Why most Australian workers demand pay transparency and would quit over unfair salaries
Many Aussies are wanting transparency on a key issue at work, with some threatening to quit their jobs if they don’t like the outcome.
Australians are demanding to know how much their co-workers get paid, with many threatening to quit their jobs if they discover they are outearned by less competent colleagues.
Almost three-quarters (70 per cent) of Aussie workers want their company to make all salaries visible internally and say pay secrecy benefits employers more than anyone else, research from recruitment firm people2people shows.
According to the findings, almost half (43 per cent) of workers would look for employment elsewhere if it was revealed an inept colleague was paid more – which has prompted warnings from experts not to make rash decisions.
“Ninety-five per cent of the time, there’s a reasonable justification (for co-workers receiving different rates of pay),’’ said people2people HR solutions head Suhini Wijayasinghe.
“It can be easy to jump the gun when you see a colleague that might be in a similar role being paid more but you have to know the context.’’
The reasons for pay inequity
The research showed younger workers were behind the push for greater transparency, with 80 per cent of Millennials and Gen Zs wanting to know the salaries of their colleagues – and three-in-five already sharing details about their own pay.
In comparison, 68 per cent of gen Xers and 63 per cent of Baby Boomers were in favour of more openness about salaries – with many older workers left feeling awkward or even offended having such conversations, MsWijayasinghe said.
Across all age groups, 21 per cent of workers said only salary ranges should be shared, rather than exact figures.
MsWijayasinghe conceded there were “a lot of situations where you could see significant discrepancies’’ in pay rates for co-workers, with some due to continued bias and discrimination in workplaces.
However, in other instances, he said different pay rates may be a result of higher qualifications, more experience and greater responsibilities, or – in the case of a lower salary – a trade-off for non-monetary benefits.
Potential for conflict
However, Mick Owar, founder of sports recovery centre Primal Recovery, said making the pay details of workers available to everyone within a company would “open up a can of worms’’.
“If you can’t negotiate your way into having good pay for what you are doing then that’s your problem, not everybody else’s problem,’’ said Mr Owar, who worked for others before starting his own company.
“You don’t need to be (sticking your nose) in everybody’s business.
“If you want to earn more, just have a chat with your boss and say, ‘How could I add more value to this business so I get more value back?’
“If someone came to me and said that, I’d like them. I’d like them a lot because I know they don’t have a whinge mentality – they’re a go-getter.’’
Mr Owar said being aware of what others in a workplace were paid would cause conflict and jealousy.
He said young workers aggrieved at not being paid what older co-workers received did not yet have the knowledge and experience that warranted a higher salary.
Don’t rush to quit
Employment Hero global head of people Liam D’Ortenzio urged any workers who felt they were paid less than those with a lower skillset or in the same role to speak with their employer.
“Every employee’s circumstances are completely unique to them and there’s often very valid reasons for differences in pay, (including) experience, people’s tenure or a relatively different role scope or performance outcome,’’ he said.
“It’s really understandable to feel frustrated (if a colleague is paid more than you are) but leaving a role shouldn’t be the first step.
“Don’t jump the gun.
“Go to your manager and have a really open conversation about
pay.’’
Mr D’Ortenzio also encouraged workers to compare their salary to data available in recruiter salary guides to ensure they were being paid fairly.
Benefit of pay transparency
Maddie Moore, 27, hoped greater salary transparency would help workers achieve fairer pay.
In a previous role in the music industry, Ms Moore said she was paid far less than others who had fewer responsibilities.
“I was constantly given the jobs nobody wanted, the worst shifts, and I was the lowest paid employee despite doing reception, online sales, shop sales and assisting in repairs,’’ she said. “I discovered I was being paid six dollars an hour less than the newest employee who only worked in sales.’’
After complaining to her boss, Ms Moore was eventually given a pay rise but said “there were still others earning far more despite having fewer skills’’.
The experience saw her shift careers and Ms Moore is now director at a childcare centre, where she is open with co-workers about her pay.
“Pay can be such a touchy topic and I don’t think it should be,’’ she said. “Pay transparency can show staff who are starting at the bottom what their progression within the company may look like financially.
“At my centre … I was working insane hours, dealing with a lot of difficult behaviours with children and families, managing 30-plus staff (and) providing ongoing professional development for them all.
“My staff were incredibly grateful and had a lot of respect for me because I was doing so much and not getting paid a crazy amount. It showed them I was there because I genuinely care about the kids, the school, the family, my centre and my wonderful staff.’’
More Coverage
Originally published as Why most Australian workers demand pay transparency and would quit over unfair salaries
Siblings take brother to court over $20m farm
