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How fairly compensating fresh grads can prevent job-hopping

How fairly compensating fresh grads can prevent job-hopping

In comparison to professionals with more years of experience, fresh graduates arrive in the job-hunting world with enthusiasm. Knowing that they have the skills and talent, they are open to challenges. With their salary that allows them to live independently, landing their first job is indeed a thrilling moment for a new graduate.

However, it is also a fact that job-hopping is very common among fresh graduates. Some stay in a job for a year or two, sometimes in only a few months.

In lieu of the incoming graduation season, it’s time for your company to get locked-and-loaded to give the fresh graduates the opportunity that they deserve.

What is job-hopping?  As the term suggests, it is when an employee "hops" from one job to another frequently within a year. Some say this isn't a good look for an employer, as it opens doubt about the candidate's loyalty. While others say job-hopping allows candidates to discover their true calling.

But to prevent witnessing an employee leaving their job for another, you need to understand the rationale behind the decision. Hint: it could be about the salary.

How can your company's salary offer prevent frequent job-hopping among fresh graduates?

First and foremost, money is motivation  Money is one of the reasons why people work tirelessly. It plays a huge role in our daily lives. But in this tough economy, a less than P20,000 starting rate might not be enough for them to survive. From transportation, food, bills, family support, and miscellaneous, it might be hard to allocate that limited budget within a one-month timeframe. For fresh graduates, it only gets worse.


According to research conducted by JobStreet's Laws of Attraction, a staggering amount of fresh graduates earn way less than the total PH market. The data shows that 96.7% of fresh graduates earn less than P20,000 a month, with the average salary being P16,000 monthly (depending on the industry). This means that they receive P8,000 every cut-off. With the unpaid leaves in a probationary period, they have to do everything they can to stretch their budget in a two-week period--even if it means not taking sick leave.

There are some lucky ones who can secure a job with an above P20,000 salaries, but as shown in the LOA data above, that number is small.

This overwork, combined with an uneconomical salary is a huge factor as to why fresh graduates are so hasty to find a better opportunity.

Most fresh graduates find their way into the BPO industry to kickoff their employment life. Although customer service is not everyone’s expertise, the compensation that BPO offers is definitely competitive, even for a first time employee. It’s no wonder why most young professionals flock to the industry—it’s a good starting point to earn enough income.



In the LOA research data above, there are more Gen Z candidates in the BPO sector with 22.0%, this number is quite a gap with the total PH market of only 15.1%. Meanwhile, there is a staggering number of Millennials in the industry.

This goes the same for the accounting industry, where young candidates are also more prevalent.



As evident in the data above, the BPO and accounting industry manages to offer a competitive starting rate of P20,000 above. This is regardless of age, degree, advanced skills, or experience.

But what if your company is a start-up/small to medium enterprise that is unable to compensate a 20k starting rate? 

Although a competitive salary is a very attractive aspect to every candidate, not every company has the feasibility to grant every salary demand. If you are an emerging business/enterprise, you can offer a package that is just as beneficial to their careers. Believe it or not, base salary only comes fourth to their needs!

In the LOA research data with fresh graduates, a staggering 92.0% are more interested in being provided with health insurance along with the mandatory government benefits.


At the end of the day, these young professionals only want to feel valued by providing them with long-term benefits that’ll make them feel empowered, which goes beyond money.


Provide career growth  Now, hear us out. While giving fresh graduates a fair compensation is a great motivation, career development is still their top priority--salary/compensation comes second. In the LOA research data below, career/development opportunity is the number one driver of attraction for fresh graduates. It is the only driver of attraction that lies on the top spot among all other job levels.


Fresh graduates are dynamic workers and are hungry for more, so putting them in a stagnant or routine position might not be ideal if you want to keep them. Candidates want to know if there's a chance for growth in your company, whether that's through promotions or training programs. And as an employer, you must encourage them to strive for higher achievements. You have to guarantee that career growth under your management is very possible if they perform well.

Venturing into employment with little to no experience, training them is only necessary. As seen in the LOA research data below, fresh graduates are very much keen on coaching and mentorship.


Moreover, they are also looking to be transferred to another department where they can learn new, challenging things.


Additional (but very important) tips to retain your fresh graduates:

  • Make them feel welcome. Nothing demotivates an employee more than realizing they don't feel wanted in the workplace.

  • Answer their questions. They can't know everything right away, so don't expect them to. Entry-level employees want to show their best to their boss, by allowing them to ask questions, you know that they take the job seriously.

  • Develop a warm relationship with management-employee. This doesn't just apply to respectful communication between one another. Allowing management to build a bond with their staff outside of work will ease work pressure.

  • Work-life balance. An employee who can't balance out work and personal commitments is very likely to be burnt out, which is a major reason why they hand out that two-week notice early on.

Fresh graduates can be the best set of people to have in the workplace--they're fun, curious, and passionate. To avoid being a job-hopper’s destination, your company must be ready to welcome a new breed of professionals with varying needs.

There's so much more to learn about attracting these candidates with the help of Laws of Attraction. With data-driven analysis from 18,000 respondents, the platform allows employers to find the best talents.

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