Younger workers more willing to share how much they make

It used to be that talking about money and salary was considered taboo. Millennials and younger workers, however, seem to have different attitudes about the subject. There’s also a cultural shift of providing salary transparency by openly communicating salary information with employees and job candidates.

A survey from ZipJob shows that 65% people surveyed would like to or have asked colleagues about how much they earn to see how their own salary ranks.

“In this post-pandemic world, there’s a cultural shift toward more vulnerability and openness in various aspects of life, especially in the workplace,” says ZipJob career expert, Amanda Augustine. “Millennials and younger generations, in particular, often prioritize transparency and value workplaces that are forthcoming about policies, practices, and compensation.”

Given their high level of comfort regarding openness about their earnings, it’s not surprising that when asked, “Would you be offended if a colleague asked you about your salary?”, less than one-third (28%) claimed they would be insulted if asked about their salary, perhaps reflecting the normalization of salary transparency.

But what are the pros and cons of such openness?

Pros of discussing salary with coworkers

• Transparency & fairness: Salary discussions can promote transparency and fairness within the workplace. If you and your colleagues discover wage gaps, you have the unique opportunity to work together to address them. When everyone is aware of each other’s compensation, the group may be more effective in negotiating collectively for better pay and benefits.
• Negotiation insights: Sharing salary information can provide insights into negotiation strategies. You and your colleagues can learn from each other’s experiences, helping everyone negotiate better compensation packages in the future.

• Empowerment: Discussing salaries with your colleagues can be empowering, as it can help you understand your current market value. This knowledge can be crucial during your next performance review or when you’re exploring new job opportunities.

Cons of discussing salary with coworkers

• Workplace discomfort: Salary discussions amongst colleagues may create an uncomfortable atmosphere at work, especially if you discover that one colleague earns more than their peers. This revelation can lead to jealousy, tension, and strained relationships within your department, which may harm your ability to work together and collaborate effectively.
• Potential for misunderstanding: Salary information might be inaccurate or incomplete. Without the full context of each of your colleague’s responsibilities, experience, and performance, comparisons amongst your team can lead to misunderstandings.
• Company policies: Some companies have policies against discussing salaries, and violating these policies could lead to disciplinary action. It’s important to be aware of your company’s view on this matter.

Related: Raises are getting smaller, and fewer employees are receiving them

“It’s important to consider the culture of your workplace, your company’s policies, and your personal comfort level with sharing such information, before you decide to discuss salary with a co-worker,” says Augustine. “When in doubt, consider speaking with someone in HR or seeking guidance from your manager.”