Pay Transparency Is Crucial For Attracting Gen Z Talent In 2024

HR can bridge the gap between employers and employees

Disclosing salary information in job postings is vital when attracting top talent. Gen Z graduates are more open to discussing salary than previous generations, and for good reason. Considering modern-day inflation rates, more expensive housing and higher living costs, Gen Z has much more to worry about in the future.

Why Pay Transparency Matters

Gen Z graduates value transparency, and that includes disclosing salary information. The younger generation feels strongly about what the company stands for, and openness helps them make critical decisions that can affect their long-term plans. Gen Z believes companies that share information about themselves and their practices can be a conducive environment for growth and personal development.

That’s why it only makes sense that Gen Z considers salary information upfront before applying for a job. An Adobe survey of 1,000 recent and post-secondary graduates reveals that 85% of respondents will not respond to postings with vague or no salary information. Here are several other reasons Gen Z prefers seeing pay information in listings:
 

• They value fairness: Gen Z believes in receiving fair pay for services rendered. They also think everyone in the workplace should receive equal opportunities to advance their careers and get equivalent salaries.

 

• They prefer not to waste time: Gen Z was born into a fast-paced world and prefers to view their time as more than a commodity. If they see job postings far from what they’re looking for, they simply scroll to the next one. They see no reason to apply for a position with uncertain details.

 

• They believe in modern work values: Before, a good-paying job was enough to make job hunters take a role in any company. However, Gen Z considers the business’s culture and other factors before accepting an offer. They value ideals reflected by salary information, benefits and working conditions.

 

• They value trust: Transparency builds trust in any relationship. Young professionals feel they can trust companies more when they are open to discussing formerly-hush-hush topics such as salaries.

 

• They believe in working for discrimination-free companies: Some employers take advantage of applicants by making them low offers if they’re foreigners, women or minorities. Pay transparency helps overcome hiring biases and discrimination and promotes equity in the workforce. It also signifies accountability — another factor that next-generation applicants look for in an organization.

How Can HR Use Pay Transparency to Attract Top Gen Z Talent

Gen Z applicants come from a tech-savvy generation, constantly relying on technology to stay updated with current market trends. They use mobile devices to hunt for jobs, research excellent workplaces and learn more about HR best practices that catch their attention. It’s easy for them to recognize organizations that have the same values. 

Here are some strategies HR personnel can use to leverage pay transparency to recruit Gen Z applicants, especially since the 2024 hiring season is approaching fast.

Use Company Values as a Recruitment Tool

HR teams can attract top Gen Z talent if they show applicants they’re a great fit, considering their alignment with company values. People appreciate the ability to learn and grow, and about 75% of employees who have made an internal move will likely stay with their company. Companies can use pay transparency and other ideals to show qualified candidates they are eager to communicate and create a healthy working environment where Gen Z graduates can grow and thrive. 

Be Competitive With Job Offers

Being open with salary ranges can signal applicants that the company can offer equal pay for equal work. Less-informed HR teams can chase away qualified candidates if they post job openings with vague details about compensation, benefits and expectations. Pay transparency helps Gen Z applicants make informed decisions and choose an environment where they feel comfortable and valued.

Improve Company Branding

Job postings are like sales ads for employers. Companies may offer some of the best benefits, compensation packages and other perks. Still, if they’re not listing them on job descriptions, they’ll find out soon enough that they’re not getting the candidates they hoped to recruit. 

HR personnel can use pay transparency to attract a tech-savvy and highly qualified workforce by making the company more attractive. Fostering a culture of openness can improve a company’s branding and generate buzz that piques the interest of young, talented professionals.

Use Compliance as a Marketing Tool

Some states require companies to be transparent in their job postings. Disclosing salaries during the hiring process can show Gen Z applicants that the business they’re interviewing with complies with local laws and regulations. Working for a fair, equal-opportunity employer is a green flag that many candidates will notice immediately.

Promote a Positive Work Environment

Disclosing salaries upfront shows candidates that companies mean business. HR personnel can use pay transparency to recruit and retain quality employees by providing a positive work environment where they feel happy. 

Qualified candidates interested in salary disclosure will be delighted to find defined job roles, ensuring career progression and shared values during onboarding. Companies hoping to attract top talent in the competitive job market must openly communicate with applicants so they can be partners in growth.

Leveraging Transparency in Human Resources

Human resources can bridge the gap between employers and employees. Transparency can go a long way in hiring and retaining next-generation talent who can bring value to any organization. HR personnel must capitalize on its strengths to attract qualified candidates and build a highly valuable workforce.

Zachary Amos is a tech writer with a special interest in HR technology, automation, and cybersecurity.