Ghana At Work: Trends in Salary Levels for Young Professionals
“Data, data, data! I cannot make bricks without clay.” This Sherlock Holmes quote can probably serve as the unofficial slogan of Brighter Investment. Here at BI, in order to make higher education more affordable for students, we operate in a very data-driven environment. We believe in a win-win situation for both students and investors, and in order to create the best product for both parties, we must track changes in graduate salary levels closely.
Building on our research in the previous years, we sent out our third salary survey to employers in Ghana between April and August 2016. These employers range from financial institutions to hospitality firms. We received 1500 data points on salary levels in positions such as communication specialists, software developers, and education coordinators. This blog will highlight some of the interesting insights.
Salary levels mostly unaffected by inflation between 2015 and 2016: We found that overall salary levels in the six sectors (business, social sciences, engineering, science, and information technology) remained largely unchanged. With an inflation rate of 16.7% year on year, graduate salary levels in the local currency grew by 17.2% indicating purchasing power for recent graduates remained the same.
Between our 2015 research and 2016 research, the Ghanaian Cedi lost 6% of its value when compared to the US dollar. This means that converted back to US dollar, the income of Ghanaian graduates grew by 10% over the same period. This growth confirms that an investment in the future income of talented university graduates in developing countries has remained inflation proof last year.
Information technology is the most important growth sector: Breaking down the data by sector, we found inflation adjusted salaries in information technology jobs to be growing by 12% year on year. Purchasing power of science graduates has reduced by 1.6% over the same period. Science graduates are still the highest earners in Ghana, but the gap with IT graduates has shrunk to 6%. It is because of these trends that Brighter Investment always invests in divers cohorts of students and keeps researching the latest developments in the job market.
Polytechnic degrees also have a good ROI: We’re seeing an increased business case for investing in students pursuing a polytechnic degree. While it is true that we found that employers generally pay less for Higher National Diploma (HND) graduates than for Bachelor Degree holders, our data shows us that the return on investment for a HND Accountancy graduate is comparable to that for a Bachelors of Accounting graduate.
We have now invested in 74 high potential students in Ghana and the first graduates have started to repay. The data suggests that the Ghanaian job market is vibrant and ripe for investment. The future is bright - join us today!