Would you tell your colleagues what you earn?

Younger generations are more likely to agree that salary transparency is good for equality, LinkedIn data shows. But across all generations, only a minority is prepared to tell colleagues what they earn, Siobhan Morrin writes.

At a time of rising inflation, conversations about pay have come to the fore. Though several recent studies from Future Forum and Capgemini have shown the growing importance of flexibility and purpose for professionals, compensation is still a key consideration.

LinkedIn's Workforce Confidence Index – based on a survey asking UK workers how confident they feel each quarter on a scale of -100 to +100 – shows finances are where professionals are feeling least confident. Though overall UK confidence dropped two points between the start of July and end of September (ending at +24), professionals' confidence in their finances was more volatile across the quarter and remains at a lower bar. In July, professionals' confidence in their finances stood at +11 – lower than their confidence in getting a job (+46) and being able to progress in their careers (+21). By the end of September, people's financial confidence ended at +9, though it did reach a low of +7 during the quarter.

The data also shows that less than half of UK workers feel well paid – on average, 43% of respondents said they were well compensated for their work, and 37% disagreed. However, only around a quarter (26%) said they were planning to ask for a pay rise in the next six months.

Who do you tell about your salary?

When it comes to salary, UK professionals keep their cards close to their chest. While 60% said they'd tell their family what they earn, under a third (30%) said they'd be prepared to tell a close friend. Even fewer would discuss what they earn with colleagues or peers – only 17% said they would tell a close colleague what they earn.

However, on an equity and diversity level, salary transparency is high on the agenda. Recent research by the Social Mobility Foundation found that professionals from working class backgrounds earn almost ￡7,000 a year less on average, and working class women and people from ethnic minority backgrounds face a double disadvantage. "It's time for greater transparency on pay," Dr Margaret Casely-Hayford CBE , chair of Shakespeare's Globe and chancellor at Coventry University, wrote in a LinkedIn post. "Those who fall victim to this form of pay injustice are also more likely to live in poverty in old age as pension is of course, a reflection of pay; and naturally the poorer paid are less likely to be in a position to save," she adds, asking whether ESG should monitor such pay differentials and even reward managers on a "fairness" metric.

Part of the solution suggested by the Social Mobility Foundation, but also by researchers in previous studies, is greater salary transparency in job ads. "Salaries shouldn't have to be a guessing game. The lack of clarity contributes to inequality in the workplace," writes recruiter Karley Vye .

Salary transparency varies across generations

LinkedIn's data shows a large proportion of professionals in the UK are sympathetic to the idea, with 48% of respondents agreeing "people sharing their pay information will lead to better equality in pay". Notably, this figure rises to 76% among gen Z workers, who are also the most likely to share their own salary figure with colleagues, peers and mentors. A majority of millennials (63%) also believe greater salary transparency will lead to better pay equality. While just under half (49%) of gen X workers agree, they were also the most likely to feel anxious about sharing their own salary (39% said they would feel anxious), and, along with millennials, more than one in four said sharing their own salary was frowned upon in their workplace.

On LinkedIn, JournoResources founder Jem Collins shares her passion for pay transparency and the impact it can have on equality. "It can't just be us saying the same old phrases like 'know your worth' or 'push for as much as makes you feel sick'. They're useful, but we all need some numbers to frame the debate," Collins writes.

On the whole, the youngest generation in the UK workforce is prepared to be most open with their own salary information, except when it comes to sharing with their family – both millennials and gen X are also more open than gen Z on that front. The biggest contrasts come between the youngest and oldest generations, with 51% of gen Z saying they would tell their close friends their salary, compared with 23% of baby boomers.

However, the openness drops off sharply across all generations when it comes to sharing with colleagues, peers and mentors. Only a third of gen Z said they would tell a close colleague their salary and even fewer would share with peers outside their company. For millennials, there is slightly more openness than other generations to telling peers their salary, with 22% prepared to share their own compensation, compared to the overall UK average of 13%.

So, while there is awareness about how transparency can help in closing pay gaps, greater openness will likely need to come at an organisational level – for instance through salary bands in job ads – to have a significant impact on attitudes.

Do you think it's helpful to share your salary with friends, colleagues or peers? Can transparency can help on an individual level when negotiating a new salary? And how far can salary transparency help improve pay equity? Let us know your thoughts in the comments below.