Gen Z’s Hot Take: Salary Secrecy is Dead

For decades, discussing your salary at work was considered taboo. We were taught to keep pay a well-guarded secret. Companies often discouraged employees from comparing salaries, and as a result, many workers had little insight into whether they were paid fairly. Professionals are challenging this “don’t ask, don’t tell” expectation. After all, what’s there to hide? How pay is determined and whether employees are receiving equitable compensation are the conversations of today, whether employers are prepared for it or not.

Generational Shifts Driving Transparency

Generational differences have played a huge role in pay transparency. Gen Z and Millennials are spearheading the movement, while Baby Boomers and Gen X are gradually adapting to this change. Surveys reveal striking contrasts in attitudes between younger and older workers.

• Gen Z: The vast majority of Gen Z workers are comfortable talking about salary. In one survey, 83% of Gen Z respondents said they’re willing to share their pay with others (USA Today). Gen Z employees see transparency as a way to ensure fairness and are often open about their salaries with colleagues and even on social platforms.

• Millennials: Around 60% of Millennials are willing to disclose their pay (USA Today). Millennials, who now make up the largest share of the workforce, have been pushing for transparency as well. Many remember entering the job market during economic turbulence and are keenly aware of pay disparities, which drives them to discuss and demand fair pay.

• Gen X: This generation is more hesitant, with roughly 42% open to sharing salary info (USA Today). Gen Xers grew up with many old norms and may feel uneasy breaking them. However, as they see transparency becoming standard (and as parents of Gen Z themselves), many are coming around to the benefits of openness.

• Baby Boomers: Only about one-third of Boomers feel comfortable disclosing their salary (USA Today). They largely came of age in an era when discussing pay was strictly off-limits, so it’s a significant adjustment.

These differences highlight why the push for transparency is primarily a youth-driven movement. Gen Z employees often openly discuss pay in order to spot inequities and support each other. Millennials have also been vocal about issues like the gender pay gap and demand for equal pay for equal work. In contrast, Boomers and Gen X tend to value privacy, but many are beginning to see the upside of transparency. Those in senior positions are recognizing the change: 52% of managers (often Gen X/Boomers) acknowledge that pay transparency plays a role in attracting and retaining talent​, even if nearly half of them still feel uncomfortable sharing their own pay details (USA Today).

The Retention Strategy

When employees feel valued and well-informed, they naturally invest more in the company’s success and stay. According to a recent compensation analysis, improvements in pay transparency policies were associated with about a 30% decrease in employees looking for a new job on average (Payscale). Breaking it down further, clearer pay practices led to a 32% drop in turnover intent for Millennials and a 28% drop for Gen X, compared to a 21% drop for Baby Boomers (Payscale). In other words, when pay practices are transparent, Millennials and Gen X employees are much less likely to seek a job elsewhere, and even Boomers feel more inclined to stay put. A quick note. Gen Z, being early in their careers, are an interesting case because transparency alone isn’t always enough to retain them, as they tend to job-hop for growth and may need additional assurances of fair pay.

Adapt to Attract the Right Talent

Applicants often won’t even consider job opportunities that conceal pay information – lack of transparency is a red flag. Likewise, overly broad salary ranges, which some companies use to feign transparency, can be equally off-putting.

Organizations that continue to cling to secrecy may develop a reputation as outdated or untrustworthy, making it harder to recruit top candidates. On the other hand, embracing transparency can be a powerful differentiator. Being open about pay ranges and how salaries are determined positions a company as an employer of choice.

How can employers adapt?

First, start with job postings: include clear salary ranges and relevant benefits. This not only complies with emerging laws but also builds goodwill with candidates who appreciate the upfront honesty. Furthermore, being upfront about pay can streamline hiring by aligning candidates’ salary expectations from the start, avoiding mismatches late in the process. In short, pay transparency is becoming a baseline expectation.

Next, companies should establish a fair compensation structure internally – for example, using market data to set ranges for each role and level. Communicate to employees how raises and bonuses are decided. When people understand the reasons behind their pay, it paves the way for an objective narrative about compensation and cultivates a culture where transparency is woven into the fabric of compensation philosophy.  

Adapting in this way pays off. Transparent employers tend to see higher employee retention and engagement, because their team members trust them. Trust can also improve productivity, because professionals are more likely to focus on their work versus fixate on hidden inequities.

Embrace the Change.

The bottom line is by committing to transparency and objective reasoning behind pay decisions, companies can create a more equitable environment that resonates with today’s employees. In an era defined by information sharing, being transparent about pay isn’t just about meeting regulations or following trends – it’s about achieving better outcomes for your people and company. And that, ultimately, is the key to attracting top talent, improving employee retention, and building a loyal, motivated workforce for the future.