In fact, it's never too soon for students to research their earning potential, understand their debt load and think about the lifestyle they want after graduation, advised William Pate and Jessica Kohout, PhD, of APA's Research Office. Their office is the only agency that collects salary and debt data specific to psychology, although several other organizations also gather salary data.
Navigating the numbers
Just as research studies have their limitations, so do salary surveys, noted Pate.
When examining salary data, he advised, ask:
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Who was surveyed? APA's salary data include PhDs and PsyDs, but many other surveys only include PhDs. Also, some surveys lump bachelor's, master's and doctoral recipients into the same figures--and in psychology, these degree recipients have significantly different earning potential.
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How is salary defined? Are benefits, such as health care and tuition assistance, included? For academic positions, are the salaries for nine or 12 months? For practitioners, does the salary take into account taxes and business expenses?
"Look at the technical index or technical appendices of these reports and sources of data to see how they're defining things so that you're sure the information you're getting is applicable to you," advised Kohout.
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Are the data broken down by experience? Some surveys only provide an average of participants. But the salary you can expect as an early-career psychologist is probably less than that. Look for data specific to recent graduates.
Moreover, noted Pate, other considerations can affect salary offers, including geographical area (to calculate cost of living differences, try the Council for Community and Economic Research's tools at www.coli.org) and the kind of setting. For example, community mental health centers usually pay less than for-profit businesses.
Plus, job candidates can bargain for more than salary, he noted: Consider the value of leave, flexible scheduling, health-care plans, continuing-education funding, tuition assistance, dependent care and other benefits. (For more on job negotiations, see www.gradpsych.apags.org/jan05/worth.html.)
Solving the equation
Once you have an idea of your earning potential, factor in your debt load, including student loans: Will your salary allow you to pay down your debt?
Two-thirds of 2003 doctoral-level psychology graduates carry debt, according to APA's Research Office. In fact, 24 percent have graduate loans of more than $75,000. Students in health-service provider subfields are more likely to have debt than those in research tracks, he noted. (For more on student debt, see www.gradpsych.apags.org/apr04.)
If the numbers look tighter than what you've set as your personal goal, map out a plan to boost your income. One way to do that, said Pate: Diversify your skill set. For example, private practitioners can supplement their incomes by consulting, giving workshops and conducting forensic evaluations--but only if they have the right training and understand how to market their skills.
Now is the time, he noted, to tap the training necessary to develop a varied--and financially successful--professional life. The benefits are two-fold, Pate added: Income from multiple sources puts you on solid financial footing if business slows in one area, and the varied work can help prevent professional burnout.
In fact, in 2004, at least 50 percent of full-time clinical psychologists worked in two or more settings.