Pay Transparency: Your Younger Workers Aren't Shy About Sharing How Much They Make

When it comes to the two youngest generations in the workforce, there seems to be no such thing as too much information when it comes to discussing how much they make – and they have a reason for breaking the old taboo against doing so.

According to LinkedIn’s latest Workforce Confidence Survey, 81 percent of Generation Z workers and 75 percent of Millennial workers believe that sharing pay information is a step toward achieving pay equality.

Compare that to 47 percent of Generation X workers and just 28 percent of Baby Boomers (where 42 percent of those surveyed actively disagree that sharing information can help achieve pay equity), and the difference is stark. As Boomers retire and younger Gen Z workers make up an increasing share of the workforce, expect that trend to continue.

And yes, workers of any generation are allowed to discuss their pay with others. In fact, it’s a violation of federal law to prohibit or even discourage such discussions among employees, even in non-unionized companies, although you don’t have to allow them to take place during working hours.

Federal employment law allows workers to discuss salaries and wages with others for several reasons, among them the purpose of addressing pay inequity. (Workers can’t access private company documents to gain pay information, however, and there are restrictions on human resources personnel who have access to those private documents.)

Also, bragging about a big raise or high salary just to impress others isn’t protected discussion of pay. To be protected under the National Labor Relations Act, any discussion of pay must be done with the aim of advancing the interests and goals of a group.

For more on proven ways to retain your workforce, check out Inspiring Loyalty, The Secrets of Employee Retention

So, when annual evaluations and wage or salary discussions come around, assume three things going in:

1. Your Millennial and Gen Z staffers know what their colleagues in those generations are making -- and might know what older colleagues are making as well. They will come in well-armed with information.
2. These staffers also know what their Gen Z and Millennial friends, acquaintances and business connections are making in similar positions at other companies. So even if you’ve achieved internal pay transparency and equity, they’ll know whether or not you’re paying the market rate.
3. Any concerns raised about pay inequity are real and deeply felt. The Deloitte Global 2022 Gen Z & Millennial Survey found that almost half of Gen Zs reported feeling stressed most or all of the time. The survey also found that 36 percent of Millennials and 29 percent of Gen Zs were most concerned about cost of living.

One assumption you shouldn’t make is that workers on the “winning” end of pay inequity are happy about that. Generation Z prizes employers who care about employees’ well-being and display ethical leadership, and pay transparency plays into both of those areas.

In the end, pay transparency and equity – both within the business and in the larger market – benefit everyone. Workers of all generations know they’re being treated fairly when a company is transparent and equitable, and a company that displays those traits is more likely to retain committed workers as the shuffle of the Great Resignation goes on.

Ready to learn more? Check out some of SkillPath's live virtual training programs, on-demand video training or get it all with our unlimited eLearning platform.