Salary the main contributing factor for graduates when making career choices

News Article - 08 August 2011
Category: Business

Research from management consultancy Hay Group revealed that base pay is the main contributing factor for graduates when making highly important career choices.

The Group compared graduate level salaries from its remuneration database PayNet with 400 UK graduates' expectations for company roles in the following: IT, HR, finance, sales & marketing, engineering and legal.

Up to 93 per cent of graduates revealed that their base pay was the overriding factor in their career choice.

Meanwhile the top three criteria chosen after salary were all financially-related - benefits, future earnings outlook and bonus potential.

Perhaps surprisingly, the passion for the job was only an important factor for 16 per cent of new professionals surveyed.

Christopher Smith, reward information consultant at Hay Group, said: "The economic climate is clearly influencing graduates' career decisions.

"Acutely aware of the difficult labour market and rising living costs, they are looking for a career path that makes financial sense first and foremost. Idealistic factors barely come into consideration."

The research also found disparity between graduates' expected annual salary and their actual annual salary. In fact, graduates have underestimated the starting wage they can expect across the six main sectors by as much as £7,500 on average.

"Confidence in the market is understandably subdued amongst the Class of 2011," added Mr Smith.

"Confronted by an uncertain outlook, graduates have lowered their remuneration expectations well below what they can expect to earn in the main functions of the UK's largest graduate employers."

With a growing number of graduates applying for each available position, recruitment takes on an increasingly important position within small and medium-sized enterprises.

The onus will be on employers to compare and contrast applicants, fast-tracking those with a genuine flair and passion for the job ahead of applicants applying simply on an economic basis.

Integrated HR software maximises the technology available to SMEs ensuring the tools to accelerate and simplify an entire recruitment campaign are available.

Article keywords: recruitment, graduates, graduate recruitment, graduate employment

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