Millennials and Gen Z now make up the majority of the U.S. workforce, spanning ages 15 to 42. These generations are reshaping workplace expectations. The topic of fair pay and pay transparency permeates through the online posts of those searching for new job, or considering leaving their current roles. Frankly, it’s considered table stakes for the dominant working aged populations in the U.S. today.
The labor market has fundamentally shifted, and job seekers and employees have positive attitudes toward pay transparency, and it has now become a routine expectation. While some employers have yet to implement pay transparency, staying competitive in today’s labor market requires aligning compensation strategies with the expectations of current and prospective employees.
Here’s a short breakdown of these generations are looking at pay transparency, and these will vary based on personal circumstances and experiences.
Job Candidates’ Perspectives
Most candidates strongly favor pay transparency during the job search process. They appreciate knowing salary ranges upfront because it helps them determine whether a position aligns with their financial needs and career goals before investing time in the application process. This transparency reduces wasted effort on both sides and allows for more informed decision-making.
Candidates also report feeling more trust toward employers who are transparent about compensation, viewing it as a sign of organizational integrity and fairness. However, some candidates worry that posted ranges might be artificially wide or that employers might anchor to the lower end of published ranges.
Current Employees’ Views
Employees generally support transparency within their current organizations, seeing it as promoting fairness and reducing workplace tension around compensation questions. When employees can access information about pay scales and understand how their compensation compares to others, it often increases their sense of being treated equitably.
However, employee reactions can vary significantly based on what the transparency reveals. Those who discover they’re paid fairly or above market rates typically respond positively, while those who learn they’re underpaid may experience decreased satisfaction or motivation.
Common Concerns and Benefits
Employees and candidates appreciate that transparency can reduce pay discrimination and create more objective compensation discussions. It helps them understand career progression opportunities and salary growth potential.
Some concerns include privacy preferences, potential workplace tensions if significant pay differences are revealed, and questions about whether transparency leads to actual pay equity or just visibility into existing inequities.
Overall, research suggests that most workers view pay transparency as beneficial for creating fairer, more trusting workplace relationships, even when the information revealed isn’t always favorable to them personally.
Employers must design compensation strategies that scale with business growth. Fortunately, today’s technologies like LaborIQ simplify this process, helping HR teams build and manage pay bands, benchmark salaries, and ensure pay equity at every level.
