But given the growth in median incomes, and the fact that it is still a jobseeker’s market in hot sectors, should fresh graduates attempt negotiating a higher starting salary?
Of course, everyone wants a job that pays well. But there is a fine line that differentiates what is reasonable and what isn’t. To understand the formula behind your salary structure, you must first understand the factors that influence it.
THE GREAT SALARY ADJUSTMENT
Some sceptics might say that we’re overpaying fresh graduates, and they’re not entirely wrong. From 2020 to the first quarter of 2022, we saw many employers enter price wars to secure talent as they grew their workforce.
For instance, some technology firms almost doubled their workforce size during COVID-19 because they needed more hands on deck to meet the needs of a growing pool of digital users. Expansion was also much easier then because companies didn’t have to worry about having enough office space to accommodate everyone.
Unfortunately, as global markets suffered under inflationary pressures, retrenchment waves became rife as companies struggled to save costs. Attracting talent using enormous salaries proved to be a deeply unsustainable practice.
Many organisations are starting to adjust their salary and workforce structures to reflect the current supply and demand in the job market. We are also seeing the market average for some jobs being adjusted based on the existing talent supply and the complexity of these jobs.
WHY THE PRESSURE TO SECURE A HIGH STARTING SALARY?
Today’s graduates come equipped with a fresh set of technical and digital skills and are able to find work in up-and-coming fields. Not only do they have strong theoretical knowledge, many fresh graduates also have multiple internship experiences under their belts.