Starting salary has increased by 17%

The 30th edition of the Hudson Reward Survey, encompassing more than 230,000 salary packages, shed light on the fact that the salaries of young people (up to the age of 25) had risen by 17% over the last two years and now stand at a median amount of €2,778 per month, taking all education levels into account.

Reward Management
Paul-Etienne Siegrist

The petrochemical sector is the most profitable, followed by the IT sector

Paul-Etienne Siegrist, Senior Manager, says several factors explain this increase: It’s clear that indexation has played a role, but it does not explain everything. The current contraction in the labour market is also a factor behind the increase. In one sense, we’re seeing a demographic tension on the market. Companies need to redouble their efforts to attract qualified candidates and this is a reality that’s well understood by workers just starting out on their careers.

However, we also see differences based on people’s level of education. In general, the median salary for someone with a Bachelor’s degree stands at €2,820 per month, compared to €3,181 for the holder of a Master’s degree. That said, the industry in which someone works also affects the level of remuneration. If we look at several sectors, for example, the median salary of a young employee in the petrochemical industry ranges from €2,988 to €3,679 per month, compared to €2,719 to €3,665 per month in the banking or finance industry. And let’s not forget the IT sector, which is also one of the most well-paid, where salaries range between €2,610 and €3,297 per month for a young worker.

Fringe benefits

In this blog, we are using base salaries for our figures, but the remuneration also comes with a certain number of fringe benefits on top of the gross salary. Here we’re talking about a car, which is a highly attractive component offered to 42% of young workers with a Master’s degree and 36% with a Bachelor’s degree. This also depends on the sector, of course; the IT sector tends to grant this benefit far more frequently (72%) than the petrochemical industry (18%).

Time for a modified remuneration strategy?

These trends show a real need to reflect on remuneration strategies, as internal and external factors are sure to influence the position of workers who find themselves in demand. For the population aged between 22 and 25 years old, who desire a certain level of financial security and where it may be difficult to attract certain talents, it is now more important than ever to have a well-thought-out approach. Such a reward strategy must not be limited to financial benefits, but must also cover non-financial rewards (such as work-life balance, training and development, home/office benefits, mobility and more).

About the author

Paul-Etienne Siegrist

Senior Manager Talent Management - Hudson

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