Young people embrace ‘taboo’ salary trend

There’s a ‘taboo’ salary trend that Gen Zers and Millenials are happily embracing but older workers may find confronting.

“What is your salary?”

If you’re a Millennial or a Gen Zer, you’ll likely answer that question without even flinching.

A survey by Robert Half in 2023 found that 86 per cent of Gen Zers are open to discussing their salaries, followed by 59 per cent of Millennials.

The numbers significantly drop, though, for older workers, with only 40 per cent of Gen X workers and 41 per cent of Baby Boomers prepared to talk about their take-home salaries.

Maddy Carty, 30, who scrapes in as a Millennial (the cut-off age to be considered Gen Z is 27), said salary transparency is expected in her friend group.

“When I had male friends, you could also see if there were any pay discrepancies there,” she told news.com.au.

According to the Australian Bureau of Statistics, the gender pay gap is still at 11.5 per cent. As of May 2023, for every dollar men earned on average, women earned 89 cents. That’s $231.50 less than men each week.

Over the course of a year, this difference adds up to $12,038.

Ms Carty talks about her salary with mates. Picture: Instagram/maddycarty

86 per cent of Gen Zers are open to discussing their salaries. Picture: iStock

Ms Carty, who works in media, explained that when she lived in London, especially when working for big corporations, it made sense to discuss what she was earning with her co-workers and peers to ensure she wasn’t being underpaid.

“It was sort of like camaraderie. It feels like you’re in the trenches when you are working in a big corporation,” she said.

Ms Carty said sharing salaries helped her understand when she deserved to earn more and when she was on a good wicket.

The 30-year-old said sharing salaries isn’t just to be nosy and learn what your mates are earning; it quickly becomes a “bargaining tool” that you can use whether you’re looking for a pay rise or negotiating a salary for a new job.

“Knowing what your friends are earning is a good bargaining tool, and then you can negotiate what is fair, and it gives you evidence to back yourself,” she said.

Ms Carty said she thinks people her age and younger are just much more “comfortable” discussing money.

She’d consider it a “red flag” if a company put into her contract that she wasn’t allowed to discuss her salary.

“This generation is much more transparent about everything. I think my friends are comfortable sharing what they earn, so everyone has a measuring stick to know if they are getting paid fairly for the work they do,” she explained.

She said learning people’s salaries can become a helpful “bargaining tool”. Picture: Instagram/maddy_carty

She wants to encourage women to ask for more money. Picture: Instagram/maddycarty

Ms Carty said it also isn’t just about sharing salaries with people in your industry; talking about money in general can be helpful.

For instance, she has a mate who works in childcare, and because they’ve always been upfront with each other about what they earn, it was easy for her to notice when her friend was being underpaid for extra work.

It was much easier for her to encourage her mate to ask for more money because she was aware of her individual circumstances.

“I’m always encouraging her to go for a pay rise. You should compare your salary with your friends to make sure you aren’t getting ripped off,” she advised.

Ms Carty said that she’ll always want to share her salary if it empowers other “women to push for more money”.

Financial expert Rebecca Pike said salary sharing has become a “prevalent trend” among young Australians.

“This openness about their earnings is a stark contrast to previous generations who often viewed discussing salaries as taboo,” she said.

“Platforms like TikTok and Instagram have normalised discussions about personal finances, including salaries.”

Ms Pike said this is a positive development, and the fact that young people feel confident enough to talk about money is a good sign.

“Gen Zers are comfortable sharing their experiences and advocating for fair compensation having grown up in a more progressive era,” she explained.