It can be tough for a small business to know how much they should pay a graduate. Large companies have access to countless years of data, which employees accepted what pay offer, what the pay rises were, et cetera – for a SME or startup, that information simply doesn’t exist.
Yet while there might be a lack of self-generated data, thankfully, there’s still a lot that’s collected and shared by other parties around the country. Here are some of the most helpful resources for determining what you should pay your graduates.
Graduate Outcomes Survey
Each year, the Graduate Outcomes Survey gathers data from recent graduates on a number of different topics. With the most recent survey working off over 100,000 responses, it’s a resource you can trust.
Among the questions graduates answer are those about salary. As such, the published report features median salary tables, broken down by gender and study area. While this data doesn’t tell you what you might expect to pay a graduate for a specific role, it can tell you something about their salary expectations, given the field they studied.
Hays Salary Guide
Hays is an international recruiting company, one of the largest players in the industry. Each year they survey businesses they work with and create a salary guide for a large range of positions. It features data on the highest, lowest and average salaries, along with other typical benefits for a given position. You can download the full report or, more simply, use their online Salary check tool. For example, the tool says that a Marketing Assistant in Victoria earns A$55,000 on average, with the highest earning A$65,000 and the lowest $45,000.
Research has found the major determinant of starting salaries for graduates is the weighted average of their grades.
Fair Work Ombudsman
While what you choose to pay is up to you, there are still laws and regulations about minimum rates you have to abide by. Aside from the general minimum wage, there are also country-wide awards – minimum terms, pay rates and conditions for employment above the National Employment Standards. There are awards for almost every industry, so check to see if the role you’re recruiting for is covered by one.
Higher grades = higher salaries
It’s important to keep in mind that some of the data you’ll find is talking about averages. Yet a forward-looking small business or start-up doesn’t want an average candidate; they want the best. This – as might be expected – comes at a price.
Research by Grace Chia and Paul Miller* from the University of Western Australia suggests that, in this country at least, the major determinant of starting salaries for graduates is the weighted average of their grades during their university careers. To get the best and the brightest, you are going to have to pay a little more.
Monash Talent is a recruitment agency in Melbourne. With the exceptional talent pool of Monash University behind us, we are able to find the perfect graduate for you business. To learn more, get in touch today.
* Chia, G., & Miller, P. W. (2008). Tertiary Performance, Field of Study and Graduate Starting Salaries. The Australian Economic Review, 41(1), 15-31.