The next step after graduation is to find a suitable job as per your needs. And the biggest concern for most of the students is the starting salary of their job. For this purpose, understanding the average starting salary out of college is important for financial and career planning. Here are some of the important and necessary points a student must look into for understanding the average starting salary out of college.
Overall Average
According to various surveys and reports, the average starting salary offered to recent college graduates varies between $50,000 to $80,000. The report also mentioned that an increase and decrease is also seen in these figures that depends on a country’s economic growth.
Fields of Study/ Variations in Major
One of the most important factor that influences the average starting salary out of college is the field of study. Different fields of study or majors provide different earning potential. The fields including Science and Technology have high starting salaries compared to other sciences. Some of these majors and their importance is listed below;
- Engineering Majors: Graduates having an engineering degree tend to have the highest starting salaries, starting from $70,000. In this field, Chemical engineering, Nuclear engineering, Civil engineering etc. are considered to be the highest paying jobs.
- Health Professions: Graduates having health related degrees, such as nursing get high starting salaries too ranging from $60,000 to $70,000.
- Business and Finance: Business administration and finance graduates often start with salaries ranging from $50,000 to $65,000 depending on the location and industry.
- Humanities and Social Sciences: This field of study is considered on the lower end, and the graduates from these fields may experience lower starting salaries ranging from $45,000 to $50,000.
Geographic Variation
This is a factor that influences the average starting salary out of college. Different regions in the world have different standard of living depending on the economy of that region. For this, urban regions offer high starting salaries as compared to rural regions. For example:
- California and New York: These countries are included in the urban region where the cost of living are generally high. Therefore, the starting salaries for finance and tech graduates is $70,000.
- Midwestern Region: These regions have a normal standard of living so they offer normal starting salaries to the graduates such as $50,000.
- Rural Areas: These regions have low economy, therefore they offer a low starting salary to their graduates, and they may also suffer due to less availability of jobs.
Internship and Experience
The average starting salary out of college is also effected by another factor that includes experience.
Experienced graduates are more in demand than the ones without an experience. For this reason the starting salaries of experienced graduates are relatively in high range like $70,000. Therefore for a high starting salary, graduates must opt for experience and internship first.
Degree Level
The level of degree also a plays a vital role in the average starting salaries out of college. A high degree such as MA, MS, MPA, MPH, MBA, and M. Phil often demands a high starting salary as compared to the BS degrees. Therefore, average starting salaries of master degree holder are in demand and offered high starting salary such as $70,000.
Economic Factor
The overall economy of a country is one of the most important factor of the average starting salaries. By looking on the overall economy of a country a person could tell the amount of interest one would have in pursuing a salary. Stable and strong economic growth leads to high starting salaries for the graduates. Therefore, an economically developed country is preferred for a high starting salary.
Industry Demands
The demand for certain professions also effects the starting salaries. Technology and Healthcare are high demand fields, for which they offer high starting salaries. These fields are also very competitive due to the high salary offers.
Negotiating Skills
Negotiating a starting salary is an important skill, but it is discouraging for most graduates. A student must know the listed negotiating skills for a better startup:
- Do Research: Research is an essential key. Before negotiating a graduate should research about their specific role and location. Websites like Payscale can provide valuable awareness in this regard.
- Know Your Value: Graduates should evaluate their skills, academic achievements and experience that could add value to their future employers. This strategy could lead you to a better offer.
- Be Flexible: Graduates are often aiming on high salaries, negotiating the other effects of the job such as remote work options and high vacation days can also lead to satisfactory outcome.
- Practice: As practice makes a man perfect. Practicing your negotiating skills with your parents and friends can help build your confidence. This will prepare you for real-world discussions
Benefits beyond Salary
A graduate should look after the benefits beyond the starting salary. As these benefits will help you in various aspects. Professional as well as healthcare problems, vocational and vocational days must be covered apart from your salary. So, a graduate should pay attention to this topic also apart from the goal of high starting salary.
Conclusion
The average starting salary out of college depends on a number of various factors. A list of which is mentioned above. Understanding these factors can help the graduates set realistic expectations and can help the graduates to make informed decisions about their career path. These factors will also help the graduates who are navigating their early professional journeys.
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