This research examines how higher education institutions can enhance the employability of business graduates by exploring the supply and demand for intercultural competencies, as perceived by both students and employers across Europe. It addresses two key research gaps: first, whether recent graduates in Europe meet employer expectations regarding intercultural competencies and second, how higher education institutions in Europe—particularly business schools—can improve graduates' employability by designing curricula that align with employer needs. Drawing on a cross-national study that includes 102 student and employer interviews conducted in the United Kingdom, Belgium, Sweden and Turkey, the research seeks to gain insights into the demand and supply of intercultural competencies from both employer and student perspectives. The study identifies seven key intercultural competencies: cultural empathy, cognitive flexibility, conscientiousness, social initiative, emotional stability, open-mindedness and willingness to tolerate ambiguity. It also proposes an eighth critical dimension—digital competencies for intercultural collaboration. These eight dimensions are conceptualised in an ‘Intercultural Competencies Framework’, which includes three categories of learning activities based on the findings. This framework can assist educators and employers in designing training programmes that enhance intercultural communication and collaboration skills.