The median salary of business school graduates in the Helsinki economic area is EUR 5,683 per month and EUR 4,800 in the rest of the country. The salary survey also revealed what has happened to the weekly workload of business school graduates and what they really think about remote work.
Suomen Ekonomit examines the salaries of its members annually. The information is based on survey data collected in November 2021. Salaries increased as follows:
In the Helsinki economic area: median income EUR 5,683 per month +3.3% compared to the previous year
In the rest of the country: median income EUR 4,800 per month +2.1% compared to the previous year
In the private sector median income EUR 5,450 per month +2.8% compared to the previous year
In the government sector median income EUR 4,850 per month +3.8% compared to the previous year
In the municipal sector median income EUR 4,878 per month +3.8% compared to the previous year
Nearly 70 per cent of respondents said that their salary had increased in 2021. By far the most significant reason for a salary increase was the general increase in accordance with the collective agreement. Subsequently, the most common reasons were an increase based on individual performance, a new position or task in the current workplace and a change to a new job.
“The general increase is important for business school graduates because it seems to be a key driver of salary increases. That is precisely why collective agreements are important,” says Riku Salokannel, Labour Market Director.
Weekly working hours of business school graduates
Business school graduates in full-time employment work an average of 41 hours per week. What is worrying is that 10% of those work 46 hours or more per week.
“Fortunately, the number of working hours has not increased, but instead has stabilised around 41 hours. Those in managerial positions work the longest weekly hours. However, it should be remembered that directors also need time for recovery,” says Juha Oksanen, Research Manager.
Respondents seem to enjoy their work: 85% are either very or quite satisfied with their work.
The popularity of remote work is solid
Remote work is remarkably common among business school graduates. One-third of respondents work completely remotely, one-third go to the workplace once or twice a week and slightly fewer than one-third go to the workplace 3–4 days a week. Only 6% do not work remotely at all.
Although there has been public discussion about the disadvantages of remote work, business school graduates have embraced this arrangement. More than half of respondents are very satisfied with remote work and almost all the rest are quite satisfied. Only 4% are dissatisfied.
Seven out of ten business school graduates think that work and leisure are well or fairly well balanced in their lives. One-third do not have a good work-life balance.
Respondents think that well-being at work could be promoted by improving interaction in the workplace, developing working methods and tools and clarifying the goals of the organisation.
Facts about the salary level survey:
3,120 respondents
Provides a cross-section of the salary level of the members of Suomen Ekonomit
The survey asked about the income of those in full-time employment in October 2021 (incl. fringe benefits)
50% of respondents were experts, 19% middle management representatives and 24% in managerial positions
The average weekly working hours of respondents was 40.8 hours
59% of respondents were women and 41% men
The average number of years of work experience of respondents was 15.6 years
How do you measure your own worth? Is it the number on your salary slip or is it something more? When you negotiate your salary, there are much more to think about than just euros.
Prepare for the Salary Negotiation
Start by looking at the salary range for someone with your level of experience and skills, in your industry. You can talk with people in your network who know the industry or even the company you are interviewing for. I also recommend that you use the Salary Radar at the ekonomit.fi member service.
Decide a range. Have in mind the number you would be happy with and also the bottom line – what is the lowest salary that you are satisfied with.
Think about your negotiation strategy. Do you start with asking a specific amount or do you offer a range? New research from Columbia Business School found that offering a range instead of an exact number, you open up room for discussion and you come across as flexible team player. But make sure the lower end of the range is the salary that you really want.
After you have given your salary request, be patient. Even if the recruiter does not answer you right away don’t start to hesitate and explain yourself – or worse, back down from your request. Be quiet and let the other side make the next move.
When you are at this stage you still have one important asset in your negotiation – your trade offs. Bring them in the negotiation table if the salary you are offered is below your happy number. If you want to have 3500 and the recruiter offers 3000 and you really want the job – that’s when the negotiation really begin!
If you hesitate to start negotiating, remember that it takes time and money to find a great candidate to fill a position. If you are negotiating about salary, the company have already invested a lot in you and actually expect for you to negotiate!
What are your Trade offs?
One way of figuring out your trade offs is to write Must-have and Nice-to-have -lists. These help you in your salary negotiations but also when you choose which jobs or companies you want to pursue.
Must-haves are components that you definitely need or want to exist in your job or organisation. These might be such as working in a global company with international career opportunities or that the company supports sustainability. They may also be more practical things like the length of commute to work or possibility to work remotely.
Nice-to-haves are things that are valuable to you but will not turn into deal breakers. For instance opportunities to learn skills that raise your own market value in the long term or chance for rapid career development may be such trade offs. Personal mentor or coach, language courses or even great extracurriculum programs may be some things that you value.
These Nice-to-haves are the trade offs that you can use when negotiating your salary. They are something so important to you that they may make up the lower salary level.
The other side of trade offs is what extra do you offer the employer. So be prepared to prove your value. If you gave a bold salary request you need to be ready to boldly explain why you are worth it. Prepare to give examples from your previous jobs, hobbies or studies what is unique in you way of working and what kind of results you have delivered – and are willing to deliver in this new job.
The Negotiation is not a One Time Opportunity
Keep in mind that if you don’t get the salary you originally wanted right now, you can ask for a job-performance review after e.g. six months. You will have a new chance to re-negotiate for a raise after proving yourself to the employer.
Our recommendations on the summer job pay of business students have once again been published. They also include a recommendation on the starting salary of recent graduates as well as thesis pay or remuneration.
Despite the summer job situation being worse than before during the past summer, the average monthly earnings of business school students increased from last year. However, annual income dropped at the same time.
The earnings of female and male students matched on an annual level: the median annual income for both was €10,000. In 2019, the figure stood at €11,000.
The median annual income for both was €10,000. In 2019, the figure stood at €11,000.
As regards the comparison of salaries paid to men and women, there was an interesting swing: In 2019, female students earned more from their summer jobs on average than their male counterparts. The median salaries for men and women stood at €2,100 and €2,149, respectively. This year, men had a clear lead over women. The median salary for men was €2,200, while the women’s median stood at €2,100.
The factor that can help explain the substantially wider gap is that the majority of the women who participated in the students’ summer job survey worked in customer service and sales tasks, which do not pay very well.
These factors increased summer earnings
Summer workers in the Helsinki Metropolitan Area earned significantly more on average than students who worked anywhere else in Finland. In the Metropolitan Area, the median pay was €2,205 while elsewhere in Finland it was €2,060.
The number of credits the students had accumulated increased the pay level. The median salary was €2,046 for those who had fewer than 120 credits and €2,359 for those who had more than 220 credits.
The amount of pay was also affected by whether or not the summer job was in the student’s own field of study. For business students, most of whom worked in their own fields, the median pay was €2,200. If the summer job did not match the student’s field at all, the median pay stood at €1,950. The difference increased significantly from the previous year.
Pay recommendations for 2021
The annual recommendations on students’ summer job pay are issued by the Finnish Business School Graduates’ working life committee. The new recommendations are listed in the table below. The recommendations are based on the business students’ summer job survey and the forecasts released by Akava Works.
Visit our pay recommendations page for the recommendations on thesis pay or remuneration and the starting salary of recent business school graduates.
Here you will find answers to common questions regarding coronavirus. Further below, you will find information for students. The instructions are updated as new questions arise.
I need personal guidance, who can I contact?
Questions concerning unemployment benefits in the event of termination or lay-off: In case of unemployment protection, you can contact the KOKO fund.
Legal services: If you are concerned about a legal issue related to your employment relationship, you can contact the legal counselling services of the Finnish Business School Graduates. Our legal counsels advise you every weekday at 9–12 without appointment, tel. +358 20 693 205. You can also make an appointment in our booking calendar.
Career services: Our career coaches are there for you when you are concerned about work and your future. You can book a telephone appointment in our calendar, and our career coach will contact you. Confidential conversations with a career coach will help you find solutions for your career, job search and well-being at work.
In matters related to being laid off, you can also contact our labour market specialists.
Note! Due to coronavirus, temporary changes have been made to laws and collective agreements. The changes are described in the replies below.
Lay-off
When can an employer lay off an employee?
An employer is entitled to temporarily lay off an employee for financial or production-related reasons. The employer may also lay off an employee in the event of a temporary decline in work amounts or the employer’s capacity to offer work. In this context, ‘temporary’ is considered to refer to a decrease in work availability or capacity to offer work lasting no more than 90 days. As an additional requirement, the employer must not be reasonably able to arrange other work for the employee, or training that meets the employer’s needs.
Due to coronavirus, a temporary amendment has been made to the Employment Contracts Act regarding laying off a fixed-term employee. The employer is entitled to lay off an employee in a fixed-term employment relationship under the same conditions as an employee whose employment contract is valid until further notice. The legislative amendment remains in force from 1 April to 30 June 2020.
The amendment does not apply to the public sector. The employer is entitled to lay off an employee in a fixed-term employment relationship with the state, a municipality, a joint municipal authority, the Social Insurance Institution of Finland, the government of Åland, the Evangelical Lutheran Church of Finland and the Finnish Orthodox Church only if the employee is working as a substitute for a permanent employee and if the employer would be entitled to lay off the permanent employee.
If the employer employs at least 20 people, the employer must conduct co-operation negotiations before lay-offs. Smaller employers must present the employee with an advance explanation.
Can you engage in other work during layoff?
Being laid off does not prevent you from accepting other work for the layoff period. However, the other work tasks may not consist of activities that compete with those of your employer, as the non-competition clauses applicable to your employment relationship will remain in effect for the duration of your layoff.
Employees must also bear in mind the precedence of the first employment relationship. If the layoff is for a fixed period, the employee may not enter into another employment contract lasting longer than the duration of the layoff. In the event that an employee is laid off until further notice and the work situation changes, the employee must be notified of the resumption of work activities at least seven days in advance, unless otherwise agreed. If an employee who has been laid off until further notice has accepted other work for the duration of the layoff, this employee has a special right to resign from the secondary employment relationship (even fixed-term employment) subject to three months’ notice.
if you are prevented from performing your work as a result of an illness, you are entitled to full pay up to the end of the ninth sick day according to the Employment Contracts Act. Collective agreements typically provide for longer periods of sick pay.
What if I am quarantined and cannot work remotely?
If you are placed under quarantine or isolation by a doctor responsible for infectious diseases, you are entitled to sickness allowance on account of an infectious disease, which is applied from Kela. The allowance provides full compensation for the loss of income. The sickness allowance is also available to the provider of a child under the age of 16 who is placed under quarantine due to coronavirus.
My employer’s instructions on the organisation of work are stricter than those of public authorities. Who should I believe? In principle, you should follow instructions issued by authorities. However, your employer is responsible for ensuring a safe working environment. You should therefore follow your employer’s instructions, even if they are stricter than those of the authorities.
What if a child falls ill with coronavirus?
An employee is legally entitled to a temporary child-care leave and to be absent from work if their child who is under 10 years of age falls ill. The maximum duration of the temporary child-care leave is 4 working days. Temporary child-care leave is an unpaid absence from work. Several collective agreements provide for paid temporary child-care leave.
If the child’s illness is prolonged, the employee may also have the right to be absent from their work due to compelling family reasons as per the Employment Contracts Act, provided that their immediate presence is necessary because of an unforeseeable and compelling reason due to the child’s illness.
Vacations
How is annual leave accrued during a lay-off?
Full-time lay-off:
An employee accrues annual leave for the days of being unable to work due to being laid off for a maximum of 30 working days.
If, under normal circumstances, the employee works less than 14 days per calendar month according to their employment contract, the employee accrues annual leave for a maximum period of 42 calendar days during the lay-off.
Part-time lay-off (for example by shortening the working week):
The employee accrues annual leave for the days of being unable to work due to being laid off for a maximum of six months at a time. If the part-time lay-off continues without interruption after the end of the holiday credit year (31 March), the calculation of the new six-month period will start after the end of the holiday credit year.
What happens to summer holidays during a layoff?
A lay-off does not affect annual leaves, which are granted in accordance with the Annual Holiday Act and relevant collective agreement provisions. The employer decides on the timing of the annual leave. The summer holiday must be granted on the summer holiday period, i.e. 2 May–30 September. The winter holiday should be granted between 1 October and 30 April. The employee is paid their normal salary during the leave.
The Act also offers opportunities to agree on the placement and carrying over of annual leave. The employer and the employee may agree that annual leave is taken between the beginning of the calendar year of the holiday season and the beginning of the following year’s holiday season. In addition, the parties may agree that the remaining days exceeding 12 working days will be taken at the latest within one year from the end of the holiday season.
The employer and the employee may agree to carry over the part of the annual leave exceeding 18 days to be taken during the next holiday season or after it. The employee has the right to carry over any annual leave exceeding 24 leave days to be taken later, provided that this does not seriously harm the manufacturing and service operations of the workplace.
What happens to already fixed summer holidays during the layoff?
If the employer has already notified the employee about the timing of the annual leave, the notification is binding to the employer. If the employer changes the timing of a notified holiday, the employer is obliged to compensate the worker for the damage they have caused. However, the employee is obliged to obey the employer’s orders regarding a rescheduled holiday if the holiday has not yet begun.
According to the public sector collective agreements, the employer can transfer or suspend the annual leave already started by the official if this is necessary for the performance of essential tasks relating to health or safety, for example.
Can I lose my annual leave if I fall ill?
If you fall ill before the start of your leave, your leave will be postponed at your request. Annual leave is not postponed automatically, but requires that once an employee gets sick, they request postponement of leave without delay and present a reliable explanation of their incapacity to work. If you fall ill during your annual leave, you are entitled to have your leave postponed to a later stage after a six-day waiting period. The 6 waiting days may not reduce the employee’s entitlement to a 4-week annual leave.
Can my employer cancel my annual leave due to coronavirus?
An employer must place the summer holiday (4 weeks) on the summer holiday period, i.e. 2 May–30 September. The winter holiday should be granted on the winter holiday period which starts on 1 October.
The employer must notify the employee of the timing of the holiday no later than one month before the start of the holiday. If this is not possible, notification of the timing of the holiday must be given at least two weeks before the start of the holiday. The notification of the timing of the holiday is binding on the employer. The employer is not entitled to unilaterally cancel or change the notified timing of the holiday. A change of timing can, of course, be agreed.
However, if an employer changes or cancels a notified holiday, the procedure violates the Annual Holiday Act and the employer is obliged to compensate the worker for the damage they have caused. However, the employee is obliged to obey the employer’s orders regarding a rescheduled or cancelled holiday if the holiday has not yet begun.
Traveling and working from home
Can my employer require me to work from home?
Working from home is based on agreement. An employer cannot order an employee to work from home unless the possibility of remote working is mentioned in the employment contract or otherwise agreed.
What should I consider when working from home?
The government recommended that everyone whose work allows it should work from home in order to prevent the spread of the virus. Working from home should always be agreed with the employer. The most important thing is to ensure that you have the necessary equipment for remote working and that the work environment is safe.
Other questions
Can the KOKO fund handle the processing of all the applications?
The Unemployment fund for highly educated KOKO has prepared in many ways for much higher numbers of applications. The processing status of applications is currently good, but the corona situation will result in a very steep increase in the number of applications within a couple of weeks. The KOKO fund will do everything in its power to ensure that the processing times will not be prolonged excessively. Read the KOKO fund’s notice on the subject.
How does coronavirus affect banking (Danske Bank customers)?
On Danske Bank’s website, you will find an info pack with answers to your questions as well as information on the support and flexibility options offered by the bank in this exceptional situation caused by coronavirus.
Keep also in mind that as a member of The Finnish Business School Graduates, you can always use the instalment-free periods granted for your housing loan in the way you want, just when you need flexibility in your finances. You can apply for 4–12-month instalment-free periods without a service fee. Read more on the website, which is being actively updated.
Can my employer require me to perform new duties, if for example some of the staff are ill?
Within the framework of the right to direct, the employer may assign new duties to an employee. However, the content of the unusual duties varies case by case and depends, among other things, on what has been specified in the employment contract, how much the duties deviate form normal and how much they would affect the workload.
The duration of the change is also relevant. In the case of a virus, the duration of the change would presumably be relatively short, which may broaden the right to direct.
However, it is important to ensure that the workload is not unreasonable and that the complexity of the duties is in line with the professional capacity of the employee and with the employment contract. In some cases, it may be appropriate to discuss a pay increase due to the additional duties and responsibilities. All employees must be treated equally even in these circumstances.
