New report explores salary equity and transparency gaps amidst 2025 pay transparency laws.
GUAYNABO, Puerto Rico, Feb. 26, 2025 /PRNewswire-PRWeb/ -- Zety®, a career service dedicated to helping people improve their resumes and cover letters, has released the findings of its Pay Gaps and Perceptions Report. The data reveals that 32% of workers feel they are underpaid compared to peers in similar roles and industries.
As new pay transparency laws take effect across several states in 2025, Zety's survey of roughly 1,000 U.S. employees sheds light on the ongoing challenges surrounding pay equity, merit-based compensation, and workplace trust.
Key Findings:
- Only 55% of employees feel very confident that their salary is based on merit and performance rather than gender or other biases.
- 9 in 10 (89%) say knowing salary ranges for roles in their organization would improve their trust in leadership.
- 88% are open to discussing salary with coworkers or peers, and 55% say these conversations have helped clarify fairness or inequities.
- 77% say dissatisfaction with their salary has negatively impacted their productivity or engagement at work.
- 67% believe men are more likely to negotiate salary than women.
High Demand for Salary Transparency
Pay transparency has emerged as a critical factor in employee trust and satisfaction, with workers calling for greater clarity on compensation practices.
- Only 55% feel very confident that their salary is based on merit and performance rather than gender or other biases.
- Just 37% say salary or pay equity concerns are regularly discussed in their workplace.
- 9 in 10 (89%) say knowing salary ranges for roles in their organization would improve their trust in leadership.
- 88% are open to discussing salary with coworkers or peers, and 55% say these conversations have helped clarify fairness or inequities.
Pay Perceptions and Productivity Impact
Many employees feel their pay doesn't match their worth, affecting their motivation and performance.
- 32% believe they are underpaid compared to peers in similar roles and industries.
- 37% frequently compare their salary to others in their workplace or industry, while 51% do so occasionally.
- 77% say dissatisfaction with their salary has negatively impacted their productivity or engagement at work.
Salary Negotiation: Confidence vs. Success Gap
While 91% of employees feel confident in negotiating salaries or raises, success rates tell a different story.
- 94% say they negotiated their starting salary at their current or most recent job, yet only 66% report being very successful in their negotiations.
- An additional 31% were somewhat successful in negotiating their salary.
- 67% believe men are more likely to negotiate salary than women.
Top Reasons Employees Negotiate Salaries
Employees are driven by a desire for fair compensation and market competitiveness.
- 54% believed their initial salary offer was below market value.
- 30% had research or data on salary benchmarks for the role.
- 13% wanted to improve their overall compensation package, including benefits.
- 3% were aware that others in similar roles earned more.
Most Effective Salary Negotiation Resources
70% of workers used resources to prepare for salary negotiations, with some of the most popular being:
- 38% - reviewing company salary bands or job postings.
- 37% - researching market rates.
- 34% - using online salary calculators such as Glassdoor and Payscale.
"Employees overwhelmingly support salary transparency, not just as a fairness issue but as a fundamental trust factor," said Jasmine Escalera, career expert at Zety. "When workers understand how pay decisions are made and see clear, equitable policies in place, it strengthens engagement, motivation, and retention—benefiting both employees and employers alike."
For detailed insights on the Pay Gaps and Perceptions Report, access the full study at zety.com/blog/pay-gaps-perceptions-report or contact Skyler Acevedo, at [email protected].
Methodology
The findings presented were obtained by surveying 995 U.S. employees on February 5, 2025. Participants were queried about their experiences with pay gaps, salary transparency and negotiation, responding to various question types, including yes/no questions, scale-based questions gauging agreement levels, and questions that permitted the selection of multiple options from a list of answers.
About Zety
Zety is the leading career website providing the ultimate career toolbox to help everyone find their dream job. Fueled by the best career experts and a community of millions of readers, Zety shares a range of innovative resume templates, expert advice, and resources to empower job seekers at every stage of their career journey. Launched in 2016, Zety has helped millions of job seekers across the globe find employment. With a rapidly growing community of more than 40 million readers, Zety is regarded as "the best online resume builder" on the market and has been featured in Fast Company, CNBC and Forbes, among many others. Follow Zety on Facebook, LinkedIn, and X to stay connected and receive the latest updates.
Media Contact
Skyler Acevedo, Zety, 3472927178, [email protected], zety.com
SOURCE Zety
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