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DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 1
A Descriptive Study on the Difference between Expected and Act...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 2
A Descriptive Study on the Difference between Expected and Act...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 3
The word salary originated from the Middle-English word “salar...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 4
labor economists perceive that expected salary and returns to ...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 5
for at least one month in a year. Effron and Santos (1999) str...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 6
a significant head start in their careers compared to graduate...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 7
This study would determine the expected starting salary of gra...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 8
level salary given to fresh graduates and the actual phenomena...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 9
2.999-2.500 which is equivalent of “very good” or “good” based...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 10
preoccupied. Probably, graduating DLSU students balance acade...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 11
educational attainment results to higher lifetime earnings. A...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 12
Unilever. It seems that graduating DLSU students want to work...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 13
Independence,” a recent trend in the 21st
century of increase...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 14
21,000 to PhP 30, 000. In addition, the choice PhP 10,000 to ...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 15
industries earn a monthly average of PhP 50,000 to PhP 120,00...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 16
supported by I6, in which R1 stated that UP, ADMU and DLSU st...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 17
United States and other western countries happens because eco...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 18
Table 12 presents the companies’ preference regarding the uni...
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1-25 % 20%
26-50 % 53.3%
51-75 % 26.6%
76-100 % 0%
Table 13 s...
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opportunities.” In line with this, Meghan Casserly (2013) sta...
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basic compensation. Hence, most of the company respondents fo...
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Table 17 shows the percentage of companies who look upon on a...
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concisely. Moreover, Effron and Santos (1999) state that rewa...
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1. Graduating DLSU students have higher entry level salary ex...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 25
The results are significant mostly to college students and em...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 26
universities believe that they are entitled to higher entry l...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 27
References
Adams, S. (2013). Do employers really care about y...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 28
02.pdf
Carnevale, A., Rose, S., & Cheah, B. (2011). The colle...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 29
administration major in management. Makati, Metro Manila: Int...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 30
Oehrlein, P. (2009). Detemining future success of college stu...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 31
The Pros and Cons of Private Colleges. (n.d.) The Pros and Co...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 32
Appendix A
Sample Student Survey
Greetings! We are Abigail Bu...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 33
9. What is your expected salary once you have reached your pe...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 34
Appendix B
Sample Company Survey
Greetings! We are Abigail Bu...
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PhP 21, 000 to PhP 30, 000
PhP 31, 000 to PhP 40, 000
PhP 41,...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 36
Appendix C
Sample Business Letter
March 14, 2014
Mr. Jaffy T....
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Noted by:
Jose Antonio Lorenzo L. Tamayo
Professor - ENGLRES
...
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9. Do most employees stay for more than a year?
10. What are ...
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that way, it will be measured depending how he or she will do...
DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 40
Question 8: What are your bases for promotion?
“In our compan...
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A Descriptive Study on the Difference between Expected and Actual Entry Level Salary of Graduating Students in De La Salle University

This study focuses on showing the entry level salary expectations of graduating students of De La Salle University in comparison with the actual entry level salaries and if there are irreconcilable discrepancies between the two salaries

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A Descriptive Study on the Difference between Expected and Actual Entry Level Salary of Graduating Students in De La Salle University

  1. 1. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 1 A Descriptive Study on the Difference between Expected and Actual Entry Level Salary of Graduating Students in De La Salle University Abigail D. Buque & Prabhjot S. Gill Students, College of Liberal Arts and School of Economics, De La Salle University February 4, 2014 Abstract In the Philippines, students enter the tertiary level of education and envision themselves to complete their chosen degree programs and eventually work with high salaries. Therefore, De La Salle University (DLSU) students also have this expectation given that DLSU is one of the so-called “Big Three” universities together with University of the Philippines-Diliman (UP-D) and Ateneo De Manila University (ADMU). The said universities are believed to produce graduates who earn more than graduates of other universities. This study, then, focuses on showing the entry level salary expectations of graduating students of De La Salle University in comparison with the actual entry level salaries and if there are irreconcilable discrepancies between the two salaries. Data were gathered from distributing online surveys to ten (10) graduating students from each of the six (6) out of seven (7) colleges and one (1) school of DLSU. Moreover, an online survey questionnaire was prepared for fifteen (15) companies from the cities of Makati, Pasig and San Juan. To further support the conducted online surveys, the researchers also interviewed a recruitment specialist. The research showed whether DLSU graduating students do have relatively higher expected salaries than the actual salaries offered by companies to fresh graduates. Keywords: entry level salary, actual salary, expected salary, basic salary, work, companies, perception, students, De La Salle University
  2. 2. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 2 A Descriptive Study on the Difference between Expected and Actual Entry Level Salary of Graduating Students from De La Salle University A salary is a form of periodic payment from an employer to an employee, which maybe specified in an employment contract. Salary is one of the factors that individuals consider when finding a job. Effron and Santos (1999) explained that salary is a way to boost employees’ work effectively. Furthermore, it is also the companies’ way of motivating their employees to work effectively. Victor Vroom (as cited in Santos, 1999) formulated the “Expectancy Theory” wherein career decisions of people are based on expected workplace and salary. For this reason, many aspiring job applicants desire to have a high salary. However, it is inevitable that some people may not get their desired salary. “Despite a general earnings boost conferred by a degree, earnings may vary greatly depending on the degree type, age, gender, race or ethnicity, and occupation of an individual” (Carnevale, Rose & Cheah, 2011). Salary in the contemporary era has more to do with the invisible hand theory conceptualized by Adam Smith where the average salary always fall in the equilibrium of supply and demand of labor. Likewise, globalization has fostered intense competition among domestic and international firms. Strong international competition constrains businesses from increasing prices even when demand of rises and unemployment declines (Cacnio, 2012). The idea of a free market where the amount of salary compensated is decided by firms is an issue for low-paying jobs, most of which are mundane and repetitive. A minimum wage is enacted to counteract the chance for firms to exploit slave labor. In line with this, students of De La Salle University have higher expected entry level salaries compared to the actual starting salaries of their desired work.
  3. 3. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 3 The word salary originated from the Middle-English word “salarie,” which is derived from the Latin word “salarium” meaning pension. “Salarium” was deduced from salz or salt; which was an expensive commodity in the 13th century. Salary, as defined in Merriam Webster (2014) is a “fixed compensation paid regularly for services.” In addition to that, Oxford Dictionary (2014) defines salary as “a fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.” Salary has also a direct relationship to work experience. Case, Fair and Oster (2012) stated that human capital is the stock of knowledge, skills and talents that people possess. It can be inborn or acquired through education and training. Case, Fair and Oster (2012) also claimed that people learn their jobs and acquire “firm-specific” skills when they are on the job. Thus, in most occupations, there is a reward for experience. Pay scale often reflects number of years on the job, and those with higher experience earn higher wages than those in similar jobs with less experience (Case, Fair and Oster, 2012). However, college students also expect a relatively higher entry level salary than the actual entry level salary in the market. Moreover, students with higher grade average (GPA) expect higher salary than other students. Adams (2013) stated that large manufacturing corporations like General Motors, Ford, John Deere and Caterpillar recruit on campus as they all require transcripts upon application of the graduates, because they graduate consider GPA as a threshold to manage their recruitments. He also added that grades matter when recruiting students because it is really one of the indications of students’ ability or competence to the job. In addition, as compensation for those with a college degree continues to rise, more high school students might choose to go to college an choose careers that are high- paying (Dohm & Wyatt, 2002). In a study conducted by Brunello, Lucifora and Ebner (2001)
  4. 4. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 4 labor economists perceive that expected salary and returns to education determines the academic performance of college students and serves as motivation to attain their chosen degree programs. The study concluded that European college students expect higher salaries than the actual salaries given in their respective career choices. Likewise, Accenture Incorporated (2013) discovered a gap between the graduating students’ expectation about formal training and salary and the actual setting in the corporate world; only fifteen (15) percent of graduating students expect to receive a salary of $25, 000 yearly, as compared to thirty-two (32) percent of 2011 or 2012 who are currently employed declared that their salary is $25,000 or less per annum. Moreover, in a study conducted by the Bank of Montreal Poll (as cited in Wang, 2013) entitled “Graduate Salary Expectations Unrealistic,” fresh graduates expect a starting of $50,668 which is higher than $45,000; the average salary of an employee with two-year working experience. Correspondingly, in a study conducted by The Ministry of Education Singapore (as cited in Job Central Group Singapore, 2012) forty (40) percent of Engineering graduates expected to earn S$3,000 to S$3,499 monthly, whereas their actual entry level salary only ranged from S$2,850 to S$3,000. In Business and Accountancy, their desired salary ranged from S$2,700 to S$3,100, while their actual salary only ranged from S$2, 500 to S$2, 999. This study concluded that Singaporeans expected a slightly higher starting salary compared to the actual salaries offered by companies. In the Philippines, the Department of Labor and Employment (2013) stated that basic salary is a financial reward given to employees. It may exclude the following: overtime pay, sick leave credits, cost-of-living allowances, holiday pay, night shift differential, premium pay, and other fiscal benefits. Furthermore, according to the Presidential Decree No. 851, all regular employees working in the private sector are entitled to 13th month pay; as long as they worked
  5. 5. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 5 for at least one month in a year. Effron and Santos (1999) stressed that “the flat rate of wages or salaries is only the beginning of the compensation issue.” Presently, human resource experts use the term “packages” which comprise of salaries, monetary benefits and non-cash rewards such as condominiums, company cars, graduate studies scholarships and even stock options. In addition, Cowling and James (as cited in Effron and Santos, 1999) stated “performance-based compensation can assist in implementing the strategic goals and policies of the organization, by rewarding those who meet planning targets applicable to their work.” On that account, Kanter (as cited in Effron and Santos, 1999) defined the concept of “quiet revolution” in the recent compensation policies where employers pay based on contribution, not on status. Based on the salaries posted on Jobstreet from January-March 2013, fresh graduates earn an average of PhP 16,524. Those in Legal Services earn the most, with PhP 22,348 as the average starting salary. These are just again basic salaries and do not include other forms of compensation. In line with this, the months of March and April are traditionally known as graduation months in the Philippines. Every year, during these months, millions of students from all levels of education receive their completion certificates or diplomas. These fresh graduates, particularly the university graduates and some of those who completed secondary school, try to find employment and become part of the country’s labor force. However, not all of these job seekers are able to find jobs immediately (Cacnio, 2012). Furthermore, schools affect salary and employability of graduates. Students of UP, ADMU or DLSU are ahead in terms of career because of the financial investment and caliber secondary educational background to surmount a university known for excellence, prestige and competition (Dela Cruz, 2013). In an article by Jojo Malig (2013), he stated that a study conducted by the Commission on Higher Education stipulates “graduates of the University of the Philippines, Ateneo de Manila University and De La Salle University have
  6. 6. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 6 a significant head start in their careers compared to graduates of other colleges and universities nationwide.” Although there are already studies conducted regarding the difference between the expected salaries of college students and actual salaries offered by companies, the related literature were only limited to the international level. It is then the goal of the researchers to know the expected entry-level salaries of graduating students and the actual salaries given to fresh graduates in the Philippines. This study is to ensure an added body of knowledge regarding the expectations of DLSU students on their starting salary levels. Every year, the volatility of the market increases in terms of stability; thus, every succeeding batch of students finds it more difficult to get the job that they desire. Nearly 20,000 students apply to DLSU for their undergraduate studies every year, this number continues to increase since DLSU is one of the top three (3) universities in the entire Philippines. In the study conducted by QS Quacquarelli Symonds (as cited in InterAksyon, 2013) QS World University Rankings were as follows: UP ranked the 380th university globally, ADMU ranked around from 501st to 550th , and DLSU ranked from 601st to 650th . This research would benefit the current student body of DLSU, future applicants and even other scholars looking forward to conduct research yet. A student’s decision on what course to take is heavily factored by utility, income and prestige. Income is an important factor that determines whether a given occupation receives a large supply of workforce; a larger supply of workforce; a larger increase in a median income results to an increase in the number of undergraduates applying for degree programs in that same sector according to the conducted by Ruby Chen and Robert Tian (2009).
  7. 7. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 7 This study would determine the expected starting salary of graduating DLSU students and the actual entry-level salary offered by various companies. In line with this, the paper would like to answer the following research questions: 1. Is there a difference between the expected salary of graduating DLSU students and the actual salary offered by companies? 2. What is the employers’ perception of fresh graduates from UP, ADMU and DLSU students? 3. How do universities affect employability and actual entry level salaries? The researchers chose to utilize both quantitative (survey questionnaires) and qualitative (interview) research design to answer the research questions. An online survey questionnaire via SurveyMonkey was answered by ten (10) graduating from each of the six (6) out of the seven (7) colleges and one (1) school of DLSU namely College of Liberal Arts (CLA), College of Computer Studies (CCS), College of Science (COS), Ramon V. del Rosario College of Business (RVRCOB), Gokongwei College of Engineering (GCOE), Br. Andrew Gonzales College of Education (BAGCED), and School of Economics (SOE). The respondents’ age ranged from 16- 22 years old. The researchers used this method to assess the expected entry level salary. The survey was composed of ten questions (Q1-Q10). Likewise, the researchers also conducted an online survey powered by SurveyMonkey to fifteen (15) companies of different fields; five (5) companies each from the top three (3) cities in Metro Manila with the highest per capita income namely Makati, Pasig and San Juan. These companies are Axa Philippines, PA Metro Residences Builders, Bank of the Philippine Islands, HSBC, Banco De Oro, SMDC Development, Herbalife, Manulife, Pru Life U.K, PhilHealth, Smart Communications, The Health Tube, Samsung Electronics and Cardinal Santos Hospital. The survey was created to know the real-time entry
  8. 8. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 8 level salary given to fresh graduates and the actual phenomena in the corporate world. It was consisted of ten (10) questions (S1-S10). On the other hand, an interview was conducted with (1) professional to obtain an expert’s view regarding salary and employability. There were ten (10) interview questions (I1-I10) allotted for the interviewee. The interviewee was Mr. Jaffy Salang (R1), a Recruitment Specialist at Building Care Corporation. The interview was conducted through electronic mail (e-mail). All data were collected, presented and discussed in this research paper. The two sample survey questionnaires, business letter, interview questions and transcription are all attached in the Appendix. Table 1 Percentage of the respondents’ CGPA Answer Percentage 4.000-3.500 4% 3.499-3.000 28% 2.999-2.500 36% 2.499-2.000 32% 1.999-1.500 0% 1.499-1.000 0% 0.0 0% Table 1 shows the percentage of the cumulative grade point average (CGPA) of graduating DLSU students. As presented in the table, majority of the respondents has a CGPA of
  9. 9. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 9 2.999-2.500 which is equivalent of “very good” or “good” based on the grading system of the university. Moreover, none of the respondents have a CGPA of 1.999 and below. Students of De La Salle University maintain a high CGPA because it affects employability and entry-level salary. This coincides with the theory of Rumberger (as cited in Oehrlein, 2009) which expresses that many employers judge job applicants based on their CGPA; thus one with higher grades gets his or her desired job easier. In addition, New York University Head of Career Services Trudy Steinfeld (as cited in Adams, 2013) stresses that organizations like investment banks, professional service firms and pharmaceutical companies care most about grades. Table 2 Percentage of the respondents’ effort put in to school work Answer Percentage Excellent 0% Very Satisfactory 24% Satisfactory 52% Minimal effort 20% No effort 4% Table 2 shows the effort put in to school work by graduating DLSU students. As can be drawn in the table, 52 out of 100 respondents answered that their effort is “satisfactory.” Moreover, none of the respondents answered “excellent.” This coincides with the study conducted by Misra and McKean (2000) which claims that most university students are always
  10. 10. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 10 preoccupied. Probably, graduating DLSU students balance academics, extra-curricular activities and leisure management; thus their attention is not fully devoted to one aspect of their college life. Table 3 Percentage of respondents who want to work immediately after graduating from college Answer Percentage Yes 56% No 44% Table 3 shows the percentage whether the respondents want to immediately work after graduation or not. As seen in the table, fifty-six (56) percent of the respondents want to work immediately while forty-four (44) percent do not want to. Working immediately after finishing a bachelor’s degree is a very personal decision. Fresh graduates explore different options on what to do after graduation. Others choose to have a vacation, rest or take further studies instead of getting a job. Hence, not all graduating DLSU students opt to work immediately. Table 4 Percentage of respondents who plan to take up further studies Answer Percentage Yes 72% No 28 % Table 4 shows the percentage of graduating DLSU students who plan to take up further studies. As shown in the table, majority of the graduating DLSU students desires to study in graduate school. U.S. Census Bureau (as cited in Hall, 2008) showed that having a higher
  11. 11. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 11 educational attainment results to higher lifetime earnings. A high school graduate receives an average of $1.2 million, a college undergraduate earns $1.5 million, an associate degree holder earns an average of $1.6 million, a bachelor degree holder receives around $2.1 million and a master’s degree holder earns an average of $2.5 million. Likewise, Higgins (as cited in Kiger, 2009), stated that some students attending graduate school have been laid off or have been required by employers to learn additional skills and techniques. In line with this, DLSU graduating students probably believe that pursuing graduate studies is needed to climb up the corporate ladder. Table 5 Percentage of where respondents plan to work Answer Percentage Big corporations (i.e. Unilever, Unilab, Procter and Gamble) 56% Government agencies and institutions (i.e. Department of Transportation and Communications, Department of Justice) 16% Hospitals or clinics 0% Law firms 8% Banks and other financial institutions 8% Family business 8% Educational institutions 4% Table 5 shows the percentage of where respondents plan to work in the future. Majority of the respondents desire to work in big corporations such as Procter and Gamble, Unilab and
  12. 12. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 12 Unilever. It seems that graduating DLSU students want to work in a prestigious organization since they want to reap the results of investing in a good quality tertiary education. Moreover, none of the respondents answered they want to work in hospitals and clinics. This is because De La Salle University is widely known as a business and engineering school. It offers few medical courses compared to other leading universities such as University of the Philippines and University of Santo Tomas. Hence, most of DLSU students are interested to work in corporate setting. Table 6 Percentage of ranking factors that motivates respondents to work Answer Percentage financial independence 48% 8% 24% 12% 8% 100 3.00 passion 12% 44% 20% 16% 8% 100 2.57 power and influence 16% 24% 28% 24% 8% 100 2.35 serve others 16% 16% 20% 36% 12% 100 2.14 Table 6 shows the percentage of ranking factors that motivates respondents to work. As can be deduced in the table, forty-eight (48) percent ranked financial independence first among the given factors in the survey. In line with this, Santos (1999) defined motivation as the employers’ duty to influence workers to perform more effectively; thus resulting to the achievement of common goals. Moreover, McClleland (as cited in Santos, 1999) theorized that people, in general have three acquired-needs namely power, achievement and affiliation. In a report from the Social Issues Research Centre (2009) entitled “Young People and Financial
  13. 13. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 13 Independence,” a recent trend in the 21st century of increased financial independence of British individuals aged 18-25 years old was discovered. Moreover, parents obligating children to become completely or partially independent has become a norm. Likewise, in a study conducted by Charles Schwab (2009) entitled “Young Adults & Money Survey Findings: Insights into Money Attitudes, Behaviors and Concerns of 23- to 28-Year-Olds,” fifty-three (53) percent of the respondents stated that they are “very concerned” about their future financial status. Hence, it can be drawn that graduating DLSU students desire to become financially independent on a young age. Table 7 Percentage of respondents’ expected entry-level salary Answer Percentage below PhP 10,000 4% PhP 10,000 to PhP 20,000 24% PhP 21,000 to PhP 30,000 32% PhP 30,000 to PhP 40,000 24% PhP 40,000 to PhP 50,000 4% PhP 50,000 or higher 12% Table 7 shows the expected entry-level salary of graduating DLSU students. As shown in the table, thirty-two (32) percent of the respondents answered they expect a salary of around PhP
  14. 14. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 14 21,000 to PhP 30, 000. In addition, the choice PhP 10,000 to PhP 20,000 and PhP 31,000 to PhP 40,000 both garnered twenty-four (24) percent. In line with this, Jobstreet (2013) posted the average entry-level monthly salaries for various fields: PhP 20,592 for real estate, PhP 19,776 for the performing arts, PhP 19,518 for aircraft maintenance, PhP 19,180 for publishing, PhP 19,062 for accountancy, PhP 19,769 for customer service, PhP 20,776 for education, PhP for 20, 962 for corporate strategy, PhP 20,946 for personal assistance and PhP 23,348 for legal services. Thus, most graduating DLSU students expect higher salaries of around PhP 10, 000 more than the actual salaries offered by firms. Table 8 Percentage of respondents’ expected salary when they are in the peak of their careers Answer Percentage PhP 0 to PhP 50,000 4% PhP 50,000 to PhP 100,000 16% PhP 100,000 to PhP 250,000 32% PhP 250,000 to PhP 500,000 20% PhP 500,000 above 28% Table 8 shows the expected monthly salary of graduating DLSU students once they reach the peak of their careers. As shown in the table, majority of the respondents expects a salary of around PhP 100,000 to PhP 250,000. Graduating DLSU students expect that through further education, work experiences and new-acquired skills and knowledge, their future salary gradually increases. The Bureau of Local Employment (as cited in Rodriguez, 2013) conducted a study about the highest paying jobs in the Philippines. Art director tops the list, with an average of PhP 69,286 per month. Geologist ranks second with an average monthly salary of PhP 64, 889. In addition, in an annual report conducted by Jobstreet (2013) managerial jobs in various
  15. 15. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 15 industries earn a monthly average of PhP 50,000 to PhP 120,000 depending on the field of career. Managers in the technical support service earn the highest, with an average of PhP 115,000 per month. In the senior managerial positions, salary ranges from PhP 150,000 to PhP 255,000 monthly. Senior managers in quality control, logistics, information technology and pharmacy earn the highest. Hence, the desired salaries of graduating DLSU students when they achieve the peak of their careers are within realm of possibility in the senior managerial level. Table 9 Percentage of respondents’ expected benefits aside from basic compensation Answer Percentage Travel allowance 24% Food allowance 12% Transportation allowance 12% Insurances 52% Table 9 reveals the expected benefits aside from basic compensation of graduating DLSU students. As shown in the results, majority of the respondents expects companies to provide insurances with a percentage of fifty-two (52) percent. There are different kinds of insurances but health, education and life insurances are the most essential. “Having health insurances because coverage helps people get timely medical care and improves their lives and health” (Bovbjerg & Hadley, 2007). As for educational plan, it covers the primary to tertiary education of children. It protects parents from high and unexpected costs of tuition and miscellaneous fees. In addition, Smith (2012) explains that people need life insurances because of the following advantages: additional financial security, peace of mind, inheritance to the younger generation, payment for debts and protection of immediate family members. Moreover, this is further
  16. 16. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 16 supported by I6, in which R1 stated that UP, ADMU and DLSU students ask for additional monetary benefits such as leave credits, gasoline allowances, and dress allowances. Thus, it concludes that graduating DLSU students desire other benefits aside from basic compensation. Table 10 Percentage of the companies’ operation span Answer Percentage less than a year 0% 1-10 years 33% 11-20 years 33% 21-30 years 20% 31-40 years 14% 41-50 years 0% more than 50 years 0% Table 10 shows the operation span of the company respondents. The option “1-10 years” and “11-20 years” both garnered thirty-three (33) percent. Most of the companies are considered “young” based on a normal lifespan of corporations. In an article posted on Bloomberg Businessweek (2002) entitled “The Living Company: Habits for Survival in a Turbulent Business Environment,” the average life span of companies is around forty (40) to fifty (50) years. Moreover, according to Yale University Professor Richard Foster (as cited in Gittleson, 2012) the average lifespan listed in the S&P index of most outstanding companies in the United States decreased by fifty (50) years. In 1920, the average lifespan of companies is sixty-seven years. In 2012, the average lifespan has become fifteen (15) years. This phenomenon in the
  17. 17. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 17 United States and other western countries happens because economic activities in Asia are very booming. Table 11 Percentage of hired applicants annually Answer Percentage 1-25 % 100% 26-50 % 0% 51-75 % 0% 76-100 % 0% Table 11 shows the percentage of hired applicants annually. All of the companies hire only one (1) to twenty-five (25) percent of the job applicants. Perhaps this is the reason why employment has become more competitive for both neophyte and experienced applicants. Moreover, this is supported by I4, wherein R1 stipulates that applicants need to pass pre- employment examinations and interview. Hence, applicants really compete for particular job positions. Table 12 Percentage of companies which prefer students from UP, ADMU and DLSU over other universities Answer Percentage Yes 53.3% No 13.3% It does not matter 33.3%
  18. 18. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 18 Table 12 presents the companies’ preference regarding the universities where job seekers come from. Most of the companies favor graduates of UP, ADMU and DLSU. Companies believe that students from these universities are holistically developed based on national and global rankings. In the official website of the Ateneo de Manila University, Crisostomo Ala (2010), a Compensation Analyst in Birches Group LLC stated, “The Ateneo has helped me in my employment not only by giving me the necessary skills and knowledge to become competent in the labor market, but also by training me in critical thinking which, in my opinion, is the most useful faculty in performing delegated tasks.” In line with this, an article entitled “Prioritizing La Salle Graduates in the Work Force” by Carina Cruz and Rafael Tan (2013) stipulated that DLSU alumni believe that companies set standards and choose graduates who received education from the most prestigious universities nationwide. Furthermore, Dr. Bonnet (as cited in Cruz & Tan, 2013), a DLSU Job Placement Coordinator, conducted a study entitled “Employer’s Feedback on Lasallian Graduates.” The said study discovered that DLSU graduates emanate “proficient communication skills and technical competencies in the manufacturing and engineering industries.” In addition, Effron and Santos (1999) expressed that many companies look for highly qualified students from excellent universities such as UP, ADMU, DLSU and UA&P and recruit them in the corporate world. In line with this, R1 stated that UP, ADMU and DLSU are “well renowned universities in the country. They offer the most qualified and competent candidates.” Therefore, graduates from UP, ADMU and DLSU have a head start in terms of employability. Table 13 Percentage of employees who stay in the company for more than a year Answer Percentage
  19. 19. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 19 1-25 % 20% 26-50 % 53.3% 51-75 % 26.6% 76-100 % 0% Table 13 shows the percentage the employees who stay in the company respondents for more than a year. As shown in the table, fifty three point three (53.3) percent of the companies answered “26-50 %.” In addition, none of them answered “76-100%”. The turnover rate of the companies is moderate. A significant number of employees leave the company after a year of employment. Hence, it is required for these companies to hire a number of new employees annually. Table 14 Percentage of main reason why employees resign from the firm Answer Percentage Compensation related issues 0% Disasters, death of a loved one, suffering from illnesses 0% New working opportunities 100% Table 14 shows the percentage of main reason why employees leave the company respondents. As presented in the table, all of the companies answered “new working
  20. 20. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 20 opportunities.” In line with this, Meghan Casserly (2013) stated that most employees look for five things when seeking new jobs: stability, compensation, respect, healthcare benefits and balance. When one of these factors are lacking, employees are unhappy. Moreover, R1 stated that “The most common reasons why employees resign are: a greener pasture, better working opportunities, proximity of the job, work environment, and willingness to work abroad.” Therefore, employees resign primarily because of unmet expectations from the company or new working opportunities. Table 15 Percentage of average monthly entry level salary offered to new employees Answer Percentage PhP 20, 000 and below 86.6% PhP 21, 000 to PhP 30, 000 13.3% PhP 31, 000 to PhP 40, 000 0% PhP 41, 000 to PhP 50, 000 0% more than PhP 50, 000 0% Table 15 presents the average entry-level salary offered by companies to new employees. As presented in the table, most of the companies offer PhP 20,000 and below as starting salary. This is parallel to the average entry-level salary reported by Jobstreet (2013) which ranges from PhP 19,000 to PhP 23,000. Moreover, in I5, R1 stresses that all new employees receive the same amount of entry level salary. Job applicants from UP, ADMU and DLSU are not given additional
  21. 21. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 21 basic compensation. Hence, most of the company respondents follow the average entry level salary in the Philippines. Table 16 Percentage of occurrence of an employee threatening to leave based on compensation related issues Answer Percentage Yes 6.6% No 93.3% Table 16 shows the percentage of an employee threatening to leave based on compensation. As concluded in the table, only one (1) out of fifteen (15) companies had an incident of an employee threatening to leave because of salary issues. Consequently, Effron and Santos (1999) explained the bargaining theory of wages, wherein an employee or a group of employees have the right to request or demand a higher salary in systematic process. In addition, employees have unions where representatives raise all their concern to the administration. Hence, employees do not feel the need to threaten employees that they will leave the company if their compensations do not increase. Table 17 Percentage of companies who look upon on applicant who demand higher compensations Answer Percentage Yes 80% No 20%
  22. 22. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 22 Table 17 shows the percentage of companies who look upon on applicant who tries to demand a higher pay. As can be seen in the table, eighty (80) percent of the companies try to compromise when a job applicant demands for a higher pay. However, a job applicant should be qualified to receive his or her desired based on working experience, educational background, training, acquired skills and salary history. Moreover, Effron and Santos (1999) stressed that employers do not have full control over the wages or salaries they offer. Both employer and employee organizations fix salaries. Hence, the company respondents follow the norm in an imperfect labor market. Table 18 Percentage of how often companies increase compensation of their employees Answer Percentage Every 1-6 months 20% Every 7-12 months 53.3% Every 13-18 months 26.6% Every 19-24 months 0% Table 18 shows the percentage of how often companies increase the salary of their employees. As shown in the table, eight (8) out of fifteen (15) company respondents increase their employees’ salary every seven (7) to twelve (12) months. This coincides with the statement of Jenkins (n.d.) that companies increase salaries every six (6) months to one (1) year based on performance reviews. These performance reviews must be written clearly, objectively and
  23. 23. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 23 concisely. Moreover, Effron and Santos (1999) state that rewards in term of compensation should be reviewed every year. In line with this, R1 answered in I7 that “Well, our company has a yearly salary increase depending on the Annual Performance Appraisal and the company's Return of Investment (ROI).” Table 19 Percentage of companies which think Philippines offers higher compensation Answer Percentage Yes 26.6% No 73.3% Table 19 shows the percentage of the companies’ perception of the compensation rate in the Philippines. As shown in the table, eleven (11) out of fifteen (15) company respondents believe that the Philippines offers lower compensation rate compared to other countries. In a study conducted by U.S. Department of Labor Bureau of Labor Statistics (2012), the Philippines only have $2.01 hourly compensation cost, the least of the thirty-four (34) countries included in the research. However, according to Sushil Bhasin (2011) of AON Hewitt, the Philippines is the second country in the Southeast Asian region with the highest projected salary increase at seven point five (7.5) percent. In addition, as a developing country, the salaries in the Philippines are relatively lower compared to first world countries. Overall, the data gathered from the surveys and interview consolidated three results which are significant in this research. These three findings strengthened the thesis statement which asserts that graduating DLSU students expect higher entry level salaries than what are the actual entry level salaries offered by most work places.
  24. 24. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 24 1. Graduating DLSU students have higher entry level salary expectations than actual entry level salaries offered by companies. 2. Employers favor UP, ADMU and DLSU graduates more on the national average when it comes to employability. 3. Companies do not offer higher entry level salary for the reputation of a prestigious university; they evaluate the student’s performance before assessing what compensation to give to the applicant. The results show that forty (40) percent of graduating DLSU students overestimates their entry level salary by fifty (50) percent up to based on table 7 and table 15. This could have repercussions on DLSU students once they find out what their entry level salary would be. A student experiences offset in the goals planned. Moreover, one thinks about what to do with their inflated ideal starting salary. Another interesting finding in this research was that based on the I5, where R1 cleared the notion that graduates from either UP, ADMU or DLSU are entitled to higher entry level salaries is false. One reason why students from the big three universities are employed faster and receive higher salaries is because most of the competitive and qualified students apply to the top universities. UP, ADMU and DLSU students are able to maximize the advantages of being in an outstanding university such as academic excellence, top-notch professors, merit scholarships and limited class size (The Pros & Cons of Private Colleges, n.d.). These students continue to improve even more while undergoing world tier academic studies. This eliminates the past notion that the name of the university alone would be enough to dictate a person’s salary, instead salary is based on the applicant’s qualifications which is to be reviewed by the employer.
  25. 25. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 25 The results are significant mostly to college students and employers because this research corrects misconceptions in both parties. College students are given a full disclosure on what their future actual entry salaries are and how their respective universities affect it. On the other hand, employers learn from this research how college students assess their self-worth in terms of salary. It is clear in this research that there are still college students who are not in line with what they would be getting once they have graduated from college. However, this analysis only considered college students in the Philippines who would be working locally and not as expatriates. A few other points that should be noted on what the scope of this research are the following: 1. The surveyed population of students is too small to make strong points. 2. Expected entry level salaries vary between different majors across the surveyed population. 3. The researchers were not able to conduct online surveys to multinational corporations such as Colgate Palmolive, Unilever and Procter and Gamble which most DLSU students desire to work. In line with the said limitations, in future scholars might opt to increase the student and company population survey to better encapsulate demographics. If given a longer time, future scholars could also conduct surveys to UP and ADMU students. Moreover, the future researchers could conduct surveys to top organizations from various disciplines such as education, transportation and communications, engineering, medicine and export management. Likewise, it would also be beneficial to interview more experts in the field of human resource management to further support the gathered data. To grasp a wider perspective, it is highly recommended for future researchers to interview a behavioral science expert why students from premier
  26. 26. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 26 universities believe that they are entitled to higher entry level salaries compared to other job applicants. In conclusion, graduating DLSU students expect higher entry level salaries than the actual entry level salaries offered by most companies in the Philippines. This is proven by the research survey conducted on the students and companies. This research is significant not just for DLSU students but also for other university students and employers because they are the variables in this research design. Students will acquire more awareness in their compensation plans and act accordingly to it. Moreover, graduates from UP, ADMU and DLSU have a head start in terms of employability. However, it is found in this research that employers do not determine salary based on the universities but in the skills and knowledge an applicant has.
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  30. 30. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 30 Oehrlein, P. (2009). Detemining future success of college students. Undergraduate Economic Review, 5(1), Retrieved from http://digitalcommons.iwu.edu/cgi/viewcontent.cgi?article= 1055&context=uer Republic of the Philippines, Department of Labor and Employment. (2013). Labor advisory 12. Retrieved from website: http://www.dole.gov.ph/files/LA 012-13.pdf Rodriguez, J. C. (2013). Top 10 highest paying jobs in ph. ABS-CBN news. Retrieved from http://www.abs-cbnnews.com/business/02/08/13/top-10-highest-paying- jobs-ph Salary [Def. 2]. (2014). In Merriam Webster Online, Retrieved from http://www.merriam- 30hilipp.com/dictionary/salary. Salary[Def. 1]. (2014) In Oxford Dictionary Online, Retrieved from http://www.oxford dictionaries.com/us/definition/30hilippi_english/salary?q=salary Santos, E. T. (1999). Organization and management. Makati, Metro Manila: International Academy of Management and Economics. Schwab, C. (2009). Young adults & money survey findings: Insights into money attitudes, behaviors and concerns of 23- to 28-year-olds. Retrieved from http://www.aboutschwab.com/images/uploads/YoungAdults_and_MoneyFactSheet.pdf Smith , C. (2012). 5 important reasons why you need life insurance. Retrieved from https://www.payoff.com/blog/2012/08/5-important-reasons-why-you-need-life-insurance/ Social Issues Research Centre (2009) Young people and financial independence. Retrieved from http://www.sirc.org/publik/Financial_Independence.pdf The living company: Habits for survival in a turbulent business environment. (2002). Bloomberg Businessweek. Retrieved from http://www.businessweek.com/chapter/degeus.html
  31. 31. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 31 The Pros and Cons of Private Colleges. (n.d.) The Pros and Cons of Private Colleges. Retrieved from https://www.scholarships.com/resources/college-prep/choosing-the-right- school/the-pros-and-cons-of-private-colleges/ Up retains post as top 310 philippine university, ahead of ateneo, ust, dlsu – survey. (2013). InterAksyon. Retrieved from http://www.interaksyon.com/article/70410/up-retains-post- as-top-philippine-university-ahead-of-ateneo-ust-dlsu---survey U.S. Department of Labor, Bureau of Labor Statistics. (2012). International comparisons of hourly compensation costs in manufacturing, 2011(USDL-12-2460 ). Retrieved from website: http://www.bls.gov/news.release/pdf/ichcc.pdf Wang, B. (2013) Graduate salary expectations unrealistic. Western gazette. Retrieved from http://www.westerngazatte.ca/2013/09/18/graduate-salary-expectations-unrealistic
  32. 32. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 32 Appendix A Sample Student Survey Greetings! We are Abigail Buque and Prabhjot Gill, freshmen students from De La Salle University. Please take time to answer our survey questionnaire for our Basic Research Skills or English for Specific Purpose class. Thank you very much. Name (optional): ____________________ Age:________ Sex:__________ Instructions: Please encircle the letter that corresponds to your answer. 1. What is your degree program? ________________ 2. What is your CGPA? 4.000-3.500 3.499-3.000 2.999-2.500 2.499-2.000 1.999-1.500 1.499- 1.000 0.0 3. How much effort do you put in your school work as of the moment? Excellent Very Satisfactory Satisfactory Minimal effort No effort 4. Do you immediately want to work after graduating from college? Yes No 5. Do you plan to take up further studies? Yes No 6. Where do you plan to work? Big corporations (i.e. Unilever, Unilab, Procter and Gamble) Government agencies and institutions (i.e Department of Transportation and Communications, Department of Justice) Hospitals or clinics Law firms Banks and other financial institutions Family business Educational institutions Others: (please specify) _____________________________ 7. What is your main motivation to work in the future? Rank 1-4 __ Financial independence __ Passion __ Serve others __ Power and Influence 8. What is your expected salary at your first year of work? below PhP 10,000 PhP 10,000 to PhP 20,000 PhP 21,000 to PhP 30,000 PhP 30,000 to PhP 40,000 PhP 41,000-50,000 Others: (please specify) _______________________
  33. 33. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 33 9. What is your expected salary once you have reached your peak salary? Php 0 to Php 50,000 PhP 51,000 to PhP 100,000 PhP 101,000 to PhP 250,000 PhP 251,000 to PhP 500,000 PhP 501,000 above Other (please specify)_________________________ 10. What other benefits are you expecting aside from your monthly basic salary and basic compensations (i.e. 13th month pay, sick leave, etc)? Travel allowance Food allowance Transportation allowance Insurances Other (please specify)__________________________
  34. 34. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 34 Appendix B Sample Company Survey Greetings! We are Abigail Buque and Prabhjot Gill, freshmen students from De La Salle University. Please take time to answer our survey questionnaire for our Basic Research Skills or English for Specific Purpose class. Thank you very much. 1. How long has this company been operational? less than a year 1-10 years 11-20 years 21-30 years 31-40 years 41-50 years more than 50 years 2. How many of the total applicants do you hire annually? 1-25 % 26-50 % 51-75 % 76-100 % 3. Do you prefer applicants who either graduated UP, ADMU or DLSU than those who graduated from other universities and colleges? Yes No It does not matter 4. What percentage of employees stays in this company for more than a year? 1-25 % 26-50 % 51-75 % 76-100 % 5. What is the main reason why employees resign from this firm? Compensation related issues Disasters, death of a loved one, suffering from illnesses New working opportunities Others (please specify):_____________________ 6. What is the average entry level salary you offer to new applicants? PhP 20, 000 and below
  35. 35. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 35 PhP 21, 000 to PhP 30, 000 PhP 31, 000 to PhP 40, 000 PhP 41, 000 to PhP 50, 000 more than PhP 50, 000 7. Has there been any occurrence of employees threatening to leave the company if they do not receive an increase in their compensation? Yes No 8. If an applicant tries to demand for a higher pay, would this act seem as something that should be looked upon on? Yes No 9. How often do you increase the salary of your workers? Every 1 to 6 months Every 7 to 12 months Every 13 to 18 months Every 19 to 24 months 10. Do you think Philippines offers high compensation rate compared to other countries? Yes No
  36. 36. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 36 Appendix C Sample Business Letter March 14, 2014 Mr. Jaffy T. Salang Recruitment Specialist Building Care Corporation Mandaluyong City Dear Sir Salang: Greetings! We are Abigail Buque and Prabhjot Gill, freshmen students at De La Salle University. Currently, we are writing our research paper for our English Research (ENGLRES) course. Our research paper is entitled “A Descriptive Study on the Difference between Expected and Actual Entry Salary of Graduating Students in De La Salle University.” Given your specialization in the field of Human Resource Management, we would like to conduct an online interview with you. We are hoping that you can shed light on some issues concerning our topic. In line with this, we would like to request an online interview with you. You can reach us through our electronic mailing address (buqueabigail@yahoo.com) or at this cellular phone number: 09064397224. We would appreciate your immediate response. Sincerely, Abigail Buque & Prabhjot Gill Students – De La Salle University
  37. 37. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 37 Noted by: Jose Antonio Lorenzo L. Tamayo Professor - ENGLRES De La Salle University Appendix D Sample Interview Questions Topic: A Descriptive Study on the Difference between Expected and Actual Entry Salary of Graduating Students in De La Salle University Questions: 1. How do universities affect employability? 2. Does the company that you currently work for prefer hiring UP, ADMU or DLSU graduates compared to other colleges and universities? Why or why not? 3. How do universities affect entry-level salaries? 4. Do UP, ADMU or DLSU graduates expect or demand higher entry-level salaries than the actual starting salaries offered? If yes, how do you deal with this? 5. Does the company that you currently work for give a higher compensation to employees from UP, ADMU or DLSU compared to other colleges and universities? Why or why not? 6. Do UP, ADMU or DLSU graduates request other monetary benefits aside from basic compensation? If, yes what are these financial benefits? 7. How often does the company increase salaries? 8. What are your bases for promotion?
  38. 38. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 38 9. Do most employees stay for more than a year? 10. What are the main reasons why employees resign? How do you deal with these reasons? Appendix E Transcription for R1 Question 1: How do universities affect employability? “In my opinion university affect employability in two factors. First, you need to know the specialization of each university. You must consider this because you will able to know where you will source qualified candidates in that specific job vacancy. Second, you need to know how competent the student was in that university. Today, there are lots of job vacancies, and many ask why there are many unemployed graduates. Well, it actually boils down to how your respective university makes you competent to for a particular position. Question 2: Does the company that you currently work for prefer hiring UP, ADMU or DLSU graduates compared to other colleges and universities? Why or why not? “Of course, these are well renowned universities in the country. They offer the most qualified and competent candidates.” Question 3: How do universities affect entry-level salaries? “Well basically, the fresh graduates from these universities have a mindset that they came from UP, ADMU or DLSU, so they deserved a high entry-level salary. But it does not go
  39. 39. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 39 that way, it will be measured depending how he or she will do in the pre-employment exams and interview. In my opinion, universities do not affect entry-level salaries.” Question 4: Do UP, ADMU or DLSU graduates expect or demand higher entry-level salaries than the actual starting salaries offered? If yes, how do you deal with this? *Answers in Question 3 and 4 are the same. Question 5: Does the company that you currently work for give a higher compensation to employees from UP, ADMU or DLSU compared to other colleges and universities? Why or why not? “No, we do not offer a higher compensation to the employee coming from the said universities. Our company gives fair opportunities to all employees. We are objective in gauging the salaries of our employees.” Question 6: Do UP, ADMU or DLSU graduates request other monetary benefits aside from basic compensation? If, yes what are these financial benefits? “Yes. Most of the time, graduates of UP, ADMU and DLSU ask for more financial benefits. In my experience, most monetary requests are private services, gasoline allowances, dress allowances and additional leave credits.” Question 7: How often does the company increase salaries? “Well our company has a yearly salary increase depending on the Annual Performance Appraisal and the company's Return of Investment (ROI).”
  40. 40. DIFFERENCE BETWEEN EXPECTED AND ACTUAL ENTRY LEVEL SALARY 40 Question 8: What are your bases for promotion? “In our company, we measure three things. First, he or she must past a battery of psychological assessment. Second, he or she needs to convince that executive committee that he or she really deserves the promotion. Lastly, candidates for promotions must have at least two years and above in service.” Question 9: Do most employees stay for more than a year? “Yes, the turnover rate of our company is low. It seems that we offer good work environment and variety of benefits.” Question 10: What are the main reasons why employees resign? How do you deal with these reasons? “The most common reasons why employees resign are: a greener pasture, better working opportunities, proximity of the job, work environment, and willingness to work abroad. Well, we deal with these by counter offering, performance review and counseling.”

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