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Purpose

The purpose of this paper is to measure individual intellectual capital (IC) of academic staff as well as to test its impact on the employability readiness of future graduates and the reduction of the discrepancy between competencies developed and grades obtained with the help of two indicators, i.e. intellectual capital indicator (ICI) and employability readiness indicator (ERI). While ICI measures the level of a teacher’s competencies to be transmitted in the education process, ERI measures the level of a student’s competencies developed after completing relevant courses.

Design/methodology/approach

This is an empirical research carried out in the form of a case study. Regression model is applied to find the influence of ICI on ERI. The minimisation problem is set with relevant constraints to decrease the discrepancy between ERI and traditional grade point average (GPA).

Findings

The data were collected at one Kazakh university and from experts from academia and industry by means of documentary analysis, specialised tests and structured interviews. The direct impact of ICI on ERI is confirmed and the optimal level of ICI that permits an effective decrease in the discrepancy between ERI and GPA is identified.

Research limitations/implications

A longitudinal study covering more programmes is necessary to draw conclusions concerning causality. The application of ICI as a university’s management tool is shown.

Originality/value

The novelty of this study lies in providing a consistent and simple approach for calculating a teacher’s IC and its impact on a student’s employability readiness.

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