According to Inc, new global data from Kickresume reveals only 31% of workers say salaries are openly discussed at their jobs, while 37% report their employers actually ban salary discussions entirely. The generational divide is striking – nearly 40% of Gen-Z respondents discuss salaries openly at work compared to just 30% of Millennials and 22% of Gen-X workers. Even more telling, 18% of Gen-Z workers say they’ll talk about pay even if their employer explicitly forbids it. Regional differences show Europe leading at 34% salary transparency compared to 27% in the US and 24% in Asia. The EU is pushing this trend further by requiring member states to implement the Pay Transparency Directive by June 2026.
The generational divide
Here’s the thing – we’re not just talking about slightly different attitudes here. We’re looking at a fundamental generational shift in how people view compensation. Gen-Z is nearly twice as likely as Gen-X to openly discuss salaries. And they’re not just talking – they’re voting with their applications too. A separate survey from EduBirdie found that 58% of Gen-Z would avoid applying to jobs that don’t disclose salaries upfront. That’s huge. Basically, companies that maintain salary secrecy might find themselves missing out on the next generation of talent entirely.
Why transparency matters
So why does this matter beyond just making HR departments uncomfortable? Research consistently shows that pay transparency actually improves performance. In one notable study, workers who were kept in the dark about compensation levels performed worse than those who knew what their colleagues were making. And let’s be real – when you’re transparent about pay, you’re forced to actually have fair compensation practices. No more paying women less than men for the same work. No more arbitrary differences between people with similar skills and experience. The EU’s push for transparency isn’t just about fairness – it’s about creating more productive workplaces.
The company size factor
Now here’s an interesting wrinkle – company size matters. LinkedIn found that workers at smaller businesses were less likely to feel salary discussions were discouraged. That makes sense, right? In a smaller company, everyone knows everyone. There’s more camaraderie, more familiarity. But in larger enterprises? Management gets nervous. They worry about employees discovering pay disparities that might not have clear justification. Never mind that the National Labor Relations Act actually protects workers’ rights to discuss compensation. Many companies still act like salary information is some kind of state secret.
What companies should do
Look, the writing is on the wall. Pay transparency is coming whether companies like it or not. Between generational shifts and regulatory pressure, the days of secret salaries are numbered. Smart companies will get ahead of this trend. Yes, there might be some difficult conversations initially when disparities come to light. But in the long run, transparency builds trust. It shows employees you have nothing to hide. And in manufacturing and industrial settings where clear communication is crucial for safety and efficiency, having transparent systems – whether for pay or operational data – just makes sense. Companies that embrace this shift will be better positioned to attract and retain the talent they need to compete.
