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

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

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.

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)

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

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

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).

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

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

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

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

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

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

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

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

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

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

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%

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

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

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

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%

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

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.

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.

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

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.

References
Adams, S. (2013). Do employers really care about your college grades?. Forbes. Retrieved
from http://www.forbes.com/sites/susanadams/2013/12/06/-do-employers-really-care-
about-your-college-grades
Accenture Incorporated (2013). Accenture 2013 College Survey.
Retrieved from http://www.accenture.com/SiteCollectionDocuments/PDF/
Accenture-2013-College-Graduate-Employment-Survey.pdf
Annual salary report: The top 10 highest paying jobs in the 27hilippine27. (2013).
Retrieved from http://www.jobstreet.com.ph/aboutus/highest-paying-jobs-
27hilippine27.html
Ateneo & employment: how does the ateneo give you an edge in your career?. (2010). Retrieved
from http://www.admu.edu.ph/admissions/ls-oaa/student-life/career-service
Blau, F. D., & Ferber, M. A. (1990). Career plans and expectations of young women and
men: The earnings gap and labor force participation. NBER WORKING PAPERS
SERIES. Doi: SSRN-id987258
Bovbjerg, R. R., & Hadley, J. (2007). Why health insurance is important. The Urban Institute.
Doi: DC-SPG no.1. Retrieved from http://www.urban.org/UploadedPDF/411569
_importance_of_insurance.pdf
Brunello, G., Lucifora, C., & Ebner, R.W. (2011). The wage expectations of 27hilippi college
students. Retrieved from http://www.etla.fi./PURE/expect14.pdf
Cacnio, F.C. (2012). Inflation dynamics and unemployment rate in the 27hilippine27. Economic
Newsletter, 12(2). Retrieved from http:// www.bsp.gov.ph/downloads/EcoNews/EN12-

02.pdf
Carnevale, A., Rose, S., & Cheah, B. (2011). The college payoff: Education, occupation and
lifetime earnings. Georgetown University. Retrieved from http:/www.georgetown.edu/
grad/gppi/hpi/cew/pdfs/collegepayoff-summary.pdf
Case, K., Fair R., & Oster, S. (2012). Income distribution and poverty. Principles of Economics
(10 ed., pp.367-368.) Boston: Pearson Education
Casserly, M. (2013). The top five reasons employees will quit in 2013. Forbes. Retrieved from
http://www.forbes.com/sites/meghancasserly/2013/01/02/the-top-five-reasons-
employees-will-quit-in-2013/
Chen, R. Y., & Tian, R. G. (2009). The economic connections between china and the u.s.: How
to benefit both players through international trading. Undergraduate Research Journal
for the Human Sciences, 10. Retrieved from http://www.kon.org/urc/v10/chen.html
Cruz, C., & Tan, R. (2013). Prioritizing la 28hil graduates in the work force. The
LaSallian. Retrieved from http://thelasallian.com/2013/02/28/prioritizing-la-salle-
graduates-in-the-work-force/
Dela Cruz, R. S. (2013). Schools do matter in employability of graduates. Manila Bulletin.
Retrieved from http://www.mb.com.ph/articles/389839/schools-do-matter-employability-
graduates
Dohm, A., & Wyatt, I. (2000). College at Work: outlook and earnings for college graduates.
U.S. Bureau of Labor Statistics. Retrieved from http://www.bls.gov/opub/ooq/2002/
fall/art01.pdf
Effron , J. E., & Santos, E. T. (1999). Human resource management: Master of business

administration major in management. Makati, Metro Manila: International Academy of
Management and Economics
Gittleson, K. (2012). Can a company live forever?. BBC News Business. Retrieved from
http://www.bbc.co.uk/news/business-16611040
Hall, C. W. (2008). What are the benefits of graduate school? . Retrieved from http://www.
Ndsu.edu/fileadmin/gradschool.ndsu.edu/Graduate_Fair_presentations/Benefits_of_Grad
_School.pdf
Jenkins, L. (n.d.). Raises and promotions. Retrieved from http://www.salary.com/raises-and
promotions/
Job Central Group Singapore (2012). Expected and actual salaries: how much did your peers
actually earn?. Yahoo Singapore Finance. Retrieved from http://sg.finance.yahoo.com
/news/expected-actual-salaries-much-did-peers-actually-earn-024038323.html
Kiger, B. (2009). Are you considering graduate school?.Career Journal, 6(3), Retrieved from
http://www.wcu.edu/WebFiles/Career_Journal_march_09.pdf
Malig, J. (2011). UP, ateneo, la 29hil grads hired faster, paid more. ABS-CBN news. Retrieved
from http://www.abs-cbnnews.com/-depth/01/11/13/ateneo-la-salle-grads-hired faster-
paid-more
Misra, R., & McKean, M. (2000). College students’ academic stress and its relation to their
anxiety, time management and leisure satisfaction. American Journal of Health
Studies, 16(1), Retrieved from http://web.a.ebscohost.com/abstract?direct=true&profile
=ehost&scope=site&authtype=crawler&jrnl=10900500&AN=3308416&h=xDpChBNnL
T70WCZvu%2bcOo2lWqFmNIbfRUqhdae2erws%2biVr2CycaDoQB9WvXopBRnhMqt
SkjkoVJZOwvZnANUQ%3d%3d&crl=c

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

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

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) _______________________

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)__________________________

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

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
10. Do you think Philippines offers high compensation rate compared to other countries?
Yes
No

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

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?

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

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).”

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.”

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

Recommended

Recommended

More Related Content

What's hot

What's hot (6)

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

Similar to A Descriptive Study on the Difference between Expected and Actual Entry Level Salary of Graduating Students in De La Salle University (20)

Recently uploaded

Recently uploaded (19)

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