Graduates' employability has emerged as a measure of institutions' success since recent higher education (HE) reforms and massification. A variety of strategies have been designed and implemented to ensure the smooth transition of graduates into the labour market. Our research compares the actions taken by two local higher education institutions (HEIs) to address the employability agenda in Portugal. The goal is to discuss whether these institutions have implemented a fully integrated employability strategy. Additionally, it explores the perceptions of local employers regarding the role of HEIs in mitigating their skill needs. The empirical analysis draws on qualitative data gathered through interviews with the academics responsible for employability actions and a sample of local employers in this specific regional setting. The findings suggest that HEIs have designed and implemented a varying set of employability actions and practices and are facing important challenges. The employers recognise HEIs' endeavours, but still refer to barriers for further collaboration. Academics face challenges to implement a mostly externally driven employability agenda, even in those that essentially cater to the local labour market.