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Published by Loriga & Associati at 2 December 2024
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More and more companies are making salary ranges transparent for new candidates.

They are also becoming much more specific about the responsibilities and skills that each role entails.

And they are doing so to comply with the transparency rules that, both in the United States and in Europe, will begin to come into force from 2025/2026.

What they’re not doing so well, experts say, is preparing for a potential avalanche of questions and disputes once everyone knows how much everyone else earns.

For the first time, many workers will see how much their bosses are willing to pay for roles similar to theirs, and that could raise a lot of questions.

In the EU, where new transparency rules will come into effect in early 2026, pay, whether desired or expected, is at the forefront of many people’s minds.

Furthermore, it is evident that the new generations have fewer scruples, compared to their parents, in talking about remuneration and in sharing the related data.

Older generations have long considered these discussions taboo. But Gen Z and many young Millennials have shown a greater willingness to raise concerns about perceived fairness, also taking a major step toward greater equity in the labor market.

It remains unclear, for now, how much companies are preparing to face a process that is new to them and potentially a harbinger of internal tensions, however, little or no preparation will not be able to interrupt a trend that is now clearly underway.

 

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