Hiring new graduates once followed a predictable pattern: entry-level roles, competitive pay, and a few attractive perks. But those days are behind us. Gen Z is rewriting the rules. Their expectations regarding compensation, flexibility, culture, and communication are reshaping how employers attract, hire, and retain career talent.
Instead of simply guessing, use real-world data to create job postings and employee perks that appeal to the up-and-coming generation.
Let’s kick this off by first defining Gen Z. The Gen Z generation are those born between 1997 and 2012. They are a very tech savvy bunch who value boundaries, mental health, and authenticity. To help employers understand what’s changing, the 2025 US New Graduate and Generation Z Compensation Survey provides a detailed look at new grad salary benchmarks, perks that resonate, workforce trends, pay transparency practices, and campus pipeline activity. With inputs from more than 100 organizations across the country, it serves as one of the clearest snapshots available of what matters to today’s emerging talent.
The state of Gen Z hiring in the US
Many employers are continuing to hire early-career talent, though at a steadier pace than in prior years. According to the survey, 13.7% of organizations hired more new graduates in the last 12 months, while 12% reported a decrease in hiring. The number of organizations that reported no change in their hiring was 60.7%. Early-career talent remains central to long-term workforce planning. What’s different today is what young candidates expect, and what they notice when those expectations fall short.
What the 2025 Gen Z salary survey reveals
Before employers can meet Gen Z where they are, they need a clear view of what today’s new grads are earning. The latest Gen Z salary survey breaks down starting pay by degree and discipline, offering a practical look at what it means to get compensation right in 2025 and beyond.
New grad salary benchmarks by degree
The US Gen Z salary survey shows that starting salaries for new graduates continue to vary widely by discipline and degree level. Engineering roles remain the highest-paid, but business, computer science, and IT graduates are also seeing steady compensation levels.
Updated findings include:
- Bachelor of Arts: Average $67,134; median $65,000
- Bachelor of Science: Average $72,595; median $70,750
- Bachelor of Engineering: Average $79,946; median $77,500
These figures reinforce a significant trend: the typical Gen Z starting salary continues to climb most sharply in technical and analytical fields. At the same time, the spread between median and average salaries across degree levels is narrowing, suggesting employers are tightening ranges to stay both competitive and internally consistent.
Geographic and industry differences
While the survey focuses on nationwide data rather than state-by-state trends, there are several sectors (technology, engineering, and finance) that report offering the highest new grad salary levels. This mirrors broader national hiring patterns, where skill shortages remain concentrated in STEM-driven roles.
Organizations that operate across multiple states will want to balance national salary expectations with regional cost-of-living factors. For Gen Z, inconsistent or unclear compensation practices can be enough to prompt them to consider competitors.
Bonuses still play a significant role
Salary is only part of the compensation story. Bonuses continue to be widely used to attract and retain new graduates:
- The proportion of organizations that include new graduates in their annual bonus programs was 71.6%.
- Meanwhile, 73.3% pay bonuses to more than 75% of new graduates, signaling equitable participation across the workforce.
- A majority (57.5%) offer a bonus of 6% to 10%.
Sign-on bonuses are also more common than some assume. A total of 45.6% of organizations offered sign-on bonuses to new graduates, which is an effective way to win competitive offers or attract hard-to-find skills. For employers unable to raise base salaries, bonuses remain a practical option.
Workplace perks Gen Z actually values
The survey breaks perks into several categories, helping employers understand not just what Gen Z wants, but why.
- Culture: Gen Z places a great emphasis on compensation/competitive pay, challenging and rewarding work, recognition programs, and career development programs.
- Comfort: Perks that enhance the day-to-day work experience include break area activities, fitness benefits, ergonomic workspace options, and free food. For many Gen Z workers, these are not “nice to have” add-ons, but signals of an employer’s commitment to well-being.
- Personal: One defining expectation for this generation is flexibility. Hybrid work schedules remain the preferred model, with rigid in-office policies being a significant deterrent. They also appreciate a relaxed dress code, as well as tolerance of facial hair, tattoos, and piercings. Offering leave programs, such as maternity and paternity leave, is also key.
- Social: Gen Z values connection at work. Social perks highlighted in the survey include organized community service efforts, paid leave for volunteering, philanthropic giving programs, and participation in corporate challenges.
- Amenities: Some popular amenities include on-site fitness centers, pet insurance, local business discounts, and travel discounts. These perks offset living expenses, a significant concern for young career professionals navigating rising housing and transportation costs.
Pay transparency is still catching up
Gen Z values pay transparency. They expect clear salary ranges, open communication, and alignment between internal and external pay practices.
Yet, transparency remains inconsistent across US employers. According to the survey:
- A total of 47.3% of organizations provide pay transparency to new graduate hires.
- On the other hand, 52.7% of organizations do not.
With more states adopting pay transparency legislation, this area remains both a compliance requirement and a competitive differentiator. Employers who proactively adopt clear salary practices can quickly build trust with Gen Z candidates.
Internships and co-ops: the pipeline still matters
Internships and co-ops remain essential for building career pipelines:
- The percentage of organizations that hire interns was 88%, meanwhile 20.8% hire co-op students.
- A large proportion of organizations (78.8%) send recruiters to college and university campuses to recruit new graduate hires, interns, and co-op students.
These programs not only help students develop real-world skills but also give employers opportunities to shape talent early. With competition for emerging talent tightening, early engagement through campus programs remains a powerful strategy.
What this means for employers
Across the data, one message is clear: Gen Z wants an employment experience that’s fair, flexible, transparent, and growth-focused.
Organizations that succeed with this generation align around:
- Competitive and consistent new grad salary benchmarks
- Clear communication and pay transparency
- A flexible, modern approach to hybrid work
- Perks that support well-being and daily needs
- Authentic career development pathways
- Strong internship and co-op programs
Employers who continue to rely on outdated expectations risk losing candidates before their hiring process even begins.
Use data as your competitive advantage
The US job market is shifting, and so is the next generation of talent. The 2025 US New Graduate and Generation Z Compensation Survey provides employers with the data they need to stay relevant, not just in compensation, but also in culture, communication, and strategy.
Explore the latest survey results to learn more about what the incoming workforce wants.
About the author
Rebecca Hall, Principal
Rebecca spent much of her career working in compensation in various corporate roles then transitioning to consulting with Mercer. Her current role, as the Content Leader for imercer.com, allows her to leverage her knowledge of human resources and talent strategy to create materials supporting Mercer’s Products & Services in North America.