More than half of Gen Z employees were found to be more open about pay transparency in the workplace.
Since coming into effect in early June, the EU Pay Transparency Directive dictates that employers have to acknowledge a new set of rules and guidelines governing how pay is discussed and related information is shared.
Designed to reduce pay inequality in the workplace, the Directive means organisational leaders must provide job applicants with details on initial pay or pay ranges and ensure that job vacancy notices, titles and recruitment procedures are gender-neutral and non-discriminatory.
Employers are also limited in their line of questioning, mainly, they are prohibited from asking candidates about previous salaries. Information regarding an employee’s pay level and how this is determined must also be made more accessible.
Recruitment agency Robert Walters, in the months of June and July, conducted research to explore how modern Irish professionals regard the often taboo topic of pay transparency in the workplace. The company collected data from 1,000 Ireland-based employees aged 18 and older.
What was discovered is that Gen Z aged professionals in particular are more likely to openly discuss their salary at work. 54pc of contributing Irish Gen Z employees were found by Robert Walters to be “disputing existing workplace taboos and discussing their salaries openly with colleagues”.
According to the report, this suggests that, in the wake of the EU Pay Transparency Directive, “the drive for salary transparency is not solely a top-down agenda,” particularly as younger generations of the workforce advocate for openness and transparency in pay discussions.
Commenting on the results of the report, Suzanne Feeney, the country manager for Ireland at Robert Walters, said, “While policy changes are mandating organisations to disclose salary and reward data publicly, we’re also seeing this practice at play at a grass-roots level.
“In fact, it’s Gen Z who are increasingly challenging the traditional attitudes of discretion and confidentiality and opting to open up the conversation around salary with colleagues.”
The age divide
This push for greater transparency is not a motivator amongst all age-based cohorts, found the research. Older employees who took part in the survey were found to be less concerned with discussing financials than their younger counterparts.
Only 29pc of professionals aged 45 to more than 61 explored the topic openly, compared to 41pc who argued it is too personal a matter. From a Gen Z perspective, the report indicated that 38pc of participants in this group don’t perceive any barriers preventing them from openly discussing their salary.
The scenarios in which they most often choose to discuss the issue tends to be if it is with a close colleague (32pc) or if there is a situation in which the sharing of such information is reciprocal (22pc).
Feeney said, “Leaders are now managing workplaces with up to five different generations, each with their own views on issues like salary transparency, workplace culture and employer expectations. For some, pay remains a private matter.”
She added, “As the EU Pay Transparency Directive comes into full force in Irish workplaces, professionals will gain more autonomy in requesting information around their own pay and average pay levels within their organisation. Management teams and leadership will still play a critical role in setting the tone for what is appropriate when salary is discussed in the workplace.
“Professionals have different expectations of salary transparency, but fairness and inclusivity should always be prioritised. When conversations stay constructive, workers don’t risk sharing any information they don’t feel comfortable with, and any discrepancies or inequalities can be identified and quickly addressed.”
In early July, job search platform Mokaru analysed nearly 1.8m global job listings posted between the start of April and end of June on the career sites of 48,758 employers, across more than 46 applicant tracking systems. What was noted is that many organisations and countries have yet to fully adapt to the new rules.
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