Lack of Salary Transparency is Costing Businesses Top Talent, Says Recruiters
As end-of-financial-year reviews approach, new research reveals a growing disconnect between Australian employers and employees on the issue of salary transparency, raising questions about trust, workplace culture, and the future of recruitment.
According to a new report from global recruitment firm Robert Walters, only 5% of employees feel comfortable discussing their salary with colleagues, despite 37% of employers claiming to support open conversations about pay. The findings highlight a gap between organisational rhetoric and the lived experiences of staff.
“The issue is cultural,” said Dan Rogers, Managing Director of Robert Walters Australia. “A transparent team culture promotes fairness, equity, and consistency. But without it, workplaces risk becoming environments where resentment festers and context is lost.”
Employers Missing Out by Omitting Salaries in Job Ads
The research also points to a major disconnect in recruitment practices. Despite data from SEEK showing that job ads listing salary details attract 47% more applicants, around two-thirds of Australian job postings still exclude this information.
Rogers warns this could be a costly oversight, especially in a tight labour market. “Candidates are increasingly selective. By withholding pay information, companies risk deterring highly skilled applicants and damaging their own hiring efforts,” he said.
However, he acknowledged the challenge, noting that salary structures in certain industries, such as professional services and sales, can vary widely based on experience, incentives, or client portfolios—making standardisation complex.
Gen Z Leading the Push for Openness
The report also underscores a generational shift in attitudes toward pay transparency. Gen Z employees - those born after 1996 - are the most likely to discuss their salaries, with 34% saying they do so openly. That compares to just 21% of millennials and 16% of Gen X.
“Younger professionals view salary secrecy as outdated,” Rogers said. “They want clarity and accountability. Organisations that fail to keep pace with these expectations risk losing relevance among the next generation of talent.”
Salary transparency, for Gen Z, is about more than just numbers, it reflects broader values around fairness, equity, and social responsibility. Employers who sidestep these expectations may find themselves struggling to build trust with younger staff.
EOFY Reviews: A Chance to Reset
As cost-of-living pressures continue to bite and employee expectations rise, the end of the financial year presents a strategic opportunity for businesses to address pay equity head-on.
Robert Walters is urging employers to conduct structured, data-driven salary reviews as part of their performance evaluations, helping to ensure compensation remains fair and competitive.
“Transparency isn’t just a buzzword, it’s a business imperative,” Rogers concluded. “Companies that get ahead of the curve will not only attract top talent but also build workplaces defined by trust and integrity.”
With the recruitment landscape shifting and younger workers demanding more accountability, the message is clear: salary transparency could be the key to retaining talent in the modern Australian workplace. But many employers still have work to do.
