Despite still grappling with the lingering Covid-19 pandemic, businesses continue to experience labor shortages, which in turn is helping to drive up the salaries of even the newest entrants into the job market. Indeed, a report from the National Association of Colleges and Employers finds that the average starting pay for graduates of the Class of 2020 was $55,260, up 2.5 percent from the year prior and a whopping 8.5 percent more than the amount pocketed by the Class of 2018.
But before we dive in, let’s first discuss why hiring a brand-new grad can be a boon to your business. Topping the list for most business owners is the fact that college grads are eager to work! They are excited to enter the workforce, put what they’ve learned into practice, and (of course!) make some money after years of unpaid or underpaid internships. Another significant perk of hiring someone so fresh-faced is that you can mold them into exactly what you want, and try to steer them clear of some of the bad habits your more tenured staff may have picked up along the way. Business owners also stand to benefit from bringing on a new grad who is up to date with all the latest research and trends and can even position this new hire as the expert for your company or have them head up a program, all at what is typically a bargain-basement price.
Now, on that note, let’s talk finances! According to the report, having a college degree automatically increases your chances of earning more, with the average salary for someone with a four-year degree more than double that of someone who didn’t graduate from high school. The only exception to this rule is for graduates of trade schools, such as plumbers and electricians, who appear to earn generous hourly wages mere minutes after completing their apprenticeships!! By college major, tech programs continued to graduate top earners, with computer-related majors stealing four of the top 5 average starting salary spots. These jobs were bested only by petroleum engineering, which had the highest starting salary of $87,989. However, in a nod to the current times, the increased demand for nurses as front-line workers helped to push starting salaries up by 2 percent to $58,626 for Class of 2020 registered nurse graduates.
While salaries are important, it should be noted that these figures do not include bonuses, commissions, stock options, or the other perks that can make a job offer more appealing to a college graduate. Of note, a 2019 survey by College Pulse found that 56 percent of students valued a high-quality health plan as the top perk to offset a lower-than-expected salary offer, while a quarter indicated that additional paid time off would even out a lower salary. However, stock options — which are popular among the older set — were only a compelling counter to a smaller paycheck for 4 percent of students. As such, experts recommend that when pitching an offer to recent college graduates, you focus your offer on those perks that will help your new hire achieve a better work-life balance, such as the previously mentioned PTO, a comprehensive benefits program, access to an Employee Assistance Program (EAP), and even disability and life insurance. Other perks to play up during the interview process include opportunities for training and development, which can help the new grad envision a long and lengthy career at your company.
As for what you, as the employer, should be looking for when splashing out the big bucks for someone who is making their first foray into the professional world? Recruiting experts suggest that you should look for someone who has the experience, usually through paid or unpaid internships in the field in which you work (or a field or even a company that could bring something new to your table). Next up, you should scan their resumes for any skills or talents that may make up for their lack of experiences in corporate America, such as serving as a president of a club or organization (which can show you their ability to team lead and stay organized) or even any entrepreneurial activities that showcase their spark for taking risks and carrying a project to fruition.
Does your business tend to hire new grads? Do you find that you pay more for this young talent, or do you dish out more for more experienced workers?
