Do you think I am underpaid? PhD from Cambridge

[Ramphamosa]

I’m 29. I’ve got a PhD from Cambridge in a STEM subject. 1st class undergraduate from Oxford.

I work for one of the big four. I earn about £58k a year in London. I work 9am-8pm most days. Get very little bonus.

I know it sounds like a decent salary, but I honestly thought I’d earn a lot more than I do. Big 4 was my fall back choice.

PhD has nothing to do with it - I work in the arts and everyone on minimum wage has a PhD. I have a similar academic background and that's more than I've ever earned, but not that much more. Got to say, it would take more cash than that to make me do a Big 4 job. Civil Service would be better work life balance and more interesting, no?

If you work for a Big 4 your salary will reflect the role that you do, rather than your qualifications. I know someone who worked at Deloitte and their salary was not super competitive but they get away with not paying that well because people want it on their CV and ultimately they want to make Partner (where they will earn £1m+ a year. How have your reviews been? Are you getting good feedback? Is there any headroom in your band to get a pay rise? Are you likely to be promoted soon?

Well, that’s nonsense. I went to Oxbridge and work in a Big Four company. The simple fact is that the OP is earning what would be expected in one of those companies at this stage of their career. Plenty have pointed out that this part is an investment for the future as salary will rise with promotion. There is also the option of moving to do something different with higher pay now.

That seems super low for Big 4. What’s the position, how long have you been there, what’s the going rate for same position in other firms?

She’s on a starting salary at 29.

No just because you have a degree doesn't mean you are entitled to earn big money.

yes but that is the danger of doing all the degrees right after the other: it does put you behind at the beginning. Especially in a job / profession / company where your PhD adds nothing to your actual qualifications for the job.

The big 4 (didn't work at them but worked with enough auditors in my time) to know how it works. They want people who can demonstrate they are clever (so yes, a PhD will get your CV looked at and maybe an interview) but then they want people who they can train in their ways to do their things. And of course a lot of that covers legal stuff and mandatory knowledge, but they train you on that. Which is why it is a really tough job to start with, with a lot of hours and a lot of learning.

And then? the sky can be the limit.

When did you finish your degree? When did you finish your training/qualifications for your job at the big four?
You are 3 or 4 years behind your peers because of doing the PhD.
I don't know why you are expecting more than that.
It's all about how you progress from now on and nobody cares that you went to Oxford and have a PhD. Those qualifications say something about you and help to get you in the door but that's it.

And that’s what the company pays for what I’m assuming is around Senior Consultant or equivalent. A PhD is irrelevant. If the salary isn’t high enough, then she can go and work elsewhere - that’s fine. But it is what it is.

How many years on are you? Have you got your qualification yet? Are you on the audit path?

I knew someone who went into banking at 24 due to doing postgrad and he complained to his boss that he was being paid the same as the 21yo starters. He didn’t last long in banking.

Well I am impressed with a first and phd from Oxford. You must have worked extremely hard for those. ⭐️⭐️

Are you taking professional exams? One of my kids 27 works for a not quite big four and has passed their professional exams and earn around £60k and isn't in London. They don't work stupid hours at all. They did a stem degree. They work alongside a couple of younger colleagues who joined the company straight from school and were earning £60k at around 25 having completed all their exams.

My PhD, 1st degree in stem, kid is older and earns a lot less. They love their job though and knew that doing a phd isnt a free ride to a massive salary.

Why are you doing such crazy hours btw?

Does OP do more work/ bring in more value than someone with a Bsc from Kent or Nottingham though?

A STEM PhD doesn’t necessarily mean you do more billable hours.

If OP was working in the field of their PhD then maybe they could argue they were underpaid, but it’s accounting not rocket science. School leavers can do it. What counts is current performance.

I was making £52 then £70k pa in advertising at your age (switched jobs that year) that was a decade ago with a half decent undergraduate degree

so bluntly it’s fine but you prob aren’t pushing or maxing out your earning capability if money is one of your key goals.

if you want to follow the money I’d be looking at how you can move out into a different sector (client side, investment banking etc) to maximise income while achieving better work life balance.

Several years behind but still 4 years out from her PhD so should be on more than that by now.

If she did PhD later and has only just finished, she would know her salary was appropriate for her level.

What are you actually doing in the job, and how many years into it?

The academic qualification level is probably irrelevant to your job. If you want to make money in the city you’d have been better off doing your CFA or similar vs a PHD.

Big 4 salaries are also not much to write home about - you need to look at what else you can move into with the experience you have from there (which will look great on your CV).

I agree the PhD is irrelevant.

If you want more money, move somewhere they'll pay you more. You probably won't get the defined career progression and all that but maybe you just want to follow the money? Plenty of people do at your age. If you haven't worked there long make it to a year and then move.

I don't understand why you've done a PhD? It might sound nice on paper but also seems irrelevant to the job you've chosen. You'd have been better becoming chartered, surely?

An irrelevant qualification, no matter how "prestigious" won't earn you more money.

The Big 4 will pay you for the work you do and the level it is at. Your qualifications don't change that. Tbh, if accountancy was your goal, the PhD wasn't the best route, you could have gone in much sooner, then you would have progressed by now.

Anyway, if your goal is to earn more, you need to rise through the ranks of manager, senior, manager, director (decent pay) and potentially partner if you are good - as you well know the partner income is excellent so focus your energies on what you need to do to reach that stage.

I’m guessing undergraduate, masters, phd…you’ve not been in the workforce long enough to get paid more

You don't say what you actually do? Or how long you have been doing it for?

Your qualifications are irrelevant at this point tbh, nobody really cares. Are you paid the same as what other people are paid in similar roles and with similar levels of experience?

If you think you're paid less than you should be, ask for a raise or look for another job.

Where you got your degree from and in what is irrelevant if it is not core to what you need for the job.

What do you do, you say big 4, that's accountancy firms? so not STEM and the PhD won't matter either, experience and accountancy qualifications would be more prized I would think?

This!

Having said that, it seems low to me. I thought graduate (one measly degree!) offers were 60-80k in consultancy in London.

I think there are some misconceptions about salary levels out there.

Big Four also covers consultancy, with no professional exams required.

Lots more info required.

Is your job relevant to your qualification? Did you need it to get the job?
How long have you been in the job?
Are you studying for further qualifications now?

If, for example, you'd been there 2 years and are currently studying ICAEW, then I'd say that was an excellent salary.

If, however, you've been there 5 years and are fully qualified in a relevant field to your PHD, then it does seem low.

For perspective, I didn't earn £60k as a qualified accountant until I became an Audit Manager in outer London. I know salaries have progressed since then as my equivalent now is earning £75k but has about 15 years experience. This is a small to medium sized firm though, so very different to the top 4.