In the blog last week, we evaluated the importance of researching both the organisation and the job vacancy before making any application for the post. This week, we will evaluate an often-overlooked issue of identifying a sustainable travel to work area (TWA). The reason for this is that, when graduates first enter the employment market, there are significant initial costs as well as the benefit of a salary.
Unfortunately, a growing number of graduates are unable to accept even offers of work due to the costs exceeding the salary, while others face the disheartening decision of having to leave a hard-won opportunity due to increasingly unmanageable financial pressures. Some of the common initial financial considerations are listed below.
Some financial considerations when estimating a sustainable TWA
Relocation costs
Accommodation – the further from work, the more time to commute
Travel and transport costs
Utility bills – water, gas, and electricity
Communication – mobile phones and the internet
Daily living expenses – food and drink
Work clothes
Personal grooming – to maintain your appearance
Socialising, both with new colleagues and friends after work
Insurance
Family commitments
Emergency savings
An example of basic budget estimation for graduates entering the UK employment market
The average graduate starting salary in the UK in 2022 is just over £24,000. After 20% is deducted as income tax, the net remaining salary would be around £1,600 per month.
Then, it is important to apply a simple budgeting strategy such as the 70-20-10 rule, in which the monthly salary is divided in three categories: 70% for living expenses, 20% for debt repayments and savings, and 10% for non-necessary spending. Moreover, the general rule of thumb is that rent should be below 30%. Consequently, it becomes important to consider the practical possibility of living on the budget shown below.
An alternative initial market entry strategy
A positive alternative approach for graduates seeking to enter the job market that avoids the initial financial challenges and the threat of underemployment as discussed in the blog last week is to begin with what is called a filler position.
Numerous filler opportunities can be found in the entertainment, leisure, or construction industries. This work, either part or full time, is obviously only temporary employment but the experiences and skills gained are highly valued by future employers. These include an ability to demonstrate career planning, stickability, reliability, time management, and various interpersonal communication skills. Moreover, these short periods of filler employment provide an opportunity to accumulate some modest savings that can be used to manage the initial financial pressures when entering a full-time career position.
One final alternative strategy is to participate in some form of voluntary work. Such work not only provides an opportunity to learn key employment skills, but they also help develop various positive attitudes such as social responsibility, though typically without the benefit of a salary.
Question 1
Should universities do more to encourage students to work part-time?
Question 2
Are there any other important benefits from gaining higher education beyond career opportunities?
Question 3
What factors might explain the high levels of graduate rejections at the job application stage?
In the blog next week, we will focus on how to successfully manage the initial job application process.
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