Salary Transparency

The Benefits of Salary Transparency for Employers

The Benefits of Salary Transparency for Employers 

In an environment where salary details are often confidential, Swiss employers may approach the shift toward salary transparency with cautious interest or with a rather conservative approach. However, embracing openness about salary can lead to significant advantages for these employers, such as better company performance, less pay inequality, and improved hiring processes. This article outlines the benefits that Swiss companies can gain from pay transparency and discusses how it can serve as an instrument for fostering a more positive and equitable workplace. 

Did you know that? 

Salary stands as the top priority for jobseekers when seeking new employment. Nearly half (44%) * of the candidates are primarily motivated by the prospect of increased earnings, making it the most cited reason for job changes. Additionally, 43%* of jobseekers restrict their search to job boards that disclose salary information, underscoring the importance of salary transparency in the job market.  

A company may not be able to match the pay scales of its competitors, but it can still attract highly motivated candidates through strong employer branding. A company’s culture, values, and mission can be incredibly influential. Candidates often look for workplaces where they feel aligned with the company’s purpose and where they believe they can grow and contribute meaningfully. Therefore, a robust employer brand that clearly communicates these aspects can be a powerful tool for attracting dedicated and passionate candidates. 

The main benefits when becoming salary  transparent: 

  1. Equality: 

In a time when gender equality and diversity in the workplace are becoming increasingly important, we still see a monthly wage gap of 18% between men and women in Switzerland. Salary transparency is an instrument that can help to give all employees and applicants the same opportunities. It prevents wage differences due to gender, origin, age, or other factors from arising and allows employees to recognize injustices and take actions to reach equality.   

  1. Motivation and Productivity: 

The motivation and productivity of an employee depend on various factors. One factor is the appreciation that is shown by the company. If employees know how their salary is determined and how it compares to similar roles, this can increase appreciation.  

  1. Trust and Loyalty: 

By disclosing salary information, a company demonstrates that it has nothing to hide. It sends a message to employees and job seekers that openness and honesty are particularly important. This strengthens the trust of the employees, promotes loyalty to the company, and can lead to them being more willing to stay in the company in the long term.  

  1. Attracting Talents: 

Job seekers, especially Generation Z, want to know what salary they can expect before the application process. Around 70% of employees in Switzerland state that salary is the most important criterion for them when choosing a job. With a transparent salary indication, you attract the right talents and save yourself time and effort in recruitment.  


In summary, it can be said that salary transparency offers many advantages, but it does not come without challenges. It requires careful planning and implementation to ensure that it is effective and fair. It is a long but very rewarding journey that requires the commitment of the entire company. A step in the right direction for a fairer and more inclusive work environment. 

*Sources: JobCloud Internal Data