Who knows your annual salary (other than your boss)? Here are the financial upsides (and a few downsides) of pay transparency

In the U.S., one in three workers “simply don’t want to discuss salary at all,” according to the survey (1).

But these headline numbers don’t tell the whole story. There’s a generational gap in who’s talking about salary and who wishes they could talk about it more.

The generation gap

The Kickresume survey found that 39% of Gen Z respondents have discussed salary with coworkers, while only 18% say they don’t want to. At the other end of the scale, only 22% of Gen X say they’ve discussed salary at work and 33% say they don’t want to. Millennials fall somewhere in between (for both categories) (1).

These numbers could portend a coming change to attitudes around discussing salary as Gen X starts retiring and Gen Z gains greater influence in the workplace. Nearly half (49%) of Gen Z respondents support full transparency, while 41% of Gen X do (1).

Not surprisingly, Gen Z is taking some of their inspiration from social media influencers such as Hannah Williams, whose Salary Transparent Street has 1 million followers on Instagram and 1.5 million on TikTok (2,3).

Williams stops people on the street to ask them how much they make, with the results forming a video database of salaries for countless jobs.

Salary Transparent Street is just one source of salary information. Nowadays, there are a number of resources available, including Glassdoor and Payscale, which can arm you with the information you need to negotiate your salary with confidence.

This transparency movement is increasingly supported by legislation. So far, 16 states now require salary disclosure in job postings (with Delaware coming on board in 2027) (4).

Pros and cons of transparency

But is salary transparency a good thing? The evidence is mixed. For example, more than half of respondents in the Kickresume survey discovered a coworker was earning more for the same role, “and most were upset” (1).

A study published in the American Economic Journal found that, while a pay transparency mandate in the United Kingdom reduced the gender pay gap by about 20%, “the reduction came entirely from a 3 percent slowdown in men’s pay growth” (5).

Another study, published by the National Bureau of Economic Analysis, found that in countries where horizontal transparency — between workers of similar seniority — was mandated, these policies narrowed co-worker wage gaps. But, they have also led to “counterproductive peer comparisons and caused employers to bargain more aggressively, lowering average wages” (6).

The same study showed more encouraging results for vertical transparency (pay differences between different levels of seniority). “Empirical evidence suggests these policies can lead to more accurate and more optimistic beliefs about earnings potential, increasing employee motivation and productivity” (6).

It also showed that transparency between firms can be beneficial, sharpening wage competition between employers.

Salary transparency can take many forms, “from putting good-faith pay ranges in job postings to providing detailed explanations of how salaries are determined,” according to Robert Half, a talent solutions firm (7). “Companies that embrace it are likely to see a solid return on investment, including increased employee trust, reduced pay gaps and, as a result, a more engaged workforce.”

Bringing transparency to the dinner table

This openness is also spreading to other areas of finance — namely, the dinner table. “Gen Z (42%) and millennials (37%) are twice as likely to talk about money and finances at the dinner table than Gen X (23%) and baby boomers (21%),” according to a UK survey by The Investment Association (8).

The study also found that younger generations aren’t as confident in managing their finances, so discussing these matters in a safe space with family could be beneficial — from ‘death dinner’ conversations about estate planning to discussions about saving and spending strategies.

“It’s important for parents to talk to their adult children about money so that it gives them the knowledge to make better financial decisions,” Craig Kirsner, president of Kirsner Wealth Management, told U.S. News & World Report (9).

To make these conversations easier, consider setting up regular family meetings and even bringing in a neutral third party such as a financial advisor or coach, Nick Foulks, advisor and director of communications strategy and client engagement at Great Waters Financial, told U.S. News & World Report (9).