[00:00:06] Welcome to From Dorms to Desks, job hunting tips for those early in their careers. A podcast brought to you by College Recruiter Job Search Site, which believes that every student and recent grad deserves a great career and hosted by Work Defined. Join our AI co-hosts as they dive into tips, tricks, and insights that will help you land your next part-time, seasonal, internship, or entry-level job. Let's get your career started.
[00:00:33] Okay, so let's jump right in and, you know, we're all thinking about different career paths, right? Maybe even specific jobs within those paths. But of course, salary always comes up.
[00:00:45] Always.
[00:00:46] Yeah, it's a big piece of the puzzle.
[00:00:47] Big time.
[00:00:48] Especially when you're just starting out.
[00:00:49] Yeah, for sure.
[00:00:50] We've been looking at some recent articles about what new grads are facing when it comes to money matters. And here's some pretty eye-opening stuff.
[00:00:59] Oh, yeah.
[00:00:59] Yeah.
[00:01:00] We're going to unpack how those starting salaries can really impact your long-term earning potential.
[00:01:07] Why Gen Z seems to be feeling the pressure maybe more than ever.
[00:01:10] Right.
[00:01:10] And what companies are trying to do to attract people beyond just flashing those big salaries.
[00:01:15] Yeah. You know what I find interesting is how money seems to be front and center for Gen Z when they're thinking about career choices.
[00:01:23] You know, it's not just finding a job you love.
[00:01:25] Right.
[00:01:25] It's about finding a job that pays well.
[00:01:27] Yeah. It's like passion versus paycheck.
[00:01:29] Uh-huh.
[00:01:29] Wallet Hub did this survey.
[00:01:31] Uh-huh.
[00:01:31] And 46% of students said that their main goal is earning potential, even over like their passions.
[00:01:38] Wow.
[00:01:39] Is that just them being practical or is there something bigger going on?
[00:01:42] I think you have to look at the economic realities they're facing.
[00:01:46] Right.
[00:01:46] You know, Handshake, which is a job platform for college students, found that 69% of grads with student loan debt say it will heavily influence their job choices.
[00:01:55] Oh, wow.
[00:01:56] That's huge.
[00:01:57] Yeah. That's a lot of people.
[00:01:58] It really is.
[00:01:59] And it's not just a little debt either.
[00:02:01] No.
[00:02:01] The average student loan debt is $38,000.
[00:02:04] It's a lot.
[00:02:05] According to all these articles we've been reading.
[00:02:07] Yeah.
[00:02:08] Pair that with rising cost of living everywhere.
[00:02:10] Uh-huh.
[00:02:10] No wonder money's top of mind for new grads.
[00:02:13] Absolutely.
[00:02:14] You know, they're feeling the pressure to be financially independent.
[00:02:17] Yeah.
[00:02:17] And that often means prioritizing jobs that offer higher starting salaries, even if it means maybe compromising on their dream career path.
[00:02:24] So is that intense focus on starting salary setting them up for a rude awakening when they hit the job market?
[00:02:31] I mean, is there a disconnect between what new grads expect to make and what employers are actually offering?
[00:02:36] Yeah.
[00:02:37] There definitely seems to be a gap.
[00:02:39] Bankrate looked at data from any.
[00:02:42] Okay.
[00:02:42] Yeah.
[00:02:43] And found that the average starting salary for new grads is about $68,516.
[00:02:49] Okay.
[00:02:49] But then you look at the survey by Real Estate Witch, and they found that grads are expecting to make closer to $85,000 in their first job.
[00:02:57] Wow.
[00:02:58] Yeah.
[00:02:58] So the pretty big difference.
[00:03:00] Yeah.
[00:03:00] Over $16,000.
[00:03:01] That's a big gap.
[00:03:03] Where's this disconnect coming from?
[00:03:05] I mean, are colleges overselling the earning potential of certain degrees?
[00:03:10] Maybe.
[00:03:10] Is it the influence of social media where everybody seems to be living this lavish lifestyle?
[00:03:15] Could be.
[00:03:15] Or are young people just misinformed about what the job market really looks like?
[00:03:18] I mean, it's probably a combination of factors.
[00:03:21] Right.
[00:03:21] But this gap between expectation and reality can lead to a lot of frustration.
[00:03:26] Yeah.
[00:03:26] For new grads, imagine you get the degree, you're feeling excited about your career prospects, and then you get hit with this salary offer.
[00:03:35] That's significantly lower than what you had in mind.
[00:03:38] It can be demoralizing.
[00:03:39] Yeah.
[00:03:40] It's like having the rug pulled out from under you.
[00:03:41] Yeah.
[00:03:42] Yeah.
[00:03:42] And to add insult to injury, only 24% of grads plan to negotiate their salary according to data from Monster.
[00:03:50] I know.
[00:03:50] Fear is powerful.
[00:03:52] It is.
[00:03:52] They're afraid of losing the offer.
[00:03:54] They don't want to appear difficult, or they just don't know how to negotiate.
[00:03:57] Yeah.
[00:03:58] It's a skill that's not always taught, but it's so important.
[00:04:01] It is.
[00:04:01] Especially when you're starting out.
[00:04:03] And that's where that snowball effect comes in, right?
[00:04:05] Yeah.
[00:04:06] Starting with a lower salary and then struggling to catch up even though you gain experience and you get better.
[00:04:10] Exactly.
[00:04:11] Employers tend to base future raises on your current salary.
[00:04:15] Oh, wow.
[00:04:16] So if you start low, it can be incredibly difficult to make significant jumps later on, even if you're a top performer.
[00:04:23] So you could be stuck on that lower salary trajectory for years.
[00:04:28] Yeah.
[00:04:28] Unfortunately, that's a real possibility, especially if you stay with the same employer.
[00:04:32] Right.
[00:04:32] And that's why negotiating a fair starting salary is so important.
[00:04:36] It really sets the foundation for your future earning potential.
[00:04:41] It's like you're choosing a path at a fork in the road.
[00:04:43] And one path leads to this slow and steady incline.
[00:04:47] Right.
[00:04:48] While the other one has a much steeper climb.
[00:04:50] It does.
[00:04:51] And once you've chosen that path, it's kind of hard to switch to the other one.
[00:04:55] Very difficult.
[00:04:56] You might even feel trapped.
[00:04:57] Yeah.
[00:04:57] But what about if you switch employers early in your career?
[00:05:00] Yeah.
[00:05:01] The new employer might be willing to pay you based on your skills and experience rather than what you're making before.
[00:05:07] Exactly.
[00:05:07] They don't have that previous salary data to anchor their offer.
[00:05:11] Right.
[00:05:12] So they're more likely to assess your value based on the current market rate for your skills and your experience.
[00:05:18] It's almost like hitting the reset button.
[00:05:20] Yeah.
[00:05:20] On your earning potential.
[00:05:21] Yeah.
[00:05:22] But nobody wants to plan on jumping from job to job just to get a decent salary.
[00:05:26] Right.
[00:05:27] I mean.
[00:05:27] And it shouldn't have to be that way.
[00:05:29] It shouldn't.
[00:05:29] But the reality is your starting salary can have long-term consequences, especially if you stay with the same employer for a long period of time.
[00:05:37] So what can new grads do to avoid getting stuck in this low salary cycle?
[00:05:43] Well, some are pushing for more transparency up front.
[00:05:47] Okay.
[00:05:47] You know, they want to see salary ranges right in the job description.
[00:05:50] Right.
[00:05:50] Or discuss it early in the interview process.
[00:05:53] Yeah.
[00:05:53] And that takes some of the pressure off them to have that potentially awkward negotiation later.
[00:05:58] Right.
[00:05:58] It levels the playing field.
[00:05:59] It does.
[00:06:00] Because if you know the salary range up front, you can decide if it aligns with your expectations before you even get to the offer stage.
[00:06:07] That's right.
[00:06:08] And it also shows that the company is willing to be open about compensation, which is a positive sign about their overall culture.
[00:06:15] Totally.
[00:06:17] But let's be real.
[00:06:18] Money isn't the only factor in choosing a job.
[00:06:21] It's not.
[00:06:21] Gen Z is also talking a lot about work-life balance.
[00:06:25] Right.
[00:06:26] Mental health.
[00:06:26] Uh-huh.
[00:06:27] Diversity and inclusion initiatives.
[00:06:29] Absolutely.
[00:06:29] They're looking at the whole package.
[00:06:31] Right.
[00:06:31] So maybe companies need to get more creative with their benefits packages.
[00:06:35] I think so.
[00:06:36] To attract and retain top talent.
[00:06:38] Yeah.
[00:06:38] We're already seeing things like student loan repayment programs, housing subsidies, generous parental leave.
[00:06:45] Wow.
[00:06:46] Flexible work arrangements.
[00:06:47] It's becoming a more holistic approach.
[00:06:49] It is.
[00:06:50] So it's not just about the number on the paycheck anymore.
[00:06:53] It's the overall value proposition the company is offering.
[00:06:57] Yeah.
[00:06:57] But even with these perks and benefits, you can't ignore the long-term financial implications.
[00:07:03] Right.
[00:07:03] Of those early career choices.
[00:07:05] You know, starting low can still have a ripple effect for years to come, even if a company has amazing benefits.
[00:07:11] It's about finding that balance, isn't it?
[00:07:13] It is.
[00:07:14] Weighing your passions against the practicalities of earning a living.
[00:07:18] Finding a company culture that aligns with your values and making sure you're setting yourself up for long-term financial stability.
[00:07:25] Exactly.
[00:07:26] And that's a tough challenge for anyone.
[00:07:28] Oh, yeah.
[00:07:28] Especially those just starting their careers.
[00:07:30] For sure.
[00:07:30] I mean, it's a lot to consider.
[00:07:32] It is.
[00:07:32] Yeah.
[00:07:32] It really is a balancing act.
[00:07:34] And it's easy to get caught up in the excitement of landing that first job.
[00:07:37] Oh.
[00:07:38] And not really grasp the long-term implications.
[00:07:41] Right.
[00:07:42] Of the salary.
[00:07:43] You're so excited you got the job.
[00:07:44] Exactly.
[00:07:45] Not really thinking about what it means 10 years down the road.
[00:07:48] Totally.
[00:07:48] It's almost like you need a financial roadmap for your career.
[00:07:52] Yeah.
[00:07:53] You know, something that helps you see those long-term implications more clearly.
[00:07:57] I like that analogy.
[00:07:58] Yeah.
[00:07:59] So it's not just about surviving your first year out of college.
[00:08:02] Right.
[00:08:02] But thinking about how this first job fits into your bigger career aspirations.
[00:08:07] Exactly.
[00:08:08] And maybe that means taking a slightly lower paying job.
[00:08:12] Okay.
[00:08:12] At a company that's known for investing in its employees.
[00:08:15] Right.
[00:08:16] And offers clear career progression paths.
[00:08:19] So you can move up.
[00:08:20] Exactly.
[00:08:21] Or maybe it means prioritizing opportunities for mentorship and skill building.
[00:08:25] Yes.
[00:08:26] Over chasing the highest starting salary right out of the gate.
[00:08:29] Those are smart moves.
[00:08:30] Yeah.
[00:08:31] You're essentially investing in your future earning potential.
[00:08:34] I see.
[00:08:34] Because let's face it, you're probably not going to stay in that first job forever.
[00:08:38] And when you do start looking for that next opportunity, those experiences and skills are going to be what set you apart.
[00:08:44] And potentially justify a higher salary.
[00:08:47] Exactly.
[00:08:48] It's like building a strong foundation.
[00:08:49] Yes.
[00:08:50] For your career.
[00:08:51] Yeah.
[00:08:51] One that can support those future salary jumps.
[00:08:54] That's a great way to put it.
[00:08:55] It's about thinking strategically about your career trajectory.
[00:08:59] Yeah.
[00:08:59] Not just focusing on that immediate paycheck.
[00:09:01] But that can be hard.
[00:09:03] It is.
[00:09:04] For new grads who are already feeling the pressure.
[00:09:07] Yeah.
[00:09:07] Of student loan debt and wanting to be financially independent.
[00:09:10] Absolutely.
[00:09:11] It's a lot to juggle.
[00:09:13] Yeah.
[00:09:13] And that's why I think having these open and honest conversations about money is so important.
[00:09:18] For sure.
[00:09:18] It's not about being greedy.
[00:09:20] Right.
[00:09:20] It's about understanding your worth and advocating for yourself.
[00:09:24] It's about recognizing that your salary is a reflection of the value you bring.
[00:09:29] Exactly.
[00:09:29] To the company.
[00:09:30] Yes.
[00:09:31] And sometimes that means having the courage to walk away.
[00:09:35] You do.
[00:09:35] From a low ball offer.
[00:09:37] Absolutely.
[00:09:37] You have to know your worth.
[00:09:39] Yeah.
[00:09:39] And be willing to stand up for it.
[00:09:41] Sometimes that means having tough conversations and sometimes it means exploring other opportunities.
[00:09:46] Because sometimes the only way to break free from that low salary cycle.
[00:09:51] Yeah.
[00:09:51] Is to find a new employer who's willing to pay you what you're worth.
[00:09:55] Right.
[00:09:55] It's not ideal.
[00:09:57] Right.
[00:09:57] And it definitely shouldn't be the default solution.
[00:10:00] Right.
[00:10:00] But it can be a way to reset your earning potential and get back on track.
[00:10:04] But it raises a bigger question.
[00:10:06] Why are we so afraid to talk about money?
[00:10:09] You know, it's funny.
[00:10:10] It's this cultural taboo.
[00:10:12] It is.
[00:10:13] We're taught it's rude to discuss salary.
[00:10:16] Right.
[00:10:16] That it's bragging or impolite.
[00:10:18] Yeah.
[00:10:19] But that silence only benefits the people in power.
[00:10:22] Right.
[00:10:23] The ones who are already making the big bucks.
[00:10:25] It perpetuates pay inequities.
[00:10:26] It does.
[00:10:27] And keeps salaries suppressed.
[00:10:29] Exactly.
[00:10:29] Which is why it's so important for Gen Z to challenge that norm.
[00:10:33] Yeah.
[00:10:33] To be open about their salary expectations and to negotiate their worth.
[00:10:37] They're not just fighting for themselves.
[00:10:39] They're fighting for a more equitable and transparent workplace.
[00:10:43] They are.
[00:10:44] For everybody.
[00:10:44] And they're showing future generations that it's okay to talk about money.
[00:10:48] Yeah.
[00:10:48] That it's actually essential to achieving financial security and career success.
[00:10:53] It's about flipping the script.
[00:10:54] Uh-huh.
[00:10:55] And taking control of your financial future.
[00:10:57] That's a great way to put it.
[00:10:58] Okay.
[00:10:59] So you've tried negotiating a raise.
[00:11:01] Mm-hmm.
[00:11:01] You've considered switching companies.
[00:11:03] Yeah.
[00:11:03] But you're still feeling stuck in that low salary cycle.
[00:11:07] Right.
[00:11:07] What else can you do?
[00:11:09] Well, sometimes the best thing you can do is shift your focus from job hopping to skill
[00:11:14] building.
[00:11:14] Okay.
[00:11:15] Instead of constantly looking for a new job with a higher salary.
[00:11:19] Right.
[00:11:19] Focus on becoming so good at what you do that you become indispensable.
[00:11:23] That's a good strategy.
[00:11:24] Yeah.
[00:11:24] Think about it this way.
[00:11:26] Every job, even a low-paying one, is an opportunity to learn and grow.
[00:11:31] Yeah.
[00:11:31] So instead of focusing on the number on your paycheck.
[00:11:34] Okay.
[00:11:34] Focus on the skills you're developing, the connections you're making, the experiences
[00:11:40] you're gaining.
[00:11:41] Those are all important.
[00:11:42] They are because those are the things that will ultimately increase your market value and
[00:11:46] make you more attractive to potential employers.
[00:11:48] Okay.
[00:11:49] So take some time to think about what skills are in high demand in your industry.
[00:11:54] Yes.
[00:11:55] Are there any certifications or training programs you could pursue?
[00:11:58] Could you volunteer for a project that lets you learn new software or develop a new
[00:12:03] skill set?
[00:12:03] That's a great idea.
[00:12:05] These are investments in your future earning potential.
[00:12:08] And the best part is you can often do them while you're still working your current job.
[00:12:12] That's right.
[00:12:13] It's about playing the long game.
[00:12:14] Yeah.
[00:12:15] Instead of chasing those quick fixes and short-term gains, you're building a foundation
[00:12:19] for a sustainable and fulfilling career.
[00:12:22] And you're showing potential employers that you're not just looking for a paycheck.
[00:12:25] Right.
[00:12:25] You're looking for growth and development.
[00:12:27] Exactly.
[00:12:28] That's the kind of attitude that gets noticed and rewarded.
[00:12:31] Maybe even lead to new opportunities within your current company.
[00:12:34] It's true.
[00:12:35] Companies are always looking for employees who are proactive and eager to learn.
[00:12:40] So by investing in your own development, you're not only increasing your earning potential,
[00:12:46] but you're also making yourself a valuable asset to your employer.
[00:12:49] It creates a win-win situation.
[00:12:51] It does.
[00:12:52] You're gaining valuable skills and experience, and your employer is benefiting.
[00:12:56] Absolutely.
[00:12:56] From your growth and your contributions.
[00:12:58] It's a much more sustainable approach than constantly jumping from job to job just for
[00:13:04] a slightly higher salary.
[00:13:05] Okay.
[00:13:06] So if you're feeling stuck in that low salary cycle, don't despair.
[00:13:11] Don't focus on building your skills, expanding your network, and creating a reputation as
[00:13:17] a lifelong learner.
[00:13:18] Exactly.
[00:13:19] Those are the things that will ultimately pay off in the long run, both financially and
[00:13:23] professionally.
[00:13:24] Yeah.
[00:13:24] It sounds like there's a real opportunity here for people to kind of take control of their
[00:13:27] own careers.
[00:13:28] Yeah.
[00:13:29] You know, even if they're starting out in a position that's not their dream job or doesn't
[00:13:33] pay what they had hoped.
[00:13:34] I think so.
[00:13:35] It's about recognizing that your career is a journey.
[00:13:39] It's not a sprint.
[00:13:40] There are going to be ups and downs and detours and wrong turns along the way.
[00:13:44] But by focusing on your own growth and development, you can navigate those challenges.
[00:13:50] Right.
[00:13:50] And really create a path that's both fulfilling and financially rewarding.
[00:13:55] So it's not necessarily about finding that perfect job right out of the gate.
[00:13:58] No.
[00:13:59] It's about finding opportunities to learn and grow.
[00:14:01] Uh-huh.
[00:14:02] Even if that means starting in a role that's not ideal.
[00:14:05] That's a great point.
[00:14:06] Sometimes you have to be willing to take a step back to ultimately leap forward.
[00:14:10] Yeah.
[00:14:10] And that might mean accepting a lower paying job at a company that has a good reputation.
[00:14:15] Right.
[00:14:16] For investing in their employees and offering opportunities for advancement.
[00:14:19] Or maybe it means seeking out mentors who can guide you and help you develop those skills
[00:14:25] you need.
[00:14:25] Absolutely.
[00:14:26] To succeed.
[00:14:26] Those are both great strategies.
[00:14:28] It's about playing the long game.
[00:14:29] Yeah.
[00:14:30] And recognizing that your career is a marathon.
[00:14:33] It is a marathon.
[00:14:33] Not a sprint.
[00:14:34] And sometimes that marathon might involve switching companies.
[00:14:37] Yeah.
[00:14:38] Especially if you hit a ceiling.
[00:14:40] Yeah.
[00:14:40] With your current employer.
[00:14:41] It can be tough leaving a job though.
[00:14:44] It can.
[00:14:45] Especially if you've built strong relationships and gained valuable experience.
[00:14:49] You're right.
[00:14:50] But sometimes it's necessary to make that change to reach your full potential.
[00:14:54] Right.
[00:14:55] Both professionally and financially.
[00:14:57] To get to where you want to be.
[00:14:58] And remember, a new employer that doesn't know your salary history might be more likely
[00:15:03] to offer you a salary that's in line with what the market's paying right now for your
[00:15:08] skills and your experience.
[00:15:10] Right.
[00:15:10] It's like hitting that reset button on your earning potential.
[00:15:13] I like that.
[00:15:14] Yeah.
[00:15:15] So it's not always about job hopping for a bigger paycheck.
[00:15:19] It's about making strategic moves that align with your long-term goals.
[00:15:23] Exactly.
[00:15:23] And that takes self-awareness.
[00:15:25] Yeah.
[00:15:25] Careful planning and a willingness to advocate for yourself.
[00:15:28] Brings us back to financial literacy.
[00:15:30] Yeah.
[00:15:31] You know, we've talked a lot about how important it is for young people to understand the long-term
[00:15:35] implications of their salary choices.
[00:15:37] Uh-huh.
[00:15:38] And be comfortable negotiating what they're worth.
[00:15:40] Right.
[00:15:40] But where did they learn these skills?
[00:15:42] That's a great question.
[00:15:44] And unfortunately, it's not always taught in school or even at home.
[00:15:49] Right.
[00:15:49] But there are resources available.
[00:15:51] There are books and articles and websites, even podcasts like this one that can help.
[00:15:57] Mm-hmm.
[00:15:58] And there are financial advisors who can help people develop a plan.
[00:16:02] So it's about being proactive and seeking out that information.
[00:16:05] It is.
[00:16:05] Absolutely.
[00:16:06] And it's never too early to start.
[00:16:08] The more you know about personal finance, the better you'll be able to make good decisions
[00:16:12] about your money, your career, and your future.
[00:16:15] It's about empowering yourself.
[00:16:17] Yes.
[00:16:17] To take control of your finances rather than the other way around.
[00:16:20] That's a great way to put it.
[00:16:21] And it's a message that I think is really important for young people who are just starting
[00:16:25] out.
[00:16:26] Yeah.
[00:16:26] So as we wrap up this deep dive into Gen Z money and the job hunt, what are some key
[00:16:31] takeaways you hope our listeners will walk away with?
[00:16:34] Well, first and foremost, I hope they'll recognize that their starting salary is just one piece
[00:16:40] of the puzzle.
[00:16:41] It's important.
[00:16:42] Yeah.
[00:16:42] But it shouldn't be the only thing driving their career decisions.
[00:16:46] And that their career is a journey.
[00:16:47] It is.
[00:16:48] It's not a destination.
[00:16:49] Uh-huh.
[00:16:50] There are going to be twists and turns.
[00:16:52] There are.
[00:16:52] That's okay.
[00:16:53] Yeah.
[00:16:54] It's about learning and growing and adapting along the way.
[00:16:58] And I also hope they'll remember that they have the power to shape their own financial
[00:17:02] futures.
[00:17:03] It takes effort and planning, but it's possible to achieve financial stability and success,
[00:17:10] even if you don't start out with a high-paying job.
[00:17:13] It's about being proactive and advocating for yourself.
[00:17:15] Yes.
[00:17:16] And never giving up on your dreams.
[00:17:18] That's right.
[00:17:19] And with that, we'll leave you with this final thought.
[00:17:21] What steps can you take today to invest in your future earning potential?
[00:17:26] It's a question worth pondering as you navigate your own career journey.
[00:17:30] Thanks for joining us.
[00:17:31] Thanks for having me.
[00:17:35] This has been From Dorms to Desks, job hunting tips for those early in their careers.
[00:17:39] A podcast brought to you by College Recruiter Job Search Site, which believes that every student
[00:17:44] and recent grad deserves a great career.
[00:17:47] Each episode, we dive into tips, tricks, and insights that will help you land your next part-time,
[00:17:52] seasonal, internship, or entry-level job.
[00:17:55] Subscribe to this podcast for free now so you don't miss an episode and visit www.collegerecruiter.com
[00:18:02] to find your next great job.
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