Why Are Wages for Young College Grads So Terrible?
Forget about the mythical throngs of Ivy-educated baristas. Companies have essentially frozen entry-level salaries for even the smartest graduates.
When young people do things that confound the rest of the country—like take forever to find their own place, delay marriage, stop having kids, stuff like that—some analysts turn to young-adult psychology or brain-destroying technology for an explanation.
There’s a better (albeit less sexy) story. More young people are grabbing debt to go to college, but they can’t punch the ticket to full-fledged adulthood, because college-grad wages are growing at historically pitiful levels. In fact, the incomes of recent college grads are growing so glacially that they make the rest of the country look like we’re discovering $100 bills in our coat jackets every morning.
Income Growth for College Grads:
College-grad wages hit a wall. Why?
Perhaps the most obvious—and most commonly offered—explanation is that the recession has forced the entire youth generation to become a collective of baristas, fast-food workers, part-time artists, and otherwise “under-employed” people. (Under-employed typically means working at a job that requires less than your education.)
Counter Job Offer
Counter offers are part of the package of recruitment.
However, how can you counter the counter offer?
Here are my 5 steps to doing that:
1) Uncover your candidate’s motivators:
Every candidate will have their own specific reasons for looking to change jobs (lack of career progression/ challenge/ support from management/ compensation etc) and your first priority should be to discover AND qualify exactly why they are looking to leave their current employer.
Remember, don’t take their reasons for face value! Qualify their reasons by discussing them in more detail and asking probing questions to dig deeper into why they really feel that way. Keep notes and document this important information as you can use it in the future to remind the candidate of their original motivations.
This is an important step as not only does it give you more control in a counter offer situation, it also gives your more insight into the candidate and what really makes them tick.
What if the candidate is primarily motivated by money?
That’s ok! At least you now know so you’ll be extra alert to the heightened risk of a counter offer situation.
I’ve successfully placed dozens candidates whose main motivator is money – sometimes it can make it make the candidate easier to close as the motivation is black and white. Again, dig deeper and find out the specifics about their compensation requirements and the shortfall at their current employer. This information can be used to your advantage during the offer process.
Wage growth is accelerating in several key industries, foreshadowing stronger gains across the economy, experts say.
Pay hikes have picked up in sectors such as leisure and hospitality, business services, construction and retail, Labor Department figures show.
“There is evidence that a cyclical upturn in wage growth is underway,” says economist Paul Dales of Capital Economics.
Despite monthly job growth that has surged well over 200,000 this year, average annual wage gains remain stuck at 2% — barely enough to keep pace with inflation.
Employers’ failure to provide bigger raises has crimped consumer spending, which makes up 70% of the economy.
But there are mounting signs that pay hikes are poised to gain momentum in the second half of the year, Dales and other economists say. Wages in leisure and hospitality were up 2.7% in June from a year ago, vs. a 0.6% annual increase in June 2013.
Everyone knows that it’s an extremely bad idea to lie during the job search procedure – on your CV/resume and especially in an interview.
However, interviewers aren’t put in the position of having to tell the truth all the time.
What are the biggest lies that interviews tell candidates? Find out below (courtesy of JobCluster)!
- “We’ll call you and get back to you in some time”
- “We will give you a salary considering your work experience”
- “We are impressed but we still need to interview more people”