"Must Pay at Least 73 Million Won to Join"... Generation Z Avoids Job Listings Without 'Annual Salary' [World is Z Gold]

Generation Z Wants Salary Transparency
Burden of Living Expenses and Changing Attitudes Toward Work
"Rising Demand for Salary Transparency Amid Inflationary Pressures"

Editor's NoteGeneration Z (those born from the late 1990s to the early 2010s) is gaining attention as a generation that leads culture and trends in a rapidly changing era, setting new standards across society. In [The World is Z Gold], we aim to shed light on the lives and values of Generation Z worldwide and explore how they are transforming society.

The number of Generation Z individuals avoiding job postings without specified salaries is increasing. Photo by Getty Images Bank

In the United States, a clear trend is emerging where Generation Z job seekers avoid job postings that do not disclose salary information. Older generations were accustomed to gradually increasing their pay after joining a company based on their performance. However, Generation Z prefers to confirm clear salary details from the outset before applying. This shift is influenced by the high cost of living and changing views on work.

According to a recent survey conducted by the academic support platform EduBirdie among 2,000 Generation Z individuals in the U.S., 58% of Generation Z respondents said they would not apply to job postings without disclosed salaries. Additionally, 71% believed that salaries should be transparently disclosed in the workplace.

The reason Generation Z values salary transparency stems from economic insecurity. Facing high living expenses and student loan burdens, Generation Z tends to want to verify in advance whether the salary they will receive is sufficient to sustain their livelihood. In a previous survey, 58% of Generation Z respondents said that an annual salary between $50,000 (approximately 73 million KRW) and $100,000 (approximately 150 million KRW) would allow them to maintain a stable living. This is similar to the average annual salary of Americans, which is $67,000 (approximately 97.75 million KRW).

Avery Morgan, HR manager at EduBirdie, stated, "Many Generation Z individuals receive support from their parents, but rather than expecting to meet a wealthy spouse or inherit from their parents, they aim to earn a high income themselves." In other words, unlike in the past when wealth was accumulated through inheritance or marriage, Generation Z actively manages their careers and pursues high salaries.

Moreover, the changed work values of Generation Z also play a role. Generation Z tends to view jobs more as a means of livelihood than previous generations. While Millennials considered both self-realization and economic stability when choosing jobs, Generation Z distinctly prioritizes economic benefits above all else. Professor Alex Bene of the University of Tennessee told the news weekly Newsweek, "Generation Z tends to link personal and professional happiness directly to salary," adding, "They value earning money through work and using that money to obtain desired products and experiences more than deriving satisfaction from the work itself."

He also explained that companies not disclosing salaries in job postings is not due to malicious intent. Rather, they keep the information private to consider salary comparisons with existing employees or differences with competitors. Professor Bene pointed out, "As Generation Z's share in the labor market grows, companies need to reconsider their stance on salary disclosure," adding, "With ongoing inflationary pressures, more workers are demanding salary transparency."

Recently, salary disclosure has become common in the global market. New York City in the U.S. has enforced the 'Salary Transparency Law' since 2022. This law requires companies to specify the minimum and maximum wages in job postings. It applies to most companies in New York City except for workplaces with fewer than four employees or temporary staffing agencies hiring temporary workers. Additionally, the UK has mandated since 2017 that large companies with 250 or more employees disclose average hourly wages and median wages annually.

In contrast, in South Korea, there is no legal obligation for companies to disclose salaries when posting job openings. Although the 'Employment Procedure Act' exists to ensure fairness in hiring processes, it does not include regulations on disclosing wages or working conditions. As a result, most companies indicate salary items in job postings as 'according to company regulations' or 'to be decided after consultation.' Ultimately, job seekers have no choice but to estimate salary levels through job platforms or company reputation sites.

HR consultant Brian Driscoll said, "If the workload exceeds the salary level, applicants have the right to know this in advance and make their choice." He added, "Companies want the best talent but expect applicants to apply without knowing the salary," warning, "As the labor market changes, companies that do not adapt will eventually lose Generation Z talent."