Conversations with fresh grads at their first jobs

So I have been speaking to a number of newly minted graduates about their job hunt. Somehow, it seems that most fresh grads I meet share the same thoughts, that RM2,500 is not enough as a starting pay. Here are excerpts of their input:

Miss A works in a multi-national firm that does auditing work for companies. Her starting base was RM3,000 a month, and she lived in an apartment unit shared with her other siblings. It should be noted that the apartment belongs to her parents, and she works in KL City. Her elder sibling works in an O&G firm, while the youngest is still studying. This graduate landed her first job quite quickly, and so there was not much of gap between finishing her degree and starting her first job. In addition, she had been promoted recently, and the salary scheme at her company had just been revised. I should also add that she received her professional degree from a local branch of a British university. She inherited her parent's not-so-new car, and has taken over paying the monthly installments. 

Miss B graduated from a local public university, with a degree in applied chemistry. It took her nearly 3 months to secure a job with a diagnostics lab attached with a pharmacy, and her base pay was RM2,000 a month. Her work required that she move to Pahang, and she has to rent her own place of stay. She does not have her own transport, and regularly takes the train back to her hometown on weekends. She is now contemplating a job change and move to the city for a higher pay job.

Miss C is not really a fresh graduate nor is she new to the job market, but I am including her in this because I realized that not all young persons entering the job market will posses a degree or diploma. In addition, I also realized that not all persons in the job market are able bodied. This person only has her SPM certificate, with a very average result. She is also paraplegic, and while still able to move about, has difficulties in doing so. Due to her condition/situation, her family had pretty much abandoned her since young, and she has been relying upon her own self all this while. She actually had a job as an administrative assistant paying a base of RM1,000 three months prior, but was unlawfully retrenched. After struggling to get by all this time, she has finally landed herself a good job in sales and marketing, with a base pay equivalent to an entry-level position. It should be noted that in addition to her regular job, the government of Malaysia also gives her a monthly disability stipend of RM500.

If was not already obvious from the start, all the fresh grads I've spoken with above are female. And no, I am not being biased towards a particular gender. It is just that I don't meet that many male fresh graduates (a growing phenomenon at the universities and colleges nowadays). 

Anyway, what stands out from the above are as follows:

1. The university you graduate from, and the kind of degree you earn matters; Miss A graduated from a foreign university with a professional degree, and landed a highly desired job almost immediately upon graduation; compared to Miss B who graduated from a local public university with a generic degree.
2. Parental Economic Outpatient Care, a term coined by the amazing authors of the book "The Millionaire Next Door", Dr. Thomas J. Stanley and Dr. William D. Danko, is highly evident with Miss A. In fact, this kind of parental care for adult children is common among Gen X (their children being Gen Y and Millennials), It is also most apparent with households of the higher middle income group. I would suggest you get your hands on Dr. Thomas' and Dr. William's book, and read it well. It really opened my mind.
3. Perception is important. Comparing the psyche of Miss A, B and C reveals some interesting points. While by comparison, Miss A appears to be far better off than Miss B, especially given that she does not need to worry about living arrangements, transportation, and even her salary base is considerably higher, it seems that Miss A still perceives that her income level and quality of living does no commensurate with her accustomed lifestyle. Miss B is less better off than Miss A, having to rely on herself more, but compared to Miss C, who is completely self-reliant, it appears that Miss C is more contented with her current state of living.

Experience is like a tree, and talent is like its shadow. The shadow is what we think of it, but the tree is the real deal.


Now, a lot of Gen X and older do give sharp criticisms about Gen Y and the Millennials. However, based on my own observations and findings, I have found that the older generation are just as culpable as Gen Y and the Millennials for the situation we are facing now. After all, Gen Y and Millennials are the products of their generation. How they are now, their mindset and attitudes towards life, is as a direct result of the older generation's influences.

Nonetheless, all this talk really got me thinking: Is it really that hard to live off RM2,500 a month as a fresh grad? I remember my first salary was just RM1,600 (about 15 years ago), and applying Malaysia's average inflation figure of 2.53% per annum as base salary increment to this, we would arrive at RM2,327.47, whereas an inflation figure of 3% would bring us to RM2,492.75 which is close to the RM2,500 salary offered by many employers.

Or maybe Malaysia's real inflation rate does not apply to fresh graduates, as their personal inflation rate may be running at a higher level than the average Malaysian?

Hmmm.... an intriguing thought. Something I should look into deeper in the near future.


Sincerely,
MJ