Should a fresh Polytechnic Graduate get a Private Degree or Wash Dishes for a living?

Once again, I can't express how disappointed I am at Millenial advice columns and HR career experts who miss out on this latest issue that once again I will have to blog about this.

Suppose you are a fresh graduate from a Polytechnic and contemplating a private university degree. 

A quick survey on the latest private degree salaries would expect a salary of $2,900 based on April 2021 data (link). The private degree is not cheap because it lacks subsidies and will cost you a couple of years of your life.

Now, if you look at the current trends in the industry right now, dishwashers can earn about $4,000 a month. (link) 

The gap of  $1,100 is not trivial, suppose you become a dishwasher for three years and save the $1,100 difference compounded at 6% p.a., you will have an additional $42,000 compared to your peer who would have just graduated from the private university and accumulated around $56,000 in student loans (I used JCU Business Degree costs in my model).

If you can save more than $1,100 a month, the decision to become a dishwasher instead of attending a private degree can come up to over $100,000 if you factor in additional earnings and the fees you would pay!

Of course, there might be some concerns about dishwashing work in Singapore. 

The first concern is whether the dishwashing work at $4,000 is sustainable. That will be a valid concern if we take on more foreign workers to do this work, salaries will dip again. But I think it's high time the government start to rethink its labour policies to allow foreign workers only in tandem with more local hiring. Also, nothing stops the poly grad from attending a private degree after the gig is no longer available.

The second concern is that an office worker may have a career ladder but the dishwasher doesn't. To be realistic, we may need more data on salary increments of private degree holders, but suppose we go with an annual 5% increment of a $2,900 salary, it would take more than 6 years for the office worker to reach the level of the dishwasher. That's assuming the dishwasher does not invest his savings. Adding the length of the degree we could be looking at a 9-year salary advantage! 

The third question is that dishwasher work is backbreakingly hard and may attract social stigma. This, I agree. But a $4,000 salary is the right step to change our attitude toward blue-collar workers and these salaries may also push business owners towards better automation which may result in easier work.

The issue of Private Education Institutions has always attracted a lot of controversies and I seem to be the only blogger happy to talk about this. So much so that folks actually goad me into commenting whenever a salary survey comes up.

There are of course the politically correct words spoken by folks who run these institutions who keep accusing the industry of discrimination, but no rational business owner can ignore the cost savings they can get when they hire a PEI student as compared to hiring a local grad. The situation may even be the opposite - some policymakers have in their books subtly hinted that the salary uplift of a PEI grad compared to a polytechnic graduate worth about $500 pm may not be justified.

There is a lot of food for thought, but I will end with a thought experiment. 

Suppose a diploma programme director was to be able to convince his entire cohort to take up dishwashing roles, the salary survey for the following year will show results that even exceed some local degree programs! 

That is at least a powerful story in the hands of a local journalist.