Salary FAQs
Whether you want to know what the average graduate starting salary is, or find out which areas of work pay the most, read on to find out more. Being informed can help you when it comes to choosing a job or negotiating your salary.
What’s a typical graduate starting salary?
According to the latest statistics released by the Higher Education Statistics Agency (HESA), the median graduate starting salary (to the nearest thousand) was £19,000. This figure was for first degree graduates from 2007 who were in full-time employment in the UK six months after graduating.
On the other hand, according to the latest figures from the Association of Graduate Recruiters (AGR), the median starting salary for 2007 graduate hires was £24,500.
So, why the difference?
The AGR study, published in July 2008, was a survey of 242 graduate employers who are members of the Association of Graduate Recruiters. It’s important to note that these are mostly large, blue-chip companies with vacancies aimed specifically at graduates. Also, many ‘graduate’ vacancies are based in London, where salaries offered tend to be higher than in other parts of the UK. The AGR survey respondents between them employed a total of 23,727 graduate recruits in 2007. So if you want an average salary figure for a typical graduate-scheme job, the AGR figure (£24,500) is what you’re looking for.
However, a substantial number of graduates are employed by organisations that aren’t members of the AGR and many also go into jobs that aren’t specifically targeted at degree holders. The salary figure from HESA takes this into account, as it takes into account the salaries of 97,096 first-degree graduates who went into all types of jobs, not just those aimed specifically at graduates. If you want an idea of what you might realistically expect to earn as a starting salary, whether or not you get a typical graduate job, then the HESA figure (£19,000) is a more realistic figure.
Which areas of work are the best paid?
The best paid areas include law, banking and finance, but it is hard to generalise as there are many jobs in every sector and some pay more than others. Starting salaries also vary by location – frequently organisations who employ graduates in several locations across the UK will offer higher salaries to employees starting work in London to offset the higher cost of living. According to the latest statistics from the AGR, the six sectors with the highest median starting salaries for graduates in 2008 were:
What questions can I ask at interview?
Most employers will state the salary and benefits during the interview, but if you get to the end and they still haven't mentioned it, it's perfectly acceptable to find out what you're entitled to. Just make sure that it's not the first question you ask! You may want to ask about any of the following: pension scheme, share options, holiday allowance, sick leave, and any other benefits they offer, which could range from healthcare contributions to discounted gym membership.
Should I negotiate?
Make sure that you know the market value of the job before the interview, but leave any negotiations until you have a firm job offer from the company. Look at salaries for similar jobs in the same industry and geographical location. While it's not a good idea to be unrealistic, some companies can be persuaded to increase an offer. However, most big companies that recruit hundreds of graduates will be less flexible because of the numbers recruited and the fact that entry into graduate trainee schemes is so competitive.
How can I predict my salary development?
Make sure you find out how the company assesses salary progression, and how often pay is reviewed. Your salary development will ultimately depend on how much value you can bring to the company. If you are in a company that gives you opportunities to keep learning and taking on more responsibility, your salary should in turn increase.
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