What's a good starting salary UK?

Setting an appropriate graduate salary

Starting salaries for graduates have increased consistently over the past ten years, and there have been several reports that cover the salaries offered to new graduates by the most prestigious employers and the largest graduate programs. However, what does this mean for organizations that are not as large?

According to the research titled "The Graduate Market in 2019" published by High Fliers, the median starting wage for graduates in the United Kingdom in the year 2020 is anticipated to be £30,000 for the fifth year in a row. Given these statistics, it shouldn't come as a surprise that smaller firms are confused of how much they should pay a graduate or the compensation expectations that a new graduate may have. It is also feasible that smaller enterprises might get the impression that acquiring a graduate is out of their grasp when faced with a number of this kind.

On the other hand, the statistics for beginning salaries are often derived from a very limited number of significant graduate employers in high-paying sectors, who are engaged in a fierce competition for the "best graduates." However, in practice, the vast majority of graduates will start their careers at a start-up or a smaller firm, and their salaries will be lower.

If you broaden your search, you should be able to see that the typical beginning salary for graduates ranges between between £21,000 and £25,000. However, this varies depending on the industrial sector, work location, and graduate level, meaning that you should also anticipate paying a master's or doctoral student a higher salary.

What do graduates look forward to?

A skewed average wage might lead to graduates having incorrect expectations about their future income. Students may expect to graduate with large debt, however, due to the costs of tuition and living expenses. As a result, students are looking for jobs that provide not only a decent wage, but also a secure income and a permanent contract wherever it is available.

You should make sure that you are able to maintain the employee's wage, regardless of what it is, so that you do not run the danger of having to let them go without a job and leaving your organization with a skills shortage.

So, how much should you really be paying?

You should pay no less than the national minimum wage, but you should charge whatever you are able to afford. A fair beginning pay for graduates in the Yorkshire and Humber area would be around $22,000, using this range as a general estimate. If you need a degree in a skills shortage sector, such as computer science or engineering, giving a higher compensation can help you attract and keep a competent graduate. This is because offering a higher salary is one of the most effective ways to compete for talent. However, if you are unable to give a wage at this level, you need not be concerned. The other primary advantages of working for a smaller organization, such as responsibility, advancement opportunities, and flexibility, are attractive to a large number of recent graduates.


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