Employability has become one of the most important outcomes of higher education despite it being weakly conceptualised for the sector. The lack of an accepted conceptualisation to address students' and graduates' employability results in difficulties when comparing research findings and therefore in assessing quality in higher education provision. This paper addresses this gap in the conceptualisation of employability and adapts an established framework so that it aligns with the higher education sector. Employability is defined as 'the ability to find, keep and progress in graduate employment'. A holistic framework composed of four categories ('individual factors'; 'individual circumstances'; 'enabling support system'; 'labour market') is used to classify and measure employability. This allows for an understanding of how specific initiatives enhance the employability of students and graduates, and suggests ways to measure this impact. Also, the limitations of HEIs to impact students' employability are addressed using the framework. The examples of Germany and England show how differences in employability occur due to differences in the surrounding labour market. The paper concludes that in a complex and holistic discussion it is necessary to highlight the various indicators, including the labour market, which were used to report more nuanced aspects of employability.