- Higher salary projections. With an overall projected average salary of $76,736, engineering majors are expected to be the Class of 2024’s top-paid graduates, according to a National Association of Colleges and Employers report.
- Strong job market. More than three-quarters of employers represented in the report characterize the job market for new college graduates as “very strong.”
- Recruitment strategies. Organizations need to market themselves to this graduating class by highlighting not only the pay and benefits they offer, but also the social and environmental footprint they have.
Salary projections for those earning bachelor’s degrees in 2024 are higher than they were for last year’s group, according to a new report from the National Association of Colleges and Employers (NACE). Engineering majors are expected to be the Class of 2024’s top-paid graduates, and their projected average salary of $76,736 represents a 3.1% increase over last year’s projections.
The figures reported are for base salaries only and do not include bonuses, commissions, fringe benefits or overtime rates. The report provides detailed salary projections by academic major and degree level, along with breakdowns by both industry and geographic region. Data contained in the report was obtained by surveying employer members of NACE from Oct. 4, 2023, through Nov. 30, 2023.
As was the case last year, those earning computer science degrees are expected to be second on the list of top-paid majors. Their projected 2.7% increase, to $74,778, is an upswing from the 4% decrease computer science majors from the Class of 2023 were expected to experience.
The average salary projection for graduates in math and science is $71,076, almost 6% greater than last year’s average projection. Business graduates are expected to earn 3% more than they did in 2023, raising their projected average salary to $63,907.
In addition, business majors account for six of the top 10 bachelor’s-level degrees most in demand among employers; computer science and engineering majors round out the list. At least 60% of responding employers plan to hire finance, accounting and computer science majors.
Despite the growing trend of companies no longer requiring a college degree for open positions, NACE data shows that new graduates are still in demand.
Nearly 70% of respondents to a previous NACE survey said their entry-level positions required a bachelor’s degree, noted Mimi Collins, NACE’s director of communications. When asked whether there had been any discussion about dropping those requirements, she added, 26% said there had been talks but there was no indication of any action taken.
“Salaries increased because employers have a demand for these young workers,” Collins said.
Standing Out in the Hiring Crowd
With more than three-quarters of employers in NACE’s recent survey characterizing the job market for new college graduates as “very strong,” it’s more important than ever for organizations to stand out among prospective employees.
Offering graduates things like job security, opportunities to develop skills and good benefits packages simply isn’t enough to attract the best and brightest, Collins said. Employers need to invest in their recruiters, whom she described as the “front line” of any hiring organization.
“When we asked students how important the actual recruiter is, 61 percent said they could see themselves working there due to the recruiter,” she said. “Sixty percent also said their recruiter affirmed they had something to contribute to the organization.”
But the war for new talent won’t be won with a friendly recruiter or a generous pay package and the promise of job security, said Boncho Bonchev, senior principal, career, at Mercer.
“This is not about ‘You will be here forever’ or ‘You will retire from here,’” he said. “It’s about immediate engagement with [prospective employees’] interests and connecting their personal and social interests to the organization’s objectives and priorities.”
Members of Gen Z tend to make strong use of social referrals, Bonchev noted. “If their beliefs connect with the cultural identity of an organization, then they will promote it,” he said, citing internal research.
“It’s exponential compared to other types of employment segments,” he added. “So, organizations need to market themselves not only for pay and benefits, but also for the social and environmental footprint they have.”
Personalizing Total Rewards
Because the Class of 2024 is going to be a particularly diverse group, employers will need to take a unique approach to compensation and rewards, said Gordon Frost, global rewards solution leader at Mercer.
"Previously, employers had a one-size-fits-all total rewards program,” he said. “But now, leading employers seek a more personalized total rewards solution so a new employee can tailor it to get exactly the package most relevant to them.”
To that end, Frost encouraged employers to leverage technology like AI and predictive analytics to offer rewards to employees much in the same way Amazon, Netflix and other common consumer-grade platforms make suggestions. “If it’s just about salary,” he said, “it’s not a winning proposition.”
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