If you are a recent or soon-to-be college graduate, you may have wondered about the value of your degree in terms of future income. Most college students prioritize salary and benefits while anticipating employment, and for good reason; over half of recent graduates face significant debt (along with interest) that they must repay.
What Salaries Can College Graduates Expect?
According to a recent survey by the real estate data company Clever, the average starting salary for college graduates in 2022 was estimated to be $55,260, the highest on record thus far. However, recent graduates overestimate their starting salaries by nearly double, as current college students expect to earn about $104,000 in their first job.
Students are not just hoping for high salaries; they also value:
- Flexibility
- Work-life balance
- Benefits
In another survey of college students, it was revealed that 9 out of 10 prefer a four-day workweek, favoring working four days a week for 9 hours a day instead of five days a week for 8 hours a day, allowing them to enjoy a three-day weekend. Two out of three respondents (66%) said it is unacceptable for employers to expect employees to work more than 40 hours a week.
Another survey of college students found that graduates have strong feelings about workplace culture. About 77% of students said they are less willing than previous generations to tolerate a toxic work environment for a salary.
Previous surveys conducted by Paul’s College also found that recent college graduates place a high value on benefits packages in addition to salary. A 2019 survey of 2,000 college students (graduating between 2019 and 2023) revealed that more than half of students (56%) said that high-quality healthcare plans were the best benefits a company could offer to compensate for a lower-than-expected salary. About a quarter of the students (24%) said that additional paid time off was a worthwhile trade-off for below-average salaries, and only 4% said they would take stock options instead of a higher salary.
The same survey also revealed that a majority of students who participated in the survey (58%) would choose an annual salary of $60,000 without stock options over an annual salary of $50,000 with stock options. Male students were evenly split, while 63% of female students said they would opt for the higher salary.
Note: Students who participated in the survey consider stock options a gamble compared to healthcare benefits, work-life balance, and fair salary.
Average Starting Salary After Graduation by Field
The National Association of Colleges and Employers (NACE) expects starting salaries to vary dramatically by major and field in 2022. Graduates with
Source: https://www.thebalancemoney.com/college-graduate-salaries-expectations-vs-reality-4142305
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