People born after 1980 have unrealistic expectations about how much money they’re going to make at the height of their careers, according to a recent study.
Upon graduation from university, individuals from the Millennial generation expect to earn a fairly realistic entry salary- $48,860 for men and $42,060 for women. These numbers are only about $5,000 (men) and $6,000 (women) higher than the actual average salaries, according to the study.
But the study also suggests that men believe they will get to a point in their career when their salaries will net them $171,036 and women $125,664 – well above the average.
“How do they know so well what their salary will be to start off but after five years they have no idea?” said Linda Schweitzer, another co-author of the study, who’s also an assistant professor at Carleton’s Sprott School of Business. “They have good info right now but they need better info for the future.”
The study surveyed 3,000 workers and students from four age brackets with an even distribution of males and females.
Schweitzer said this ambitious, though ill-informed outlook isn’t entirely unreasonable. With the majority of the baby boomers set to retire over the next 15 years, she said there will be a gap in the job market that will be impossible to fill.
“It’ll be a seller’s market,” she said.
Schweitzer said this is the major difference between the Millennial generation and the earlier Generation X.
When people from the Generation X came into the workplace on the heels of the baby boomers, they were faced with a significantly more difficult job market, she said.
“They don’t want to work like crazy like the Gen X’s had to do,” Schweitzer said.
“The difference is that they have the power to make it happen.”
What they don’t have is the patience, she said.
Both generations want a particular lifestyle, advancement opportunities, and a lot of money, but the Millennials “aren’t willing to compromise any of that,” Schweitzer said.
“They’re looking for a dream job.”
While the market will be “desperate” for the Millennial generation of workers, Schweitzer said they’re “being set up for disappointment.”
Lisha van Leeuwen, a director at BMO Financial Group, said there will always be exceptionally bright and talented people who will be on accelerated career paths. But as for the majority of the Millennial generation, she said most of them don’t fully understand the value of experience.
“They’ve grown up in a very materialistic society with instantaneous results. They aren’t used to long term investment for long term rewards,” Schweitzer said. “Their parents have spoiled them and they’ve gotten used to that . . . they don’t know that that’s not normal.”
