Further university study beyond completion of a basic degree can pay off in the salary stakes, according to the findings of a graduate salary survey carried out by management consultants, PA Consulting Group.
The company’s team leader - human resources, Kevin McBride, said he believed the survey of 492 graduates from 39 private and public sector organisations was the only one of its kind available in the country.
Now in its fifth year, Mr McBride said this year’s survey results show that although remuneration for Bachelor and Honours graduates in the first year of employment is almost identical, after the second year the rate of progression for Honours graduates is higher.
"At year one, the median base salary for graduates with Bachelor degrees is $30,500, while the figure for those people with Honours degrees is almost the same at $30,713," he said.
"However, things change considerably in the third year of employment, with Bachelor graduates receiving $35,000 compared to $44,500 for Honours graduates. When it comes to graduates obtaining higher salaries, the survey findings lend considerable weight to the merit and value of further study."
Mr McBride said, overall, the survey shows that remuneration for first year graduates has increased over the past five years with the median figure for 1997 being $31,650 compared to $28,500 in 1993.
Those people majoring in Social Sciences fared best in this year’s survey, receiving the highest starting base salaries and total remuneration, while law graduates received the lowest.
Mr McBride said the majority of organisations surveyed currently review graduates’ salaries after their first 6 months of employment, with the first increase in base salary averaging 9.9 per cent.
"Analysis of first base salary increase percentages over the past five years shows that since 1994, increases in this area have ranged between 8.5 and 9.9 per cent."
He said a limited number of graduates were also receiving fringe benefits, with the most popular being superannuation, bonuses, telephone rental, medical benefits and payment of professional fees.
"Over the years, there has been a gradual decline in the range of benefits made available to graduate employees, due to a move by employers to simplify salary administration."
In the area of recruitment of graduates, the most popular methods are advertising and university/polytechnic career programmes. And of the employers surveyed, 54.1 per cent offer some form of sponsorship, the most common being the provision of vacation work for graduates.
On the issue of study leave, Mr McBride said organisations are now more willing to offer time away from the office, compared to previous years.
"In 1997, 91.9 per cent of organisations surveyed said they offered some form of study leave to employees - a significant increase on 1996 figures when only 66.6 per cent of organisations offered leave."
He said the most common provisions in this area include reimbursement of costs incurred by further study (contingent upon successful completion of the study programme) and study leave.
