Pay transparency has shifted from a workplace “nice to have” to a growing expectation, particularly among younger employees. 

2025 research from people2people Recruitment shows that a clear majority of Australian workers believe it’s time to lift the lid on salaries, with 70% saying companies should make all salaries visible internally.

The findings highlight a strong appetite for openness, fairness and accountability in how organisations pay their people. At the same time, the research reveals a clear generational divide in how comfortable employees feel discussing money, and how they respond when pay inequity comes to light.

Why salary transparency is gaining momentum

For many employees, salary secrecy is increasingly viewed as outdated. According to the research, most workers believe pay secrecy benefits employers far more than employees themselves. Around seven in ten respondents felt employers gain the most when salaries are hidden, while only a small minority believed employees benefit from keeping pay private.

This sentiment reflects a broader shift in workplace expectations. Employees want to understand how pay decisions are made, what progression looks like, and whether they are being treated fairly in comparison to their peers. In a tight labour market, transparency is also becoming a trust issue – organisations that withhold information risk appearing evasive or inequitable.

That said, not everyone is asking for full disclosure. Just over one in five employees believe salary ranges should be shared rather than exact figures, suggesting some workers still value a degree of privacy while supporting greater openness overall.

A clear generational divide

One of the most striking findings in the research is how strongly attitudes differ by age.

Millennials and Gen Z are the most supportive of salary transparency, with around 80% believing all salaries should be visible internally. In contrast, support drops to 68% among Gen X and 63% among Baby Boomers.

These differences also show up in real behaviour. Younger workers are far more likely to openly share their salary information with colleagues and feel comfortable being asked directly what they earn. Among Millennials and Gen Z, more than six in ten have already discussed their pay at work. For older generations, those conversations remain far less common.

Comfort levels mirror this pattern. While half of all employees say they would feel fine if a colleague asked about their salary, that figure rises sharply among younger workers and drops below 40% for Baby Boomers. Older employees are more likely to feel awkward or even offended by direct pay discussions, reflecting long-standing workplace norms around privacy.

What happens when pay inequity is exposed?

Transparency doesn’t just influence how people talk about money – it also affects how they respond when something feels unfair.

The research found that 43% of employees would start job hunting if they discovered a less competent colleague was earning more than them. This reaction is strongest among Gen X and Baby Boomers, who are more likely to quietly look elsewhere rather than raise the issue internally.

Younger workers, on the other hand, are more inclined to talk it through, either with colleagues or directly with their manager. While they are still willing to leave, if necessary, they are more likely to seek clarity or challenge inequity before walking away.

This distinction matters for employers. Lack of transparency doesn’t prevent dissatisfaction – it simply changes how and when it surfaces. In many cases, it results in disengagement or unexpected resignations rather than constructive conversations.

Transparency only works if pay is fair

While salary transparency can promote trust, equity and inclusion, the research also makes one thing clear: transparency without fairness can backfire.

If pay structures can’t withstand scrutiny, making salaries visible may expose inconsistencies, bias or outdated practices that damage morale rather than improve it. For employers, the real challenge is not whether to share salaries, but whether their remuneration frameworks are defensible, consistent and clearly explained.

Employees are increasingly willing to vote with their feet if organisations don’t adapt. As expectations shift, businesses that fail to address pay equity risk losing talent to employers who are more open and more prepared.

Three practical steps for employers

For organisations considering or expecting requests for greater salary transparency, the research points to a clear starting point:

1. Audit pay structures: Review salaries across the business to ensure they are equitable, competitive and consistent before increasing visibility, or before the younger workforce starts expecting or requesting visibility.
   
   
2. Define a clear pay philosophy: Be transparent about how pay bands, increases and progression are determined, so employees understand the “why” behind decisions.
   
   
3. Embed fairness into culture: Salary transparency should sit within a broader commitment to equity, inclusion and open communication, not exist in isolation.

The bottom line

Salary transparency is no longer a fringe idea. For many Australian workers (particularly younger generations who are the future of our workforce), it is fast becoming an expectation. Employers who approach it thoughtfully, with strong foundations in equity and communication, have an opportunity to build trust and retain talent. Those who ignore the shift may find the conversation happening anyway, just without them in the room.