Association questions findings of employment survey for private school grads

SINGAPORE — The Singapore Association for Private Education (SAPE) has taken issue with the findings of a recent national survey which, among other things, suggested that the starting salaries of graduates from private education institutions (PEIs) were not much higher than those commanded by diploma holders.

In a statement issued on Wednesday (Nov 29), SAPE president Leon Choong also said there was “good evidence” that people who upgrade their academic qualifications through PEIs may enjoy an “immediate 17 per cent increment” on their salaries and a “far higher return on investment than any financial institution is likely to give today”.

However, Mr Choong’s claim was challenged by the Committee for Private Education (CPE), which had conducted the inaugural PEI graduate employment survey with SkillsFuture SG.

CPE director-general (private education) Brandon Lee said: “The ROI figure cited by (Mr Choong) should be interpreted with caution, especially when the age of fresh PEI degree graduates is generally higher than the median age of a fresh polytechnic graduate, and closer to that of a post-National Service polytechnic graduate.”

The graduate employment survey for PEIs was among the measures introduced in October last year to better protect prospective students by making information more transparent.

Findings of the PEI graduate employment survey were published on Nov 15. Among other things, the survey found that six in 10 PEI graduates found full-time jobs within six months after graduating, drawing an average starting monthly pay of S$2,550.

The proportion was lower than statistics from the autonomous universities, including the National University of Singapore, Nanyang Technological University, Singapore Management University, Singapore University of Technology and Design, and Singapore Institute of Technology.

Based on the latest employment surveys from these universities, 80 per cent of their graduates found jobs within six months after getting their degrees, with the average monthly starting pay pegged at S$3,325.

The CPE had also noted earlier that polytechnic graduates earned about S$2,517 per month, but Mr Chong pointed out that this was the median gross monthly salary drawn in full-time jobs by polytechnic graduates who had finished serving national service (NS). “However, this isn’t comparing like-for-like,” he said.

Adding that those diploma holders had graduated in 2013, Mr Choong said: “If the CPE study surveyed the salaries of PEI degree graduates from almost four years ago, what would our results be today?” He argued that a better comparison would be the figure of S$2,180 earned by fresh poly grads this year, based on statistics from the polytechnics.

In response, the CPE pointed out that the post-NS diploma holders, whose age is closer to that of fresh PEI graduates, had completed two years of NS before starting full-time work. The S$2,517 figure was derived from these poly graduates who completed full-time NS between Apr 1, 2015 and Mar 31, 2016. This timeframe was similar to the PEI graduate employment survey.

Speaking to TODAY, Mr Choong also questioned the design of the survey, arguing that there is a “quantitative bias” in the assumption that people who enrol in the autonomous universities are similar to those who pursue courses in PEIs.

“The research cannot rule out so many other variables for the resulting salary and job numbers. For example, who’s to say it’s not their age, or their gender, or their socioeconomic status (which affect their salaries and job prospects)?” he said.

Mr Lee said the CPE will “continue to develop and publish relevant information and data on PEI graduate outcomes to enable prospective students to make better informed decisions”.

He reiterated the importance for CPE to “collect and publish objective data on the employment outcomes of fresh PEI graduates using the methodology used in the graduate employment survey for the Institutes of Higher Learning”.

Said Mr Lee: “In considering whether to pursue a degree through a PEI, it is important to consider several important factors, including the opportunity cost of pursuing it.”

He added: “Specifically, individuals should take into account the course fee payable, the salary they could have earned had they chosen to work instead of pursuing a degree at a PEI, whether the degree will inculcate skills that are valued by the industry as well as if the qualification will be recognised by prospective employers.”