As college students gear up to enter the workforce, many are not impressed by employee stock options in compensation packages. Health care in particular is far more important for students when thinking about what jobs they will accept after graduation.
A new survey of 2,000 undergraduates finds that more than half (56%) of students say a high-quality health plan is the best perk a company could offer to persuade them to take a slightly lower salary than they expected. Almost one-quarter (24%) say extra paid vacation time, while just 4% say stock options.
“Stock options are a gamble,” a Temple University student says. “I’d rather have a pension, health care, dental, paid vacation, a decent salary, and work-life balance.”
A Majority of Students Want a High-Quality Health Plan Over Stock Options
What’s the BEST perk or benefit, if any, a company could offer to persuade you to take a slightly lower salary than you expected?
A majority (58%) of students would prefer a $60,000 salary with no stock options over a $50,000 salary with stock options, compared to 42% who would prefer a $50,000 salary with stock options. Male students are split 50-50, while 63% of female students say they would take the higher salary.
Almost two-thirds (65%) of students say employee stock options do not make it worth taking a lower salary at a startup because there’s a risk your stock options will be worthless. But male students are twice as likely as female students to say it is worth the risk because it’s possible you’ll make more money from your options in the future (50% vs. 25%).
About one-third (32%) of students overall say they want options when they accept a job offer after graduation, but male students are almost twice as likely to say so (43% vs. 23%). Female students are more likely to say they do not care whether they have employee stock options or not (49%).
9 in 10 Female Students Are Not Confident in Their Knowledge of Stock Options
How confident are you in your knowledge of how employee stock options work?
Most students are not confident that they even understand employee equity. Almost one-third (30%) of students overall are at least somewhat confident in their knowledge of salary negotiations, while 19% are at least somewhat confident in their knowledge of employee stock options.
Female students are significantly less likely than male students to be confident in salary negotiations (20% vs. 44%) and stock options (9% vs. 33%).
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Methodology: This survey was designed and conducted by College Pulse. Interviews were conducted among a sample of 2,000 full-time and part-time students attending four-year colleges or universities in the U.S. who are part of College Pulse’s American College Student Panel.
