Gen Z Leads the Shift Toward Salary Transparency in the Workplace

A recent study by Robert Half revealed that over 80% of Gen Z employees have discussed their salaries with colleagues, compared to 41% of Generation X and 31% of Baby Boomers, signaling a significant cultural shift in the workplace toward greater financial transparency.

Nancy Romanishin, CEO of Syndio, believes that discussing salaries is no longer taboo but has become a way to build trust between employees and management. Romanishin, who publicly disclosed her entire salary history at an HR conference in 2022, said:

"It was extremely uncomfortable, but the goal was to show attendees that breaking the silence around money would be essential in the future of work."

She added that younger employees in today’s job market are bolder in discussing pay, unlike previous generations that were more reserved, considering this openness a positive step toward workplace fairness.

Does Salary Disclosure Create Gaps?

Although laws in countries like the U.S. and Canada protect employees’ rights to talk about their salaries, some companies still worry that this practice might expose unfair pay disparities.

Jessica Bello, Global Head of Rewards at Deel, argues that hiding numbers is not the solution. She says:

"Let’s be realistic—employees talk about salaries whether the company encourages it or not. They compare, research online, and even ask ChatGPT. Pay transparency doesn’t create gaps; it reveals them."

Bello emphasizes that leaders should establish clear salary frameworks and explain the reasons for existing differences, whether due to varying experience levels or budget policies across departments.

Romanishin also stresses the importance of honest communication with employees. When questions arise about pay disparities, HR should provide logical and fair explanations. She encourages companies to hold open meetings and internal dialogues to explain salary policies and principles, fostering mutual trust and reducing misunderstandings.