment

opportunities. The study also stressed the importance of institutional values in

fostering ethical and professional behavior and called for curriculum

adjustments to better meet labor market demands.

The role of industry expectations in shaping employability was further

explored by Ismail et al. (2020), who identified key skills, such as proficiency

in accounting software, spreadsheets, and interpersonal communication, as

highly valued by employers. Their findings suggested that higher education

institutions must integrate technological skills and personal attributes into their

accounting programs to enhance graduates' employability.

Similarly, Aris et al. (2013) emphasized the increasing demands of the

accounting profession and advocated for the integration of ethics training and

practical competencies into the accounting curriculum. Their findings, based

on employer feedback, pointed to the need for educational systems to evolve

continuously in response to industry expectations and to prepare graduates

for an increasingly complex and dynamic job market.

 Bongalonta et al. (2024) assessed the effectiveness of accounting

programs in achieving their Program Educational Objectives (PEOs) and

found high employment rates and positive employer feedback. However, they

recommended curriculum updates, stronger industry partnerships, and

enhanced career services to ensure that graduates are better equipped for

the workforce and capable of meeting the demands of employers.

Lastly, Cigar (2017) underlined the importance of essential

employability skills, such as conceptual, technical, interpersonal, and

problem-solving abilities, in bridging the gap between academic preparation

and labor market requirements. The study emphasized the need for

universities and employers to collaborate more closely in designing curricula

that meet current and future industry needs.

Career Trajectories of Accountancy Graduates

The career trajectories of BSA graduates are shaped by various

factors, including their skill development, professional aspirations, and the

opportunities available within the labor market. Several studies have explored

the paths that accountancy graduates take, focusing on their professional

growth, transitions, and challenges along the way.

Andino-González et al. (2024) investigated the perceptions of

graduates regarding their managerial skills and identified three key

categories: personal management skills, fundamental skills, and teamwork

skills. These skills were found to be closely linked to work experience,

employment status, and gender, suggesting that career trajectories are

influenced by a combination of personal and professional factors. Graduates

with stronger managerial skills tended to progress more quickly in their

careers, reinforcing the importance of continuous skill development

throughout one’s professional journey.

In terms of career progression, Ulanday and Toquero (2024) examined

employer satisfaction with the graduates of Mindanao State University. While

employers highly rated personal attributes such as work ethic and

communication skills, they identified practical skills and work experience as

areas needing improvement. The study emphasized the need for ongoing

curriculum enhancement to better align the skills of graduates with the

evolving demands of employers in the accounting field.

The concept of career mobility was also addressed in the work of

Clarkson University (2020), which explored the vertical growth and lateral

transitions in the careers of accounting professionals. The study emphasized

that career trajectories in accounting are not always linear, with many

professionals experiencing lateral moves across industries or within different

sectors of accounting. This highlights the dynamic nature of career paths in

the profession, where flexibility and adaptability are essential for long-term

success.

Spence and Carter (2014) explored the professional development of

successful accountants, emphasizing that these individuals often conform to

the existing professional norms, or “habitus,” within the accounting profession.

They argued that career progression within accounting firms is contingent

upon accumulating specific forms of capital, which can include both technical

and social capital. The study suggested that the professional trajectory of

accountants is shaped not only by their technical skills but also by their ability

to navigate the culture and expectations of the profession.

Finally, the importance of tracking career trajectories through tracer

studies was highlighted by Cuadra et al. (2019), who noted that such studies

provide valuable insights into the success of graduates in their respective

fields. These studies allow institutions to evaluate the effectiveness of their

academic programs and make data-driven decisions to improve the

employability and career outcomes of their graduates.

Research Gap Analysis

The research gap in this study lies in the absence of evidence or

information about the labor market outcomes, career trajectories, and skills

utilization of accountancy graduates of GenSantos Foundation College Inc.

(GFI). Even though the population of GFI accountancy graduates entering the

job market is growing, there is little to no quantitative analysis that focuses on

their professional landscape post-graduation. This study seeks to fill this gap

by addressing the questions mentioned in the statement of the problem.

Specifically, these questions relate to employment in the corporate sector,

securing accounting-related roles, and the utilization of acquired skills and

knowledge attained during their tertiary education in their professional

careers. Additionally, there is a need for research that specifically targets

GFI graduates, as existing studies on accountancy graduate outcomes may

not hold true about the unique context or educational experiences of those

from GFI. This gap in the literature limits the ability to assess the

effectiveness of GFI's accountancy program in preparing students for their

careers and hinders the development of tailored strategies for enhancing their

career development and outcomes.

Conceptual Framework

This research aims to explore and analyze the professional landscape

of GenSantos Foundation College Inc. (GFI) accountancy graduates from the

past three (3) consecutive years (S.Y 2021-2022, 2022-2023, and 2023-

2024). To visually represent the key variables in this study, a conceptual

framework can be developed.

Labor Market Outcomes

 Employability
 Job Placement
 Salary
SkillsLevel
Utilization
 Underemployment
 Skills Application
Career Trajectories
 Competency Matching
GFI Accountancy  Career Progression
Graduates  Current Job Roles
 Job Satisfaction
 Figure 1: The Conceptual Framework

Definition of Terms

Accountancy graduates – Conceptually, accountancy graduates are

individuals who have completed an academic program in accounting, often

leading to a degree (e.g., Bachelor’s or Master’s in Accounting). They are

equipped with knowledge of financial reporting, auditing, taxation, and other

aspects of financial management and analysis. Operationally, accountancy

graduates are the graduates of Bachelor of Science in Accountancy in

GenSantos Foundation College Inc. They are the main respondents of this

study.

Employability – Conceptually, employability refers to the set of skills,

knowledge, and attributes that an individual possesses, which make them

suitable for employment. It encompasses a range of competencies, including

technical skills, soft skills (like communication and teamwork), and

adaptability, that enhance a person’s ability to secure and retain a job.

Operationally, Employability refers to the job placement rates, employment

and the ability of the accountancy graduates in GenSantos Foundation

College Inc. to get hired and be employed within one (1) year right after or a

few months after graduation.

Career Trajectories – Conceptually, career trajectories refer to the path or

progression of an individual’s career over time, which includes their

movements across different roles, industries, or positions, as well as the level

of responsibility and salary growth they achieve. Operationally, this means

the employment path that the accountancy graduates of GenSantos

Foundation College Inc., at what industry they chose to take a role, may it be

in academe, business, government or if they chose to pursue taking the CPA

board exam.

Labor Market – Conceptually, the labor market refers to the supply and

demand for labor, where employers seek workers to fill jobs and workers seek

employment. It is influenced by factors such as the economy, industry needs,

and demographic trends. Operationally, it refers to the fields or industry

where GFI accountancy graduates have their opportunity to get employed. It

is where they compete to get hired after their graduation.

Job Opportunities – Conceptually, job opportunities refer to the availability

of employment positions or vacancies within a labor market, which are open

to qualified candidates. These opportunities are influenced by economic

conditions, industry demands, and regional employment trends. Job

opportunities can range from entry-level roles to senior positions across

various sectors and industries. Operationally, these are the opportunities

that await accountancy students of GenSantos Foundation College Inc. after

they graduate. The available jobs, positions or roles in line with their course

that they might take after graduation.

Job Placement – Conceptually, it refers to the process of matching

individuals with suitable job opportunities based on their qualifications, skills

and preferences. It involves connecting job seekers with employers looking to

fill specific positions, often facilitated by job agencies, career services or

employment programs. Operationally, this one denotes the job position that

accountancy graduates of GenSantos Foundation College Inc. secure after

graduation or months after that. It refers to their work assignment and if it

suits their skills and capabilities.

Salary Level – Conceptually, it is the amount of compensation or wages an

individual receives for performing work or services. Operationally, it is the

amount of wage the graduates have been receiving and it is measured

through a range of benchmarks.

Career progression – Conceptually, this refers to the advancement or

development in an individual's professional career overtime. Operationally, it

refers to the movement of the graduates' career. Did they get a good job
position after graduation, is there a promotion that happened, is there an

increase in their salary or change in career right away?

Underemployment – Conceptually, occurs when individuals are employed

in the jobs that do not fit their skills, qualifications or experience.

Operationally, this refers to the instances where Accountancy graduates took

jobs that were not aligned to their course. It includes working in a field that

does not match their potentials and skills.

Skills Application – Conceptually, this refers to the process of using

knowledge, expertise, and competencies acquired through education or

training in practical, real-world work settings. Operationally, it refers to how

the accountancy students use their skills in their current jobs. Are they

performing tasks effectively that is related to their course? And are they

meeting the standards and satisfaction expected from them?

Competency Matching – Conceptually, refers to the alignment between

individual's skills, knowledge and qualifications with their requirements of

specific job or roles. Operationally, can be assessed through how well these

accountancy graduates match the qualifications and skills needed in the job

roles they are in. It is the alignment of the competencies and expertise they

have with the job expectations.