Education is a vital facet for life. It can bang open many doorways to success. But unfortunately, even today not many people opt for higher education; there are a huge number of college dropouts who refuse to pursue any further educational program. They believe that higher educational qualifications are like a mere accessory, a luxury. But as per the present scenario, spending on education is like investing money, which would start rewarding in the due course of time.
The base salary of a person is directly proportional to his educational degree. The higher the degree, the higher will be the starting salary. As per a recent trend, it has been observed that the basic kick off salary of a post-graduate is about 125% of a bachelor, while for a doctorate holder the kick off salary is almost double the amount for a bachelor’s degree holder.
In today’s competitive world, there are a few hundreds of jobs while there are millions just waiting to grab it. There is a severe job scarcity, and in turn there is more competition for each open position. The effect of economic recession cannot be overruled, it has surely added to the competition. Thus, the employers are more likely to hire a professional with a strong educational background. Degrees and diplomas are now generally used to screen applicants, while the salary depends upon the credentials.
The impact of education on salary is as follows:
1.Key skills required
Most employers use degrees and diplomas to sift through the potential employees from all the applicants. Thus, a person with the lower educational degree automatically gets knocked off in the screening process itself. His application is barely even considered for the job. There are negligible chances for him to get the job. Therefore, the higher the degree, the more the numbers of doors are open.
2. Subject matters:
It is a common belief that a person with a higher educational degree has more knowledge about the subject than the ones with a lower education degree. Thus, he is considered as a better fit for carrying out the day to day business of the company.
3. Formal Training:
It is observed that higher degree programs concentrate more on hands-on industrial training sessions. Thus, higher professional degree holders are considered to be industry ready.
4. Chances of advancement:
It may happen that a person with a higher qualification may be temporarily placed in a team led by a leader with a comparatively lower qualification, but more experience. Therefore, in such cases the person is more likely to be considered for promotion, provided his smart skills are polished enough to make decisions like a wise one. With promotion one is entitled for a bigger paycheck.
5. Research and Development:
Higher degree programs are based on research work, especially doctoral degree programs. This shows the applicants keenness to learn about his subject. It also reflects his dedication. Thus, the companies are always eager to employ people with higher educational qualifications. Also, they are known as the masterminds behind a successful product or strategy and employers seldom want to let them go.
Remember, the word LEARN comprises of the word EARN. The more one learns, the more one earns.