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Millennials are arguably among the less paid individuals in the workforce today and this phenomenon is mainly owed to the fact that they have been massively misunderstood. Explanations that attempt to demystify this occurrence have all pointed to the fact that the input of millennials is undervalued which means the employers don’t take the step to actually pay for the contribution that millennials provide. Here are 13 more reasons that expound on why millennial salaries are disproportionately low.
The job market is less fluid
Millennials have been adversely affected by the lack of fluidity experienced in the job market. This has led to them taking up jobs at the salary cap that an employer sees fit since demand and supply of workforce is not fluid. With graduates flooding the job market, recruiters have the advantage since they have the options at hand as opposed to the millennials.
The job field requires specialty skills
When considering the available job opportunities, majority require specialty skills which the millennials are yet to acquire. This then means that the millennials will only be considered for support roles which then attracts low wages since they are seen as the supporting cast.
Technology has eased responsibilities
Technology has brought with it both the good and the bad since it has made work easier but equally eased responsibilities that would normally be considered as job opportunities. Technology has led to the availability of only the specialty jobs since most of the core work is done by machinery and technology. With significantly less responsibilities, the wages are reduced significantly.
Millennials lack experience
The employers demand a specific set of skills and experience and these are elements that millennials lack. With this in play, millennials are only given the chance to stay on for a job if they accept the low wages since the company portrays their inexperience as a limiting measure.
Economic changes
Recessions in the 2000s that hit hard have never allowed the workforce to regain its foothold and it is unfortunate that millennials are reaching their working years during this time. As businesses recover and others try to flourish, they only provide jobs with a low income setting in order to sustain growth and avoid spending too much on costs that run the business which includes salaries.
Low minimum wage setting
The wage distribution setting is massively skewed which means minimum wage is way lower than in the previous years. Currently, millennials approximately earn 58% of average wage but in 1980 for instance, the workforce used to get 84% of average wage. It is this wage inequality that means salaries for millennials remain low.
Millennials get entry-level jobs
Millennials are at a massive disadvantage especially since they are fresh graduates and end up on the wrong end of the spectrum. Most millennials are only considered for entry-level jobs and this is mainly a consequence of having late career take-offs.
Negative stereotypes about millennials
One major stumbling block to higher wages for millennials is the negative rhetoric being peddled around in the industry. Millennials have had all sorts of negative stereotypes brought forward to discredit them including being labelled as lazy, entitled and lacking work ethic. This has meant employers are not willing to pay them higher wages.
High unemployment rates
Though it comes in as an indirect cause of low salaries, high unemployment rates have meant that the job market is increasingly stocked with individuals ready to take up any available jobs. With this desperation, recruiters set low salaries knowing they will still command a following of unemployed millennials ready to take the offer.
Company policies
Companies are targeting doing more with less and this means salaries for employees have to be set to the minimum possible. Company policies include the giving of more duties to existing employees while not adding the salary as opposed to addition of the workforce. This translates to millennials handling more responsibilities on a salary that does not reflect the duties.
Lack of negotiation power
A weak negotiation strategy is massively costing the millennials. Another factor is that the labor force is huge and the unemployment rates are through the roof. When both are coupled with the urgency of millennials when it comes to taking up available job positions, the power of negotiation rolls over to the employer which then leads to millennials being underpaid.
Short-term job setting
Most millennials are not landing the permanent or long-term jobs. Many are taking temporary jobs primarily targeting career development which means employers only offer low wages since they know they can establish longevity with the millennials.
Millennials complete menial tasks
Repetitive tasks that are learnt in the shortest time possible are what millennials are offered since most jobs are specialty jobs and millennials lack the experience to handle the same. Being considered for menial labor means the salary will be disproportionately low.