05-17-2022
According to a recent survey by Bankrate.com, nearly 42 percent of workers in Generation Z (currently aged 18-25) have shared their salary information with their co-workers or members of their professional community. Similarly, about 40% of surveyed millennials (26-41 years old) also shared that information. These disclosures contrast with employees from older generations who are much less likely to share. Just 31% of Gen Xers (42-57 years old) and 19% of baby boomers (ages 58-76) surveyed have shared their salary information.
Against the backdrop of high inflation and racial and gender pay gaps, more than half of the millennials interviewed and 45% of the Gen Zers consider themselves underpaid. One Gen Zer told Bankrate.com she shared her salary information with at least 30 individuals. She said she did not want to wait two years to find out that she was making less than her co-workers. From sharing salary information, she learned her company was compensating her fairly but not her co-worker.
Gen Z seemingly perceives their bargaining power as strong, with 79% of individuals interviewed planning to look for a new job in the next year; Millennials were not far behind at 61%. These two groups are more likely to ask for raises and additional flexibility. With the low unemployment rates, these younger employees believe they can leave and find work more to their liking. According to an economist from the Indeed Hiring Lab, salary transparency among employees discourages disparity problems related to the gender wage gap and racial wage issues. The earlier these younger employees catch wage differences, the sooner they can ask for increases that will minimize any gaps as they move through their careers.