Those millennials are at it again, changing yet another aspect of workplace culture. This time, according to a recent article in the Wall Street Journal, it’s all about pay transparency.
According to the article, “roughly a third of U.S. workers ages 18 to 36 say they feel comfortable discussing pay with their co-workers.”
This brings some new challenges to employers since, traditionally, employees were reluctant to talk about pay, particularly with co-workers. Employers will need to think about how evolving norms should impact decisions about compensation. Employers that lack clear guidelines around salary decisions could come under pressure to clearly explain why, for example, two employees who perform similar work are paid different amounts.
But employers should also see the change as an opportunity. Employers who understand more about their pay and benefits are more engaged employees.