Fresh graduates get higher starting pay in 2011

And guess which job gets the highest starting salary per month?

Engineering jobs command the highest starting salary of S$2,745 per month for degree holders, followed by jobs in Legal (S$2,738) and Production (S$2,728).

In spite of the uncertainty on the global economy, fresh graduates will see employers in Singapore handing them a bigger slice of the reward pie compared to their 2010 cohorts, according to a July 2011 survey by management consulting firm Hay Group.

In Hay Group’s Fresh Graduate Pay Survey 2011, Engineering jobs command the highest starting salary of S$2,745 per month for degree holders, followed by jobs in Legal (S$2,738) and Production (S$2,728). Last year’s hot jobs can be found in Legal, Engineering and Research & Development.

The Hay Group survey, which drew participation from 100 companies across general industries in Singapore, also revealed that the average starting salary for other jobs for degree holders is S$2,593 per month.

For diploma holders, Design/Creative jobs topped the list of hot jobs, with the starting salary at S$1,854 per month. Following suit are jobs in IT & Telecommunications (S$1,826) and Merchandize Operations (S$1,818). The average starting pay for diploma holders is S$1,799 per month.

Mr Victor Chan, Regional General Manager − Singapore and ASEAN, for Hay Group’s Reward Information Services, said, “Despite the slowdown in the US and European economies, organisations in Singapore are still competing for fresh graduate talent. As a knowledge-based economy, the next generation of knowledge professionals will be in demand. This is reflected in Hay Group’s survey results as employers set a higher benchmark for the starting pay package for fresh graduates, with a focus this year on jobs in Engineering, Legal and Production. In the next 12 months, organisations are projecting a healthy forecast with regards to the starting pay for Diploma and Bachelor graduates, most notably in the Legal and Health & Environment sectors.”

Return on investment
For diploma-holders who are considering investing in a degree, the Hay Group study shows that employers in Singapore place a premium of 44.7% for degree holders over diploma holders in terms of starting salaries. The premium which employers place on a Master’s degree over general degree holders is lesser, at 11.1%.

“Rather than merely focusing on pay issues, fresh graduates should embrace career advancement opportunities to showcase a stronger value proposition for prospective employers, bearing in mind the push for productivity and growth in Singapore,” said Mr Chan.

National Service premium
Approximately a quarter of the surveyed companies said that they pay premiums to male employees who have completed National Service, with the average premium at S$166.

Mr Chan said, “This is a common practice adopted by public sector organisations although not all multinational companies practice the deployment of such a premium.”