Why Gen Z Won’t Apply for a Job Without Salary Information

What’s the salary? It’s a simple question but it rarely gets a simple answer. If organisations today are not upfront about the salary listed in job advertisements, Gen Z might just pass by. According to a recent Future Workforce Study by Adobe, 85% of upcoming and recent graduates say they’re less likely to apply for a job if the recruiter doesn’t mention the salary range.

Salary transparency has been a hot topic on the work agenda for years, prompting legislative changes across the world. In the UK, the push for transparency is growing, especially as living costs rise and home ownership seems increasingly out of reach.

Our research shows 53% of workers under the age of 25 are concerned their salary isn’t high enough to deal with current inflation rates. So, if a job ad doesn’t mention salary, can we blame them for scrolling on?

But it’s not just about the money. Gen Zs put a lot of effort and consideration into their job searches. They value transparency highly, whether it’s about pay, company ethics, or career progression opportunities. In LinkedIn’s 2022 Workforce Confidence Index, 81% of Gen Z employees favoured full transparency on pay. This generational shift makes sense in the context of the times. The 1960s, 70s, and 80s were much less transparent, and discussions about pay among colleagues were often forbidden. Even now, some firms have contracts designed to stop employees comparing their salaries. In a 2020 study by the Trades Union Congress, 18% of staff in the UK were subject to gagging clauses, but these are difficult to enforce at a time when the gender pay gap is provoking intense scrutiny and calls for full, frank disclosure.

For Gen Z, this is missing the point. This generation doesn’t want to work with any firm perceived as secretive. If an employer isn’t open about money, will it be open about its ethics and career progress opportunities? Employers are uncomfortable with releasing salary information, but it is important they consider the pay band rules and engage in transparent communications about salary from leaders to managers. Ignoring the issue will be costlier. Gen Z are on track to make up 27% of the OECD workforce by 2025. What Gen Z wants is going to stack up like a slow, inescapable tsunami.

A smart company will apply transparency in a holistic way because Gen Z will be looking at the big picture. They aren’t just taking on a job – they’re building their own brand and seeking out employers who mirror their values. Candidates will likely be rummaging through your pay structure, gender equality, mobility opportunities, D&I efforts, sustainability initiatives, equity practices, and SDG commitments. The proliferation of ratings sites with posts from current and ex-employees means an employer’s on-the-ground social and green credentials can be gleaned in moments.

So, no. It’s not about the money. It’s what not mentioning the money says about you.

To take a look at our salary benchmarking, download the latest version of the LHH Salary Guide.