According to a 2024 report from Aon, the top driver of pay transparency practices in Asia is “regulation and compliance” (72%).
Hengmeng | Electronic+ | Getty Images
Pay transparency is a growing concern as organizations adapt to new regulations, but one part of the world is still playing catch-up, as openly discussing pay remains taboo.
A 2024 report said “pay transparency and disclosure requirements in Asia are still evolving compared with the United States and some European markets” Report Provided by management consultancy Aon.
The report, which surveyed more than 350 HR professionals across Asia, found that while about 80% of organizations surveyed in Asia believe pay transparency is important, “most Asian markets do not have specific pay equity and transparency guidelines.”
Peter Zhang, head of talent solutions for Aon Asia Pacific, told CNBC Make: “In many Asian companies, employees are often reluctant to share salary information with colleagues. This practice is often listed in the employment contract or is viewed as It's an unspoken rule.
“This may be attributed to cultural norms and limitations in the maturity of compensation practices and processes,” he said. “In addition, Asian economies and labor markets are more dynamic and volatile. Employers tend to pay premiums to selected talent groups to gain a competitive advantage.”
Another obstacle is the region's lack of “management maturity” and “skills in handling sensitive pay conversations,” Zhang said.
And a place like this california and New York The majority of Asian companies (84%) limit pay transparency to internal stakeholders due to legal requirements for companies to share salary ranges on job postings.
According to the report, the top driver of pay transparency practices in Asia is currently “regulation and compliance” (72%). But rather than waiting for new legislation, some Gen Z and Millennials in Asia are taking the lead in driving online change.
Young people lead the movement
Young people around the world have taken to social media to talk about their income.
Residing in Singapore Karishma JashaniThe 28-year-old has racked up millions of views on TikTok by discussing her career, including how much she earns from her job in technology sales.
Last year, she revealed Earn over S$300,000 (approximately $223,000) and received approximately 500,000 views on TikTok.
“I think the whole goal of what I share is to empower people,” Jashani told CNBC Make It. “I'm not trying to shut down – like only certain people can live like this… No, the reality is anyone can do it.”
Jashani is just one of many young people in Asia working to increase pay transparency in the region. Prestine Davekhaw is on a similar mission.
In 2022, at the age of 32, he founded malaysia salary gapis a brand with over 300,000 followers on Instagram and TikTok, known for its street interviews asking people how much money they make.
As a freelance photographer, Dave Ho said it's difficult to price her services when others in the industry are so cautious about their prices. So she started crowdsourcing and sharing information on social media.
“I actually started on Instagram, and within a week we were going viral in Malaysia…and then I realized there were a lot of industries that needed this,” she said.
Through these street interviews, she uncovered major generational differences in career and financial knowledge and attitudes. Dave Hoe said younger people were more open to sharing their salaries, while older generations were more cautious.
“They think (they) have to be humble, (they) have to keep a low profile, otherwise they're afraid they'll be invited to speak by the company's human resources department,” she said.
She also noticed cultural differences in pay.
“When we did street interviews in Malaysia, when we approached the Malays, they were very willing to talk about this issue, but it was more difficult to approach the Chinese,” she said. “For Chinese people, from the time we were young, there's been a lot of teaching that you shouldn't 'show off your gold'… so everyone is very conservative.”
I think our role in advocating for pay transparency really comes through dialogue.
Prestin Davehoe
malaysia salary gap
Dave Ho also said there was a knowledge gap around speaking up at work.
“The difference is very noticeable,” she said. “It definitely depends on your social class, your family background and where you got your education, because we (see) people who graduate from top universities know they should be negotiating,” she said, while others may be Teach “gratitude” and maintain the status quo.
“I think our role in advocating for pay transparency really comes through dialogue,” she said. “If talking about pay transparency is a taboo, then that taboo is a cultural phenomenon … and that means we have the power to shape a different culture that removes that taboo.”
Dave Ho concluded that people are going to talk anyway, so it was only a matter of time before Asian organizations recognized this fact.
“It's up to the human resources (department) to retain their employees,” she said.
HR perspective
Aon's Zhang said poor pay transparency not only leads to inequality but also creates risks for companies.
Embracing transparency is critical to promoting fairness in the workplace, instilling confidence in potential candidates, enhancing the employee value proposition, and enhancing your employer brand.
Peter Zhang
Head of Talent Solutions, Aon Asia Pacific
“When an organization lacks structured compensation processes and practices, large gaps related to pay equity are exposed when employees openly discuss pay,” Zhang said. “Not only does this lead to employee dissatisfaction, it also exposes the organization to Legal and Reputational Risks.”
“Embracing transparency is critical to promoting fairness in the workplace, instilling confidence in potential candidates, enhancing the employee value proposition and strengthening the employer brand,” he said.
However, preparation is key. From establishing clear processes and prioritizing pay equity to training employees and managers on how to handle pay discussions, organizations must do the legwork to get pay transparency right.
“We expect significant shifts are coming as organizations strengthen their compensation practices, work towards pay equity and develop management capabilities,” he said.
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