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Payroll/Benefits

Study: 64% of U.S. Employees May Leave if Pay Transparency Lags

Remote
Remote
6 months ago
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Study: 64% of U.S. Employees May Leave if Pay Transparency Lags
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Uncovering the views of over 6,200 white-collar professionals, the survey by global HR and payroll leader Remote shows that pay transparency significantly impacts how employees perceive fairness, financial security, and their future with an employer.

The report also reveals stark generational and cultural differences, with younger professionals more open about pay and older employees less likely to voice concerns. Women remain less vocal about salary than men, highlighting the continued need for equity-driven compensation strategies.

Key findings

  • Almost 8 in 10 US employees are satisfied with their current salary, with 88% of 16-24-year olds saying they’re happy with how much they’re paid.
  • However, three quarters (75%) are worried about the financial impact of a static salary, with 28% saying they’d struggle to cover basic necessities without a raise.
  • 7 in 10US employees would feel comfortable asking for a raise, but over a quarter are not confident having pay discussions with their employer.
  • Crucially, almost two thirds (64%)of US employees would consider resigning if they raised pay concerns and these were not addressed by their employer.

Commenting on the report and highlighting the importance of pay transparency, Barbara Matthews, Chief People Officer at Remote, says: “We need to take pay conversations out of the ‘shadows’ and focus on open, ongoing dialogue rooted in transparency and global equity. When done right, pay transparency becomes a powerful driver of a high-performance culture, motivating employees and teams to pursue ambitious goals and deliver outstanding results.”

Pay confidence is high, but workforce stability is fragile

Remote’s study reveals a high level of pay satisfaction among US employees, with 39% saying they’re definitely happy with their current salary and a further 38% saying they’re mostly satisfied.

Pay confidence is highest among younger employees, with 88% of 16-24-year-olds happy with their salary, while men are generally more satisfied with their pay than women: 28% of female employees in the US report feeling dissatisfied with their pay, compared to just 15% of men.

Are you satisfied with your current salary?

Yes, definitely 38.86%
Yes, mostly 38.46%
No, not really 16.78%
No, not at all 5.44%

 

However, while the results reflect a broadly positive sentiment towards pay among the workforce, pay confidence is rarely static. US employers must be mindful of rising inflation and living costs, and how these external factors impact the financial security of their workforce.

More than a quarter (28%) of US employees would struggle to afford essentials such as rent or groceries if their salary remained the same, while a further 25% would need to make significant financial cutbacks. Only around 1 in 8 (13%) could comfortably maintain their lifestyle while still being able to save or invest.

Given the current economic climate, what best describes how an unchanged salary would impact your living standards?

I would struggle to cover basic needs and responsibilities, such as rent, utilities and groceries. 28.32%
I could cover my basic needs and living expenses, but would need to make major cutbacks when budgeting. 24.63%
I could maintain my current lifestyle and still have flexibility for savings and investments. 12.79%
I could maintain my current lifestyle by sticking to a strict budget. 11.19%
My current lifestyle could be comfortably maintained, but I would not be able to increase my savings or investments. 10.49%
I would be able to cover the essentials, but non-essential spending would have to stop completely. 9.64%

 

For employers, this is a warning against complacency. “Feeling fairly paid today doesn’t guarantee that’ll hold tomorrow,” says Barbara Matthews. “Maintaining an open dialogue around compensation is so important because it shows employees their needs and concerns are genuinely being heard.”

Employers must continue encouraging open pay dialogue

Encouragingly, most US employees feel confident discussing pay, with 70% saying they’d be comfortable asking their employer for a raise. However, that still leaves more than a quarter of workers who feel some degree of discomfort when it comes to pay conversations, highlighting the need for openness and transparency from employers.

How comfortable do/would you feel asking for a pay rise in your current workplace?

Very comfortable 37.71%
Somewhat comfortable 32.37%
Not very comfortable 18.43%
Not comfortable at all 9.19%

 

These findings highlight the progress made toward normalizing pay-related conversations about compensation, but also the work still to be done. When employees feel psychologically safe to raise salary concerns without fear of judgment or retribution, employers are more likely to build long-term engagement.

As Barbara Matthews emphasizes, “When people can talk honestly about pay, trust grows and inequities shrink.”

A lack of pay transparency puts trust and talent at risk

Highlighting the importance of employer responsiveness when it comes to pay, almost two thirds (64%) of US employees would consider leaving their role if they raised pay-related concerns with an appropriate party and felt unsatisfied with the response, or lack thereof.

Over a third (34%) of respondents say they’d be very likely to consider resignation, while just 5% would be very unlikely to think about leaving their job.

For employers, this underlines how ignoring pay feedback may come at a reputational and financial cost, with transparent communication and timely salary adjustments critical to maintaining employee trust and retention.

Having raised salary concerns with your employer, how likely would you be to consider leaving your current role if no or unsatisfactory action is taken?

Very likely 34.37%
Likely 29.67%
Neither likely nor unlikely 22.18%
Unlikely 8.94%
Very unlikely 4.85%

 

“Pay conversations in the workplace are often seen as uncomfortable or even inappropriate,” says Barbara Matthews. “But silence only breeds inequity and disengagement. When organizations encourage open, honest discussions about compensation, they set the foundation for a truly transparent pay culture.”

Building a fair, scalable compensation structure

While many employees report feeling comfortable discussing pay, a significant number still view these conversations as off-limits. These findings underscore that pay transparency is a business imperative, and companies that implement open, data-driven pay systems not only promote equity but drive strong engagement and loyalty.

Remote’s tips for creating a transparent pay culture:

  • Design fair, scalable compensation. Build consistent, data-driven pay frameworks that reflect local markets while prioritising equity and transparency.
  • Streamline payroll while staying compliant.Simplify processes so your team can focus on people, not paperwork, while confidently navigating regulations and employment laws.
  • Offer benefits that truly matter. Provide relevant, localised perks and flexible work options that meet genuine employee needs and support their wellbeing.
  • Integrate disparate workflows. Unify payroll, benefits, and compliance systems to deliver a smooth, equitable experience for employees across your workforce.
  • Communicate openly and consistently. Maintain consistent dialogue so employees feel informed, valued, and empowered to engage in conversations about career growth and compensation.
  • Continuously review and benchmark. Regularly evaluate pay and benefits against the market to remain competitive and ensure your employees’ salaries keep pace with rising living costs.

“At Remote, we don’t see transparency as disruptive; we see it as essential, especially in payroll. When payroll is accurate, timely, and clearly communicated, it builds trust. And when employees feel safe asking questions about their pay, you create a culture of accountability on both sides. That’s how you move beyond compliance to real fairness, and a workforce that feels motivated and valued.” — Barbara Matthews, Chief People Officer at Remote

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TAGGED:Employee Fairnessfinancial securityHR newsHR techHR Tech Articleshr tech newsHR technologyHuman Resource Current UpdatesHuman Resource TrendsPay transparencyRemote
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ByRemote
Talent is everywhere — opportunity is not. Remote’s mission is to create opportunity everywhere, empowering employers to find and hire the best talent and enabling individuals to build financial and personal freedom. Businesses around the world use Remote to hire, manage, and pay their globally distributed workforces, simply and compliantly. Remote was founded in 2019 by Job van der Voort and Marcelo Lebre, and is backed by leading investors including SoftBank Vision Fund 2, Accel, Sequoia, Index Ventures, Two Sigma Ventures, General Catalyst, and B Capital.
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