How Americans feel about salary transparency

The push for salary transparency is emerging as a pivotal movement, gaining momentum across the U.S. as states introduce laws and many Americans consume “how much do you make” content on social media. Ten states in the country now have pay transparency laws, according to Rippling, with California being the first state to do so in 2018.²

We’ve surveyed over 1,200 Americans to find out what they think about the pay transparency movement and the degree to which they experience it themselves. The results reveal a range of differences across age, gender, salary, industry and seniority. Read on to find out how Americans feel about salary transparency.

The state of salary transparency in 2024: Key findings

For many workers, once their direct deposit hits, they don’t think about it again, but a new movement of salary transparency is changing the discussion around pay. With 10 states introducing pay transparency laws and other jurisdictions considering doing so,² it’s a clear trend that aims to challenge traditional working cultures and tackle pay inequality. Here are some of the key findings from our survey:

• Nearly half of respondents believe that employees would benefit from greater pay transparency.
• There is a generational divide, with 53.42% of those aged 18 to 27 believing employees would benefit from greater pay transparency and only 38.89% of those aged 60 to 78 believing this.
• 82.61% of those aged 18 to 27 in our survey would be comfortable with sharing their salary, while only 33.33% of those aged 60 to 78 would be comfortable with this.
• There are also knowledge gaps at higher organizational levels, with only a quarter (25%) of respondents knowing how much their boss earns. Additionally, almost half (45%) of managers believe it would be uncomfortable if the people they manage knew how much they earn.
• Fewer than one in five Americans would feel guilty if they learned they were paid more than their co-workers.
• Nearly 30% of respondents would, at the very least, ask for a raise if they found out their coworkers made more than them.

Salary transparency: a generational gap

While the majority of respondents (57.02%) said they are comfortable sharing their salary information with other people, it does vary by generation. The overwhelming majority of those aged 18 to 27 at the time of the survey believe in pay transparency, with 82.61% saying they are comfortable sharing salary information.

This goes down to 60.40% for those aged 28 to 43, 42.28% for those aged 44 to 59 and 33.33% for those aged 60 to 78. This shows a clear shift in attitudes toward being open with how much a person earns each year. Additionally, three in four of those aged 18 to 27 believe that companies should be legally required to make salary information for all employees public within the company, as do 62.55% of those aged 28 to 43.

However, fewer than half of those aged 44 to 59 (44.14%) and 41.67% of those aged 60 to 78 agree. At the same time, 74.07% of Generation Z managers said they wouldn’t be uncomfortable with people they managed knowing how much they make. 44.23% of those aged 60 to 78 said they also wouldn’t be uncomfortable with this.

Considering the vastly different economic and social environments each generation has grown up in, these results are not hugely surprising. For example, while social media usage naturally slants towards younger age groups, usage numbers in the U.S. are not hugely different when comparing the four generations.

According to Insider Intelligence and eMarketer, 56.4 million Generation Z and 51.8 million Generation X individuals used social media as of 2023.³ According to our survey, 75.16% of those aged 18 to 27 have seen social media content where people are asked how much money they make.

Almost the opposite is true for Generation X, where only 31.17% have viewed this type of content, indicating that pay transparency is a much more prevalent topic of discussion for those aged 27 and under. The majority of all age groups believe this content is helpful overall for pay transparency (83.27%).

Who do Americans share pay information with?

Pay transparency isn’t black and white — and it isn’t just confined to the office. Aside from your co-workers, you might be inclined to share or withhold information about your salary from friends, family or your romantic partner. So, who do people prefer to have this discussion with?

In general, 57.02% of Americans who took our survey were comfortable with sharing their salary with other people. Only 4.86% of respondents would not be comfortable sharing their salary information with anyone. 85% of respondents would be comfortable sharing their salary with at least their romantic partner, with 90% saying they know how much their romantic partner earns.

As far as family goes, 73% of respondents said they would share salary information with family, while 58% said friends and 44% said co-workers. Around 43% of respondents said they know how much their co-workers make. But interestingly, only 39.13% of those aged 18 to 27 are privy to this information. 35.01% of respondents said their co-workers know how much they make, and 46.65% do not know the full possible budget or pay range for their position.

Most Americans think companies should be legally required to make salary information for all employees public within the company. Additionally, 58% think employers should take the lead in promoting salary transparency, while 29% think the responsibility lies with employees.

Do Americans think they are fairly paid compared to their co-workers?

Two-thirds of Americans believe they are fairly compensated when compared to their co-workers, while 32.06% feel they are underpaid and just 1.28% feel they are overpaid. Considering the persistence of the gender pay gap, more women believe they are underpaid (38.03%) than men (26.67%).

The pattern is also similar with age, as more of those in lower age groups (40% of Generation Z and 33% of millennials) think they are relatively underpaid compared to around 27% to 28% of Generation X and baby boomers. 44% of respondents at a junior level of seniority think they are underpaid compared to their co-workers, while 24% of those at a senior level believe they are underpaid.

The potential outcomes of pay becoming public

Naturally, private discussions among friends and family are more popular than those with colleagues and co-workers. The latter involves significantly more public exposure. The potential outcomes of such a public discussion are cited by many as reasons for and against salary transparency, so it’s worth considering what the potential outcomes might be.

Perhaps a source of concern for employers is that nearly 72% of respondents said they would ask for a raise, lose motivation or even quit their jobs if they learned they were paid relatively less than their co-workers. While quitting is potentially damaging for employers, this demonstrates that employees are willing to take action to get the salary they deserve.

Lastly, fewer than one in five Americans would feel guilty upon learning they were paid relatively more than their co-workers. Notably, more women (21.76%) reported that they would feel guilty compared to men (15.07%).

The benefits of salary transparency

The general consensus, according to our survey results, is that full salary transparency would benefit employees, with around 83% of respondents believing so. However, almost half of all respondents think it would only benefit employees and not employers or the companies themselves.

Almost two-thirds of Americans who responded to our survey believe introducing 100% salary transparency at their company, in particular, would improve pay equality. 45% believe it would lead to higher wages, and 37% think it would improve employee morale. Our data also found that: 

• 43% of respondents said it would result in jealousy. 
• 39% of respondents predicted friction in general as a consequence.

Over four in five respondents said salary transparency would affect their decision to accept a job offer. While it’s a majority across every age group, more respondents in the 60 to 78 age group (around 39%) said it wouldn’t influence their decision, compared to just 11% of those in Generation X.

WHO SHOULD TAKE THE LEAD IN PROMOTING GREATER SALARY TRANSPARENCY?
Employees	28.79%
Employers	57.89%
No one; I don’t think salary transparency is a good idea	13.32%

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What managers think of salary transparency

• 44.98% of respondents said it would be uncomfortable if the people they manage knew how much they earn.
• 51.54% of respondents believe salary transparency helps attract and retain talent.

Only 23% of Americans from our survey know how much their boss earns, but what do managers think of the pay transparency movement? We asked questions specifically to managers, and it revealed that 45% thought it would be uncomfortable if the people they managed knew how much they earned.

However, even among managers, there was a generational divide that superseded the overall seniority of their positions. Over half of the managers surveyed who belong to Generation X or baby boomers thought it would be uncomfortable, but 59.14% of millennials said it wouldn’t be uncomfortable if the people they managed knew how much they made. This number grew to 74.07% for Generation Z managers.

The overall numbers were similar when it came to people they managed knowing about their co-workers’ earnings. 44% believe this level of transparency would bring discomfort. But despite this, more than half of the managers think salary transparency is helpful in attracting and retaining talent.

Sources

1. USA TODAY Blueprint survey. 
2. Rippling – Pay transparency laws: A state-by-state guide [Updated 2024].
3. Insider Intelligence and eMarketer – Gen Z, millennials grow their social media presence through 2027.