Compensation plays a significant role in attracting and retaining top talent, and it is essential for early career talent teams and campus recruiting teams to have a clear understanding of what Gen Z candidates expect in terms of salary today. Neglecting to do so can lead to your organization missing out on top talent to your competitors, and can leave your team at risk for reneges. To help you better understand what entry-level job seekers are expecting in terms of compensation in 2023, we collected data from nearly 3,000 candidates about what they want to see in their future employers. Read on to learn why it's increasingly important to discuss salary with candidates today, what they expect in terms of their starting salaries, and whether employers today are meeting those expectations.
Why is it important to understand candidates' salary expectations?
One reason that it is increasingly important for campus recruiting teams to understand what entry-level candidates today expect when it comes to their compensation is that Gen Z will back out of their job offers if another opportunity arises with higher pay. In other words, compensation is the top reason for reneges today.
Specifically, the survey data that we collected from internship and entry-level job seekers in 2023 indicates that 64% of candidates would renege on their original offer for another role with a higher pay, (followed by nearly 60% of candidates said they would back out of an offer for another position that was a better career fit).
It's clear that compensation is directly related to reneges, but there are steps you can take to ensure candidates remain excited about your opportunities, even though other roles with higher paychecks may still come their way . For example, it is crucial that you make sure candidates understand the full scope and value of your compensation package, and are not solely focused on their base salary.
What starting salaries is Gen Z looking for?
To get a better understanding of what today’s candidates are looking for when it comes to compensation, we took a look at the minimum salary expectations that candidates on our platform input when creating their profiles. We found that the median minimum salary for candidates looking for STEM opportunities is $70,000. For non-STEM candidates, the median minimum salary is $60,000.
Looking at the National Association of Colleges and Employers’ (NACE) 2023 salary survey, we found that these figures do align with the industry average for STEM salaries for new grads. Specifically, from their survey NACE projected that the average salary for engineers in 2023 would be $74,405, and computer science majors would take home $72,843.
Turning to non-STEM salaries, while some areas of study exceed the $60,000 mark, other fields fall short. For example, NACE projected that business majors will make an average of $62,069 and that social science majors will take home $60,107 in 2023. For communications majors, however, NACE projected a salary of $58,097, and $52,938 for humanities majors.
It’s important to note, however, that grads do not necessarily choose to work in the area they studied in college. At the same time, these salary projections and our platform data are good indicators of what Gen Z expects from a future employer. This information should help you identify whether there are large discrepancies between our data and your budget for early career candidates.
Is Gen Z satisfied with their salary offers today?
Now that you understand what Gen Z expects to make in entry-level roles today, you may be wondering if they are being offered salaries they are satisfied with. When we surveyed candidates in spring 2023, we found that nearly three quarters of internship and full-time job seekers were satisfied with the compensation they were offered, while 22% accepted an offer that did not meet their salary expectations.
When digging into the reasons as to why they would accept an offer they were not satisfied with, we learned that nearly 50% felt that it was better to accept the position rather than not have an internship or job at all. Having discovered in a previous data set that the top reason candidates rescind offers today is due to higher compensation from a competing offer, it’s important to note that this share of candidates may be highly susceptible to reneges. That being said, it’s important to discuss opportunities with candidates to increase their salary as they advance within your company if you can’t offer them a salary they desire right away.
Gen Zers want to feel valued by companies today, and it's important to them that their future employers reflects that in their compensation packages. This data should serve as a benchmarking tool for your team as you determine the entry-level salaries that will set you up to compete for top talent, show candidates they are valued at your organization, and help you to avoid reneges. Looking for more analysis of Gen Zers entering the workforce? Download our full report to early career recruiting and hiring in 2023, and discover insights on Gen Z candidates here.
