Understanding employability gaps in Gen Z: a multi-theoretic analysis using TOE, expectancy and self-determination frameworks

Purpose This study explores the systemic, behavioral and motivational barriers affecting Gen Z students’ placement preparedness in Indian higher education. It aims to offer a multi-theoretic and stakeholder-informed model for understanding and addressing employability challenges. Design/methodology/approach This study integrates the technology–organization–environment (TOE) framework, expectancy theory, and self-determination theory (SDT) to examine 14 placement preparedness barriers. Data were collected from 227 final-year students and 152 faculty and placement professionals from Tier 1 and Tier 2 institutions. The interpretive structural modeling (ISM) and MICMAC techniques were used to map interrelationships and identify high-leverage variables. Findings The analysis reveals that skill development gaps, digital overdependence and a lack of experiential learning are foundational barriers. These manifest as soft skill deficiencies, performance anxiety and expectation mismatches in the workplace. Faculty and placement professionals emphasized attention deficits, overconfidence in digital tools and lack of accountability. The ISM-MICMAC model highlights key driver variables, such as experiential learning and attention management, offering targeted intervention pathways. Research limitations/implications This study is contextually bound to Indian higher education and may not be generalizable globally. ISM–MICMAC’s reliance on expert judgment introduces subjectivity, whereas its cross-sectional design captures only a snapshot in time. Future research should incorporate longitudinal data, employer feedback and cross-cultural comparisons to strengthen predictive validity and extend the model's applicability beyond India. Practical implications Institutions must embed career readiness into curricula through internships, live projects and simulations. Behavioral enablers, such as accountability, resilience and digital discipline, should be cultivated through mentoring and reflective practices. Faculty development must expand instructors’ roles into career mentors, while policy should prioritize curriculum–industry alignment and equitable access to placement ecosystems, especially in Tier 2 and Tier 3 institutions. Social implications The findings reveal employability gaps as systemic, shaped by digital overdependence, unrealistic expectations and socio-economic inequities. Addressing these challenges requires coordinated societal efforts; families, educators and employers must reinforce interpersonal skills, resilience, and realistic career outlooks. Expanding equitable access to career resources and experiential opportunities is vital for underserved institutions to thrive. A whole-of-society response can prepare Gen Z to be work-ready, emotionally resilient and socially accountable. Originality/value This study contributes a novel systems-level, dual-perspective framework that integrates the psychological, institutional and technological dimensions of employability. It re-theorizes placement readiness as a co-produced, psychologically embedded process, offering actionable insights for educators, policymakers and placement programs aiming to future-proof the employability of Gen Z graduates.