What Is The Average Starting Salary For A New Grad UK?
The truth is, there is no single figure for how much a graduate should be earning. But to give you an idea, the average UK starting salary is a good place to start.
What Is The Average UK Starting Salary?
According to Graduate Jobs and Think Student, a new grad can expect to earn between £24,000- £25,000 a year on average.
However, depending on the industry, some graduates may earn closer to £20,000, to begin with. Others may be offered over £30,000. It’s dependent on a variety of factors.
Fields such as technology, finance, and healthcare often offer more competitive salaries. This is because of their demand for skilled professionals. Alternatively, sectors like the creative arts or non-profit organisations may have lower starting salaries due to budget constraints.
Before you apply for a job, it’s important to research the industry to get an idea of starting salaries. Job portals and industry reports, for example, can be a great way to gather these insights. This is something you should do before you study to ensure you study for a degree that makes the most sense for your future.
If you are still unsure, speak to a professional advisor to get a more precise figure.
What Factors Affect A Starting Salary?
Salaries within the UK job market are dependent on several factors.
Industry
Industry is perhaps the number one factor that impacts wages.
Certain industries that require specific qualifications or skills may pay higher than others. For example, roles that require a specific finance, law or medical degree are likely to offer higher salaries.
This shouldn’t be all that surprising as you’ll know that some degrees are more expensive and time-consuming than others which will naturally translate into positions that are harder to get and pay more.
Education and Qualifications
A graduate's level of education and qualifications can also impact their starting salary. Someone with a master’s or PHD degree may command a higher salary than someone with a bachelor's degree. Once again, this shouldn’t be that surprising due to the same factors above.
Additionally, some companies will only hire candidates who have achieved a certain grade at university. As these jobs require higher qualifications, their salaries will likely be more competitive.
Location
When it comes to earnings, geography is a key factor to consider.
Average starting salaries in cities like London are generally higher than elsewhere. However, it’s important to remember that this is due to overall higher living expenses.
Living on a smaller salary in a city like Manchester might mean you still have more disposable income overall. Assessing your cost of living will help you decide what salary will cover your expenses. It’s essential that you understand your own financial needs so that you accept jobs that adequately pay you enough to not just survive but thrive.
Benefits
When assessing a job, it’s not just the salary that matters. Make sure to ask what else that job can do for you!
Whilst benefits may not affect your monthly earnings, they could mean free healthcare, pension contributions, holiday time and training opportunities. Sometimes the benefits can make up for shortcomings in the overall salary. The benefits can translate into massive annual savings and/or upskilling, which is sometimes better than getting paid that little bit extra.
What Else Should I Consider With A Starting Salary?
It’s important to note the starting salary is just that - the start. From here, this figure should gradually go up as you progress. It’s very common for companies to review employees' pay regularly to keep it moving up. So don’t turn down a job simply because the salary isn’t as high as you’d like it to be to start with.
However, if you find that the salary for your dream job is still not enough to support you, you may be able to earn extra on the side. If you have spare time on weekends, why not put your other skills to use? If your dream job means putting in a bit extra for a little while, then what’s the harm in that?
Side hustles are a great way to earn extra income in addition to a full-time job. And they are easy to find. Simply sign up for a platform that will help you achieve your financial goals. Not only is this a good skill enhancing experience, but they are a great way to ease financial pressure.
Conclusion
While it’s totally understandable to be thinking about a starting salary, think about the fact that you’re going to be starting a new job with your newly earned degree. It won’t be perfect right off the bat but that doesn’t mean things won’t improve over time.
Want to improve your financial literacy and work towards your savings goals? Get started with Prograd today.
