Getting your first job is an important life milestone for young people. And with the current red-hot labor market, one expert says new graduates entering the job market for the first time have a significant amount of bargaining power to get the best deal out of their first job.
Personal finance expert Robyn Thompson sat down with CTV’s Your Morning on Friday to offer some tips for young people on how to approach their first job.
NEGOTIATING PAY
When it comes to negotiating pay, Thompson says there’s more to it than just the base salary. Many jobs also come with bonuses and pension plans, and Thompson says new employees should get acquired with how these programs work.
“You want to understand, is there going to be a bonus paid for this position? If so, how much? How often? And this is based on my performance or is it based on the company’s performance overall?” she said.
On top of that, paid time off is another crucial part of the employment contract that Thompson says many employers are willing to negotiate, given the tight job market.
“We all work for the necessities. We all work to keep the lights on. But beyond that, we work for our life. We work for the things that we enjoy, whether that’s travel, whether it’s staying home, building a garden or becoming a barbecue master,” said Thompson.
PRIORITIZE SAVING
When the paycheques start coming in, it can be tempting to increase spending. But Thompson recommends dedicating 10 to 20 per cent of your pay to growing personal savings.
“If you get into a job and you start spending everything right away, then you’re going to create a space where you have the instant gratification all the time and you’re not delaying your purchases for the future,” she said.
Setting up automated savings can be a good way for young earners to develop good saving habits and be set up for the future, Thompson says.
PERSONAL GROWTH
Your first job is most likely not going to be the only job you’ll work for the rest of your life, so Thompson recommends making sure there’s adequate room for career growth and development in the company.
“Make sure when you’re going, negotiate – what is the training? What is the development? What can you take from this job and to jobs in the future?” she said.
“Make sure they have an allocation for you to be able to level up your skills so you can take that and move it forward into your future,” Thompson added.
With the full interview with Robyn Thompson at the top of this article.
