Gen Zs Are Sharing Their Pay With Colleagues. Should You Do the Same?

In Singapore, discussing our pay or salary information with our colleagues is still considered taboo.

Some of us cite fears of colleagues becoming jealous if we have higher pay,

Or being disgruntled when we don’t make as much as our peers do.

Despite that, young millennials and Gen Zs in the U.S. are shaking things up at the workplace when it comes to pay transparency.

According to a survey by Bankrate, 42% of Gen Z workers, ages 18 to 25, and 40% of millennial employees, ages 26 to 41, have shared their salary information with a colleague or a professional contact.

These findings are based in the U.S. Figures are expected to be lower for a conservative country like Singapore.

Why is that?

Read on to find out!

Is Discussing Salary Illegal in Singapore?

Before we explore why pay transparency is gaining so much traction among younger workers, let’s address the elephant in the room: the legality of salary discussions.

Discussing our salaries has become such a touchy topic that some of us have the impression that it is illegal in Singapore.

To be clear, there are no laws stating that the discussion of salaries is illegal.

Why Is Pay Transparency Such a Taboo?

Although it is perfectly okay to share about your pay legally, the general consensus is that there is a fear of resentment and awkwardness when one shares their salaries.

People believe that by doing so, colleagues may get jealous of them, which leads to strained work relationships.

Others are also afraid that they may seem boastful if they command higher pay.

Not Sharing Salary Information Only Benefits Employers

However, did you know that keeping your salary secret only benefits employers?

With salary information only available to your bosses, you’ll be at a disadvantage when it comes to pay negotiations.

Since you don’t know what the true market rate is like for the role that you’re applying for, it is easy for companies to lowball your pay.

On a larger scale, keeping salaries a secret allows companies to keep wages down.

This concept is called informational asymmetry and plays a huge part in issues such as the gender wage gap.

Why Some Companies Do Not Share Salary Information

That said, it doesn’t mean that all companies are out to cheat us.

According to NodeFlair, one of Singapore’s biggest tech compensation aggregators with over 1,400 verified salary submissions, companies are afraid that being transparent about salary information means that competitors can use it as a gauge to poach potential or current employees.

Another interesting insight is that as a role becomes more senior, it is more likely that it does not include salary details.

Aside from base pay, compensation packages at more senior levels may also include a large mix of non-cash components such as Restricted Stock Units (RSU) or Employer Stock Options (ESOP), which are often not reflected in salary guides.

Benefits of Sharing Your Salary Information/Pay Transparency

With more pay transparency, employees stand to benefit as they can demand better and equal pay.

Moreover, pay transparency has already proven well for those in the public sector as it helps eliminate discrimination.

Employers also stand to benefit as pay transparency may make employees more productive and collaborative.

Gathering Salary Information from Your Colleagues or Professional Contacts

This has led to the advent of salary guides and job sites such as Glassdoor where employees can disclose their salaries anonymously.

If we were to take it a step further, the most accurate way would be to ask your colleagues who are in a similar role as you.

That said, gathering such information needs to be done tactfully and with people that you trust.

Do also note that this is not an apples to apples comparison as the situation can be very different depending on the company and industry you are in.

Should You be Discussing Pay With Your Colleagues?

It really depends on your situation.

Knowing how much you are worth is a very useful tool when it comes to your career.

And in the case that you are underpaid when compared to your peers, you will then have the necessary information as a backup to ask for a pay raise.

It all boils down to knowing your worth in the company and finding out if you are being paid fairly for your contributions.

After all, knowledge is power.

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