Why do some companies pay fresh graduates huge salaries?

[niche]

Usually the contribution of an employee to a company depends to a large extent on the experience, skills, work ethic of the employee so usually new employees with no work experience cannot contribute much to the company. Instead the company has to invest a large amount in training the fresher employee so that he or she is productive. Yet some companies in India are paying a huge amount of money to fresh graduates, one person posted online that he is getting a monthly salary of approximately $5000. In contrast older experienced engineers and professionals find it very difficult to get work, one person posted that it was difficult for a person with 30 years experience was finding it difficult to get paid even $190 a month for working the same hours. Why do companies not value experience , skills, why are they paying huge salaries to fresh graduates with no skills, no work experience while older citizens do not get any paid work at all or make very less money despite working long hours? In your country also do fresh graduates get huge salaries while experienced older citizens who have similar qualifications make very less money despite working long hours daily?

 

[Augusta]

Well, you might not be too correct to believe that the fresh graduates never had other skills apart from his or her certificate as a graduate. Being a fresh graduate doesn't mean that the graduate was idle even during the school holidays.

I have a cousin that studied engineering during the holidays he spent most of his time acquiring skills in engineering from informal places. You know most times schools will be more about the theory aspect but he knew that he will be well rounded if he can attend other informal lectures to acquire knowledge.

He even used to follow the people in these informal training to do outside jobs so apart from getting the training which is the skills he also has experience in it. The only limitations was his school that didn't allow him to work full time. So you see that fresh graduate might still have the experience and skills needed for the Job and that is why they are employed.

 

[niche]

The fundamental problem is that older citizens, especially engineers who have the same or far better skills, work ethic, compared to young people are making almost no money in India, they do not get any paid work, however hard they try. In contrast the young people who have no professional experience are being paid huge salaries, though the company will have to spend time training them. I have handled some fresh graduates when I had a job and I know that they require training.