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The conversation around pay in the workplace has shifted significantly, with salary transparency becoming a central topic in Australia’s job market. What was once considered off-limits or even taboo is now seen as a step toward building fairness and equity in the workplace.
This isn’t a passing trend. Employers and employees increasingly recognise that open conversations about salary can help address inequalities and create a level playing field for everyone.
The legal landscape in Australia is evolving to support this shift. While unequal pay for equal work has long been illegal, recent legislation pushes for greater transparency.
The Workplace Gender Equality Amendment Bill 2023 marks a significant step forward, requiring private sector companies with 100 or more employees to report their aggregate gender pay gap data to the Workplace Gender Equality Agency (WGEA) starting from 27 February 2024.
This new requirement underscores the growing importance of pay transparency in Australian workplaces and sets the stage for more open conversations about compensation.
Salary transparency refers to the practice of openly sharing information about pay. This can range from listing salary ranges in job ads to providing detailed pay scales across an organisation. It encompasses various levels of openness, from sharing basic salary ranges in job postings to full transparency where all employees' compensation details are accessible internally. This approach represents a significant shift from traditional practices where compensation discussions were often considered taboo.
Against this backdrop of changing attitudes, salary transparency offers several key benefits while working toward crucial workplace goals:
The goal is to ensure that compensation practices are fair and open, helping to eliminate the secrecy that often allows pay disparities to thrive.
Lack of transparency can perpetuate pay gaps based on gender, race, and other factors. Transparency in pay exposes these inequities by bringing compensation details into the open, allowing employers to address them more effectively.
Salary transparency promotes fairness and aligns with broader efforts in advancing diversity, equity, and inclusion, and building trust in the workplace.
The gender pay gap is the difference in average earnings between men and women in the workforce. It is typically expressed as a percentage of men’s earnings and can be influenced by several factors, including occupational segregation, caregiving responsibilities, and educational background.
According to the Australia Talent Trends 2024 Report, many employees have mixed feelings about their employer’s efforts to address pay equity, highlighting the need for ongoing attention.
Some 36% of women are satisfied with their employers’ efforts to close the gender pay gap; 33% are dissatisfied, and 31% feel uninterested. The survey also revealed a significant disparity in DE&I priorities between men and women.
‘Closing the gender pay gap’ was ranked as women’s most important DE&I initiative but only of third priority by men. It’s crucial to understand that the gender pay gap is not a simple matter of unequal pay for equal work, which is illegal in many countries.
The gender pay gap is a complex issue, deeply intertwined with broader structural inequalities in the labour market. These include bias in hiring, promotion, and compensation decisions, and the underrepresentation of women in senior, higher-paying positions.
Promoting salary transparency helps level the playing field by:
Related: Career advice for women from female CEOs
Access to salary information empowers employees, particularly those who have historically been paid less for equivalent work. With knowledge of pay ranges and company compensation strategies, individuals can negotiate more confidently and ensure they receive fair market rates.
This approach benefits employees and helps firms build a more loyal and motivated workforce. Furthermore, transparency fosters a culture of trust and open communication within organisations.
When employees understand how pay decisions are made, they are more likely to feel valued and fairly treated, leading to:
From a recruitment perspective, including salary details in job ads can streamline hiring by helping candidates self-select based on their salary expectations.
While the benefits of salary transparency are clear, implementing it can pose challenges. Concerns about potential conflicts among employees or fears that competitors might use the information to lure talent are common. However, these issues can often be managed with thoughtful strategies.
To successfully adopt salary transparency, organisations should:
It’s also important to remember that transparency is just one part of a broader commitment to equity – it must be supported by inclusive hiring, promotion practices, and ongoing efforts to address workplace biases.
To understand the practical benefits and considerations of implementing salary transparency in job postings, Joshua Wrafter, Business Transformation Change Lead at Michael Page Australia, shares valuable insights into current trends and best practices in salary transparency:
There has been a noticeable uptick in companies including salary or salary ranges in their job ads over the past one to two years. Wrafter notes, “This may be driven by the fact that application rates for job ads are significantly higher when a salary is published.”However, he cautions that it can be a sensitive issue when job advertisements with salaries published are branded with company logos, as current employees might not have access to salary information for all roles within the organisation.
When advertising salary ranges, Wrafter also advises caution: “Beware of advertising a salary range, as often the only number that the candidate remembers is the upper end of that banding! They will refer to that in their salary negotiation process.”
As Australia’s workforce continues evolving and aligning with global standards, the push for pay transparency will likely grow. This shift addresses pay equity and positions companies as progressive and employee-focused, which is increasingly important in today’s competitive job market.
As the landscape of work continues to evolve, we can anticipate several key trends in salary transparency:
AI-driven fairness: The increased use of generative AI and data analytics will play a pivotal role in identifying and addressing pay disparities, ensuring fairer compensation practices.
Transparency as a competitive edge: More companies will recognise the benefits of transparent pay practices as a means to attract and retain top talent, fostering a positive employer brand.
Regulatory push: There is a growing likelihood of stricter legislation mandating greater pay transparency, particularly for larger corporations, reflecting a societal shift towards greater fairness in the workplace.
Embracing salary transparency isn’t just about compliance – it is about fostering trust, fairness, and engagement in your organisation. Here's how both employers and employees can take meaningful steps towards greater pay transparency:
Use resources like Glassdoor and salary guides to understand market rates for your role and experience level.
According to our 2024 Candidate Pulse survey, job applicants in Australia primarily rely on these top three sources for the latest salary information, in order of preference: first, salary reports; second, job advertisements; and third, recruitment agencies.
Related: How to have employee salary discussions during a downturn
Salary transparency is a powerful tool in the quest for workplace equality. By embracing this approach as part of retention strategies, organisations can promote accountability, build trust, and empower employees to advocate for fair pay.
As recruitment professionals, we have a unique opportunity to champion these changes, supporting employers and employees in creating more equitable workplaces.
Explore our job listings and the annual salary guides to stay informed about current salary trends and benchmarks. By fostering transparency in pay information, we can contribute to Australia’s fairer and more inclusive job market.
To get a comprehensive view of salaries and market benchmarks across various industries and roles in Australia, download the full 2024 Salary Guide, which features the average salary of roles in Australia’s dynamic job market, or use our Salary Comparison Tool to see how your compensation compares to industry standards.
Read more:How to structure effective job interviewsHow leaders can gain better engagement with their teamsWorkplace ageism: A top concern despite lower incidence rates in Australia
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