Recent grads — or even just those starting a new career midstream — may wonder what sort of offer to expect when negotiating a starting salary. While it’s unlikely an early-stage hire will outearn senior management from the get-go, it can be key not to accept a pittance below the going market rates.
Since pay can vary greatly based on location or line of work, there’s no one answer to the question, “What is a good entry level salary?” The size of the paycheck will differ based on where someone lives, the industry they work in, the hiring institution or company, and other hard-to-tabulate variables.
So, how might a job seeker figure out a good entry level salary before sitting down with the new boss or an HR representative to talk pay? Here are some helpful resources to get a handle on entry level rates across the US, including tips for negotiating compensation:
Understanding Entry Level Salaries
Entry level salary information changes on a regular basis, but many job-focused websites offer insights into the going rates. For instance, ZipRecruiter, a well-known American employment marketplace, lists the average U.S. entry level salary by state , which ranges, at the time of this writing, from $12.61 per hour or $26,219 per year in North Carolina to $17.09 per hour or $35,750 per year in New York.
Still, even state-by-state averages don’t show the whole picture. Although more than half of US states have minimum wage requirements higher than the federal minimum wage, which remains set at $7.25 per hour, the amount an early-career hire might expect can also vary by county and city within the same state.
According to Glassdoor, the average entry level salary in the Jacksonville, FL area is $14 per hour, whereas the average in the Miami-Fort Lauderdale area is significantly higher at $16 per hour.
Along with location, the industry one works in can play a big role in what kind of starting salary a new hire might expect. For instance, a data scientist at a tech company might be able to earn as much as $95,000 right out of the gate, while a newly minted journalist might expect something closer to $30,000.
(Psst: early-stage college students might want to align their eventual courses of studies with one of these high-paying entry level jobs.)
One way to grasp what sort of salary that might be expected is targeted research on the specific industry, location, and even position and company.
Researching a Good Entry Level Salary
Recent grads wanting to understand if they’re being offered current market rates for a particular job (or location) can turn to the internet to research details. Some sites that might offer resources for those job seekers include:
Payscale , for example, allows employees to create custom “pay reports” based on their job title, years of experience, and city.
Salary.com offers a similar feature, allowing job seekers to search for positions by keyword and compare them accordingly.
Glassdoor is another well-known web resource that publishes employee-generated information on salary by specific company and position. It also hosts reviews by current and former employees, which may help a job applicant learn more about what it’s, actually, like to work there. (In some cases, Glassdoor lists interview specifics that could help future interviewees better understand what’s expected from them).
After researching average pay by role, location, and company, job seekers might also next want to mull over how to negotiate an acceptable offer.
Negotiating a Higher Offer
So, what can a job seeker do if their dream job doesn’t (initially) come with a dreamy paycheck? What are some tips for negotiating?
While it’s not always possible to eke precious water from a parched stone, coming to the negotiating table prepared to negotiate can help job applicants angle for a more generous compensation package.
Negotiating a salary can be scary, especially for a recent grad who’s not used to the salary tango. Nevertheless, negotiating an offer up front can have a significant effect on one’s paycheck (and, by extension, one’s long-term earnings).
One Glassdoor press release estimated that the average US employee could be earning 13.3% more—if they negotiated.
Preparing to Negotiate
How might a new hire negotiate a higher-paid entry level salary? Well, having a well-researched entry level salary forecast in mind is one place to start.
Of course, it’s not likely that early-career hire can simply negotiate up to a data scientist’s $95,000 salary if that’s not the norm for the role or location they’ve applied for.
But, it’s still possible to make the case to hiring managers for why a higher rate is merited. When making this case, it could be helpful to give concrete examples of how a worker’s current skills might benefit the company. In these conversations, it may be possible to push an offer up a few percentage points (especially when the skills required are in high demand).
Glassdoor suggests that job seeker’s practice their negotiating pitch. Doing so ahead of time can help some to hone a confident delivery style. What’s more, knowing why a higher salary is being requested could also allow some new hires not to sell themselves short. Adopting negotiation tactics might help some new grads or career changers to meet their salary goal (or inch closer to it).
On top of baseline salary, it’s also possible in some roles and industries to negotiate for other valuable forms of compensation—such as, fitness stipends, work-from-home time, funding for continued education, and more.
Of course, negotiating a good entry level salary is not necessarily an easy undertaking. The Harvard Business Review warns soon-to-be negotiators to prepare for tough questions, especially where salary is concerned. Interviewers may put candidates on the spot, asking if they’re considering other offers or if the position is their top choice.
In an already uncomfortable situation, some candidates may stumble or misspeak if they don’t know how to justify what they’re asking for.
One simple place to start is asking whether it’s possible to negotiate the offer in the first place. Candidates may also inquire about future career growth and promotion potential, which could lead to a bigger salary later down the road.
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Navigating Post-College Life, Financially and Beyond
Navigating life after college can be exciting and challenging. Trying to make ends meet on an entry level salary might be particularly tough, especially when on the hook to pay back student loans—as 54% of young adults who went to college took on some debt , including student loans, for their education.
A flexible and adaptable approach to finances and where one lives could make the transition to post-college life more manageable.
For instance, recent graduates who are in a position to choose a new place to live, might opt to move to one of the top cities for college grads. Cities like Houston or Nashville (to name just two) have boasted strong economies, affordable rent prices, and low unemployment rates.
Learning how to make a budget can also go a long way toward covering common expenses—even when one’s starting salary leaves a few zeroes to be desired. That said, there’s only so much instant ramen to eat or cups of coffee to skip out on.
For those feeling weighed down by student loans while earning an entry level salary, additional options exist. Those with outstanding federal student loans, for example, may qualify for income-driven repayment plans, loan forgiveness for public service, or deferment.
Refinancing educational debt with a private lender is one extra option that could save money each month—or help the borrower pay off student loans faster.
Student loan refinancing may allow recent grads to make lower monthly payments toward their existing debt, freeing up some extra cash. Or, it could help a borrower to save money on interest paid on the loan as a whole, allowing them to pay off the debt total faster.
It’s important to note that refinancing with a private lender causes borrowers to forfeit certain guaranteed federal benefits, like income-driven repayment (IDR).
SoFi refinances both federal and private student loans, offering no application fees and no prepayment penalties. Those who refinance their student loans through SoFi get access to a wide range of exclusive member benefits, including career coaching, financial advice, and more—at no additional cost.
Checking your refinance rate won’t have an affect on your credit score and could be the first step toward saving thousands of dollars—or making more affordable monthly student loan payments.
SoFi Student Loan Refinance
If you are looking to refinance federal student loans, please be aware that the White House has announced up to $20,000 of student loan forgiveness for Pell Grant recipients and $10,000 for qualifying borrowers whose student loans are federally held. Additionally, the federal student loan payment pause and interest holiday has been extended to December 31, 2022. Please carefully consider these changes before refinancing federally held loans with SoFi, since in doing so you will no longer qualify for the federal loan payment suspension, interest waiver, or any other current or future benefits applicable to federal loans. If you qualify for federal student loan forgiveness and still wish to refinance, leave up to $10,000 and $20,000 for Pell Grant recipients unrefinanced to receive your federal benefit. CLICK HERE for more information.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
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