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Welcome back to The Gen Z Guide for Employers! In this series, we will challenge some of the prevailing Gen Z workforce myths. Our ultimate goal is to debunk these myths and create a level of understanding between Gen Z and the generations that came before us to make workplaces:
More efficient
More inclusive
Better places to work
Each newsletter will be written from the perspective of an employer or a member of the Gen Z workforce. In this edition, Tameika Moore, Pollen’s Community and Marketing Manager, returns to unpick some common workplace misconceptions around Gen Z and showcase resolutions and steps that businesses can take to create more inclusive and meaningful workplaces.
Over the past few months, my team and I have been breaking down some of the biggest myths about Gen Z in the workplace such as our discipline, loyalty, and (supposedly short) attention spans. Now, I’m switching things up! In this newsletter, I’ll be diving into a wider range of topics that affect businesses, but always through a Gen Z lens, sharing insights and perspectives that can help businesses better understand and connect with our generation.
In the next few issues, I will be diving into all things salary and company benefits featuring insights from Funmi Olufunwa. Funmi has built an impressive career in law and finance and is passionate about financial education. Today, I will be focusing on the impact of salary transparency and its benefits for both employees and businesses.
The Problems with Salary Secrecy
It’s 2025, and we’re still seeing job listings without salary information. My question is, why?! Why withhold one of the most crucial details that candidates need in order to make an informed decision about whether a job is right for them? How did this even become standard practice in the first place?
Honestly, I’ve been baffled by this ever since I started job hunting a few years ago. Outdated practices like this are becoming less and less tolerated by today’s workforce, especially Gen Z. In fact, a recent Future Workforce Study by Adobe found that 85% of upcoming and recent graduates are less likely to apply for a job if the salary range isn’t disclosed (Lhh, 2024). This is a stark contrast to previous decades when transparency around pay was almost nonexistent (Lhh, 2024) and actually quite taboo.
As Funmi puts it, “Jobs should be advertised with at least a salary range—how are people meant to know whether they should invest their time into a role?!” From our perspective, seeing a job listing without a salary instantly raises a red flag even before we read the rest of the description. For Gen Z, openness and transparency aren’t just niceties; they’re fundamental workplace values that start from the moment we read a job post. Listing a salary upfront shows that you respect both your time and ours and can allow us to make an informed decision as to whether we want to invest hours into curating an application for your business.
You are wasting your time–and ours!
The truth is, a lack of salary transparency isn’t just a disadvantage for employees, it’s a problem for businesses too. Imagine this: a candidate reads a job description that sounds like a perfect fit. They apply, ace the interview, and your team is excited about bringing them on board. But when salary discussions begin, it turns out their expectations don’t align with your budget. The candidate walks away and suddenly, all the time, effort and resources spent on the hiring process are wasted. The sheer amount of our time being wasted is staggering. Adzuna estimates that candidates collectively lose 14 million hours each year applying for roles that aren’t suitable.
More than half of job seekers have even declined a job after discovering late in the process that the salary wasn’t what they expected (Hireserve 2023).
The time wasting is especially boggling when keeping in mind that hiring isn’t cheap and certainly isn’t easy. CIPD estimates that the average cost of filling a vacancy (including labor costs) is £6,125, rising to £19,000 for managerial roles (Talent Insight Group 2022). On top of that, new research suggests that 74% of UK businesses feel hiring has become harder in the past five years. Recruiters are struggling with inefficiencies, with 63% wanting to be more productive but 61% feeling like they’re wasting time (Agrawal, 2024).
Another risk is that you may have a candidate who connects with the job and company, is unhappy with the salary but accepts the job anyway. It’s no secret that employees often leave in search of better pay and benefits and this scenario may cause an employee to become disengaged and eventually leave. According to a FlexJobs study, 59% of employees cited low salary as the main reason they quit their job (Labitoria, 2022). This is because, regardless of how much someone enjoys a role/responsibilities, when workers realise they’re being underpaid they’re far more likely to seek out companies that offer competitive pay (Labitoria, 2022).
Whether we like it or not, salary plays a crucial role in keeping employees motivated, engaged, and loyal!
In the long run, failing to offer fair pay doesn’t just hurt employees; it creates a costly cycle of hiring, training, and turnover that businesses could easily avoid with greater transparency from the start.
Salary transparency impacts your image too!
Ultimately, prioritising pay transparency, fairness, and adaptability isn’t just an ethical choice—it’s a strategic advantage. When companies are open about pay, they attract the right candidates and build a reputation as ethical, inclusive, and socially responsible employers (Ferry, 2024). A strong employer brand plays a crucial role in this. As William Tincup, President at Recruiting Daily explains, an employer brand is a blend of values, culture, and experiences that shape how an organisation is perceived (Hireserve 2023). In today’s job market, transparency, especially around pay, is central to that perception. Companies that embrace it stand out, while those that don’t risk losing amazing candidates.
Salary History Discussions Should Stay in 2024
A lack of salary transparency unearths a deeper issue whereby employers base compensation on a candidate’s previous salary rather than their actual value. As Funmi puts it, “Basing someone’s value on their past salary may not reflect just how valuable they actually were.” This approach perpetuates pay inequity, particularly for those who were underpaid in previous roles. Funmi adds that “If companies base salaries on a previously underpaid role, the person will continue to be underpaid”
Many employees are already earning less than they deserve, and tying future pay to past earnings only reinforces these disparities. Fawcett Society polling found that 58% of women and 54% of men felt that being asked about their salary history resulted in a lower offer. Additionally, 61% of women and 53% of men said it hurt their confidence to negotiate better pay (Hr-inform.co.uk, 2024).
This practice doesn’t just affect individuals, it harms businesses too. Employees who feel undervalued or unfairly paid are more likely to disengage or leave, contributing to high turnover and lower morale. In fact, 80% of people believe pay should be based on skills and responsibilities, not past salaries (Russon, 2021).
Ultimately, failing to address pay inequities can lead to deeper issues such as gender and racial pay gaps. Without regular compensation reviews and fair, transparent pay structures, businesses risk losing top candidates and damaging their reputation as an employer. As Peter Cheese, the head of CIPD put it, “If we think we can get away with paying the absolute minimum, we might be disappointed in our ability to recruit.”
So, what can be done?
If there’s one key takeaway from this article, it’s that salary transparency is essential. Displaying pay information in job descriptions (even if it’s just a salary range) sets the right tone and ensures both employers and candidates are aligned from the start. Transparency not only saves time and resources but also fosters trust, attracts the right candidates, and strengthens an organisation’s reputation.
Some key actions businesses can take:
Wave goodbye to salary history questions—they are outdated and unhelpful! Pay should reflect the value of the role, not a candidate’s past earnings. As Funmi Olufunwa puts it, “Think about what this role is worth—fairness and compensation are the key words here.”
Commit to regular salary reviews to identify and address pay disparities. Regular salary reviews also allow businesses to be aware of market trends and understand what is needed to give companies a competitive edge in attracting and retaining talent (Figures.hr, 2024). At the very least, salary reviews will allow you to have a clear understanding on what it is your company can afford to pay employees, allowing for more transparency regarding salary from the beginning of a hiring process.
Provide clear frameworks for pay progression and career growth. Employees, Gen Z or not, would greatly appreciate clear frameworks for pay progression and career growth! This allows us to see a clear pathway to advancement and fosters way more engagement in the company
Thank you for reading and if you have any thoughts, please feel free to comment under this post! Looking to create a more positive workplace? Stay tuned for the next Gen Z Guide, where I’ll be diving into how company benefits play a huge role in attracting and retaining top talent!
Tameika
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References
Agrawal, A. (2024). Majority of UK businesses say hiring has become harder. [online] SME Magazine. Available at: https://www.smeweb.com/majority-of-uk-businesses-say-hiring-has-become-harder/.
Ferry, K. (2024). The Shift to Pay Transparency in the Workplace. [online] www.kornferry.com. Available at: https://www.kornferry.com/insights/featured-topics/leadership/pay-transparency-in-the-workplace.
Figures.hr. (2024). How Often Should You Perform a Compensation Review? [online] Available at: https://figures.hr/post/how-often-should-you-perform-a-compensation-review.
Hireserve. (2023). Is salary transparency key to a Gen Z friendly Employer Brand? - Hireserve. [online] Available at: https://hireserve.com/is-salary-transparency-key-to-a-gen-z-friendly-employer-brand/ [Accessed 12 Mar. 2025].
Hr-inform.co.uk. (2024). Employers urged to stop asking for salary… | CIPD HR-inform. [online] Available at: https://www.hr-inform.co.uk/news-article/employers-urged-to-stop-asking-for-salary-history [Accessed 12 Mar. 2025].
Labitoria, C. (2022). 7 grave consequences of underpaying employees. [online] www.hcamag.com. Available at: https://www.hcamag.com/us/specialization/benefits/7-grave-consequences-of-underpaying-employees/410595.
Lhh (2024) Why gen Z won’t apply for a job without salary information, LHH. Available at: https://www.lhh.com/uk/en/insights/why-genz-wont-apply-for-a-job-without-a-salary-listed/#:~:text=If%20organisations%20today%20are%20not,t%20mention%20the%20salary%20range (Accessed: 12 March 2025).
Russon, M.-A. (2021). Stop asking about salary history, employers urged. BBC News. [online] 18 Nov. Available at: https://www.bbc.co.uk/news/business-59326773.
Talent Insight Group (2022). The cost of recruitment | Insights | Talent Insight Group. [online] www.talentinsightgroup.co.uk. Available at: https://www.talentinsightgroup.co.uk/insights/cost-of-recruitment.
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