Although talk about salary remains sensitive in the workplace, employees are in favour of increased transparency surrounding salaries.

A recent study conducted by jobs.lu on this topic found that 60% of Luxembourg employees would like to know how much their colleagues are earning, while 72% would be willing to have their colleagues know their own salary level.

Only one in five employees stated that their colleagues know how much they actually earn.

Luxembourg, April 19, 2022 – Who among your colleagues knows your salary level? How is the topic of salary broached among colleagues?  These were some of the questions that jobs.lu asked a representative sample of Luxembourg employees as a part of a study focusing on salary-related issues, conducted in February.

As we reported in a previous release, the study found that the topic of salary still remains difficult for many to bring up at the company level. 62% of the surveyed employees stated that they did not feel comfortable when asking for a pay rise, while nearly four in ten have never dared to do so.

60% workers would like to know how much their colleagues are being paid

The surveyed employees were asked about their perception of their salary and their willingness to discuss it openly.

The study shows that almost 60% of employees would like to know how much their colleagues are being paid. Nearly three in four employees (72.14%) would not mind their colleagues knowing their salary level.

“According to 69% of the surveyed workers, employees with a similar role would like to be able to compare their respective salary levels,” says Arthur Meulman, CEO of jobs.lu. “Although salary grades have been considered to be a sensitive and confidential topic for a long time, the perceptions surrounding the topic are changing. Employees would like more transparency regarding salary-related matters, so as to be able to better position themselves within the company as well as in terms of the labour market at large.”

Salary level disclosed only to a small circle

However, the study shows that an employee’s salary is currently shared only with a small circle of people close to them:

• One in two employees (55%) say that their spouse is aware of their salary.
• One in three employees (33.7%) say their parents know how much they earn
• One in four (25.6%) share their salary level with their friends.
• Only 15% of respondents say that they share their salary with anyone who asks them about it.

“The study revealed that only one in five employees (18%) say that their colleagues know how much they earn,” explains Arthur Meulman. “It is evident that significant measures are required on a company-wide level with regards to salary transparency. Although salary is a sensitive topic, it seems more important than ever before to be able to discuss it more openly in a tight labour market, in order to guarantee employee satisfaction.”

Salary remains a sensitive topic for 1 in 4 workers

The survey found the following reasons as to why 28% of employees would not like to disclose their salary to their colleagues:

• One in two (56%) consider salary to be private information
• One in two (49%) believe that salary transparency leads to workplace disputes or feelings of envy
• One in three (34%) do not wish to be judged on the basis of their salary

“Although the findings of this study show that there is a genuine need for more transparency, salary remains a sensitive topic for a significant number of employees,” explains Arthur Meulman. “In this context, a robust, well-formulated pay policy that the company could communicate with all its employees would serve as an essential tool to make it easier to discuss salary matters and to guarantee employee satisfaction.”

Methodology

As a part of its survey, jobs.lu sent a questionnaire to a representative sample of Luxembourg-based employees, focusing on the employees’ level of satisfaction with their salary and their perception of salary-related matters.

The questionnaire, available in English and French, was completed by 1,241 participants between the last week of February and the first week of March. The survey data shows the employees’ level of satisfaction with their salary, as well as their perception of salary-related matters on a company-wide basis or in terms of the labour market. Our analysts examined the study’s findings carefully to ensure that the survey participants’ responses were accurately represented and validated.