College Graduates Are Overestimating Their Starting Salaries Significantly

As an EHS manager, it’s vital that you understand potential roadblocks in the future hiring process. The pandemic has greatly affected companies with the Great Resignation resulting in more than 40 million people leaving their jobs. As managers strive to combat the difficulties of targeting and recruiting new hires, an unexpected challenge arises — college graduates are significantly overestimating their starting salaries, creating a chasm between reality and expectation that is often difficult to overcome.

With hiring demand higher than ever, the projected starting salary for the class of 2022 is set to exceed $50,000. However, studies show that college students expect to earn double that — $103,880 for their first job.

There’s no doubt that new graduates are in for a surprise.

The potential disconnect comes from a workforce set to hire around 31% more new graduates than the previous year, with hires expecting larger salaries than companies are willing or able to pay. One study by the Real Estate Witch found that an astonishing 88% of undergraduate students overestimate their starting salaries.

Additionally, students over-project their salaries after 10 years, anticipating earnings of more than $200,000 when the average is $132,497. Certain majors, including those in the sciences and math, have starting salaries expected to rise as much as 5.4%, while others in areas like the humanities are expected to decline up to 14%.

Salary projections according to major for 2022 are as follows:

  • Math and Sciences: +5.4%
  • Agriculture and Natural Resources: +5.4%
  • Computer Sciences: +5.2%
  • Engineering: +4%
  • Social Sciences: +2.1%
  • Business: +3.1%
  • Communications: -4.7%
  • Humanities: -14.8%

With these numbers in mind, it’s essential that EHS managers prepare for the road ahead. For those in the sectors expecting salary decreases, you must explore strategies to continue attracting new hires. Even those in fields with rising salaries should prepare for an influx of unhappy and potentially unyielding incoming hires, with benefits beyond a paycheck that will draw them in.

By understanding the mindset of the newly graduated class of 2022, you can stay a step ahead, tackling hiring problems before they arise and ensuring your company’s prosperity.

Resources:

College Graduates Are Overestimating the Salaries They’ll Start Out At By $50,000, Report Finds, Jessica Dickler, CNBC.com.

EHS Professional Salary, ZipRecruiter.com.