As AI and automation are further integrated into every business, they will undoubtedly reshape critical processes like salary negotiations. The question for job seekers and employees is, “How will this impact my salary expectations?”
Using AI in job applications can have multiple impacts. In this article, we’ll focus on the effects of AI in job applications and how job seekers can regain control of their salary negotiations.
The Reality Behind Salary Negotiations
Negotiating your salary without the use of AI is already a daunting experience. In fact, many candidates don’t negotiate at all. According to Fidelity Investments, 58 percent of applicants immediately accept the first job offer due to the fear of losing the opportunity, lack of industry knowledge, or negative misconceptions about negotiation.¹
However, this can prove to be a costly mistake, leaving employees thinking, “Am I being compensated fairly? Would I have been accepted even if I negotiated?” This is why it’s important to understand the job market and prepare in advance before an interview.
The good news is that 85 percent of the applicants who negotiated their salaries still receive at least a portion of what they asked for. However, as a candidate, you can no longer negotiate salary and benefits past the job offer. So it’s critical to take your chances at the beginning.
Is Artificial Intelligence Your Ally? The Good Side
AI, at the very least, is a tool that elevates human responsibilities. It was never meant to replace our skills. Hence, AI can be considered an ally for both job seekers and employers.
Analyzing Market Trends and Salary Benchmarks
Everyone knows the power of AI in analyzing vast amounts of data far more efficiently than traditional manual processes. Generative AI tools like ChatGPT and Bard can be utilized to evaluate the market, job trends, economy, and location.
Furthermore, platforms like Payscale and Glassdoor can offer updated salary benchmarks. This provides applicants access to updated salary ranges, allowing them to confidently negotiate using data-driven insights.
Job Preparation
Have you ever considered using AI to help you prepare for job interviews? AI has already become a powerful and reliable tool for screening resumes, analyzing job descriptions, and providing recommendations. This can help applicants better align their skills and experiences with the job requirements, allowing them to navigate the applications more effectively.
For example, tools like Jobscan or Rezi can help analyze resumes and job descriptions. It can also suggest resume improvements, giving candidates more chances of passing an ATS screening. At the same time, tools like ChatGPT can help simulate mock interviews, provide feedback, and suggest better responses.
Related Article: The Workforce of Tomorrow: How AI is Redefining Skills and Creating New Career Paths
Is Artificial Intelligence a Disruptor? The Downside
However, now that AI is part of the application process, job hunting becomes unpredictable. Will it make salary negotiations more challenging?
Lack of Room for Negotiation
Salary benchmarking relies heavily on historical data and current market ranges. While this can offer fair compensation, it can also result in rigid salary ranges. This can make it more difficult for applicants to negotiate salary, even if they bring unique skills into the organization.
At the same time, data can be both reliable and unreliable. A single error in salary data can affect AI salary benchmarks, resulting in an unfair compensation range. Instead of offering flexibility, this can negatively impact salary negotiations.
Ethical Implications and Limited Human Discretion
As we develop more technologies, AI and automation will become more capable and reliable in many areas. However, can AI be completely trusted with limited to no human oversight?
Artificial intelligence can only gather information from what is fed to it and can’t evaluate controversial scenarios. If not managed properly, AI can perpetuate biases and discrimination, giving unfair judgment toward specific groups of people.
Reduced Transparency
While many people interact with and utilize AI, not everyone truly understands how it works. Simply using AI tools like ChatGPT can already provide users with much information, including facts and statistics. However, some of its information is often incorrect, which raises the question, “Will it make mistakes in salary benchmarks, too?”
This is why it’s important for employers to fully gain control over their AI-driven systems so they can effectively clarify them to job applicants.
7 Strategies to Back Up Your Salary Negotiation
When you negotiate, you can’t simply say that you found salary information over the internet or highlight your previous achievements. These can be dismissed as overcompensating or untrue.
To succeed in salary negotiations, it’s best to back up your claims and build a strong case. Here’s how:
1. Use data-driven salary research.
This is where you can use AI to your advantage. Visit reputable sources to gain more information about salary benchmarks, or you can use genAI to ask for recommendations.
Make sure to be as specific as you can by narrowing your search using the industry, company size, location, role, trend, and current economy. You can also refer to salary guides created by staffing firms like Madison-Davis to strengthen your case.
2. Showcase your unique value proposition.
Yes, the industry may offer a wide salary range for your position, but you can’t immediately choose the higher range. Instead, you need to highlight your skills, certifications, and accomplishments. Emphasize your ability to go beyond your responsibilities and how you’ve accomplished these in the past. Using values and metrics like percentage increase or revenue in your resume will help demonstrate the impact you bring to the organization.
3. Strategically present competing offers.
If you’re actively looking for a job, there’s a chance you’re waiting for multiple calls. If you already have multiple job offers and are at the final stages of the hiring process with other companies, you can use this as leverage to negotiate for a better package.
However, this method must be done with discretion – it doesn’t work to directly show competing employers the offers you received.
- Your motive must be transparency. Let the company you are talking with know why you are interested in working there despite a lower offer.
- Timing matters! If you present this information, it must be after you’ve received a formal offer, but before discussions are finalized, so the company has the flexibility to adjust their offer.
- Stay professional. You are not simply going to the company with the highest offer; you are highlighting your value and your fit with a particular company. Remember, you may end up working with the company you reject now, so make sure to maintain a good relationship!
4. Align your values with the company’s interests.
Always show your interest in contributing to the overall success of the company. For example, if you notice that the company is venturing into new markets or experimenting with new technologies, you may highlight your experiences and ability to help the company drive forward. Companies look for job fit, and if your goal aligns with theirs, you’re already at an advantage.
5. Look for other opportunities.
Salary is not the only thing you can negotiate. It might be more beneficial to you to ask for other opportunities. For example, if you’re exceptional in closing deals and gaining new clients, you may ask for performance bonuses and commission-based compensation.
Another angle you may consider is to ask for work flexibility or additional vacation leaves. This can be highly valuable if you prefer home-based work, especially if you have a child or a family member to care for.
Lastly, ask for professional development opportunities. Salary and compensation can be valuable today, but continuous development can help you thrive tomorrow. Ask whether the company offers education subsidies or leadership training to boost your career in the future.
6. Ask for additional responsibilities.
Your responsibilities should correspond with your salary. Instead of just asking for a higher salary, understand that a more valuable position also means more responsibilities. Asking for additional responsibilities can help you adjust gradually to new tasks and eventually put you in a position to ask for a higher salary.
7. Be confident and stay professional.
Be prepared for pushback. Job offers are generally within a specific budget and researched by companies. So, remain calm and professional. If you think your work deserves a higher salary, be polite and share your research and knowledge.
If the company can’t accommodate your request, look for other ways to improve your overall compensation through benefits and perks.
Get the compensation your work deserves with Madison-Davis.
Salary negotiations are difficult. That’s why you don’t have to face them alone. When you partner with Madison-Davis, we don’t just recommend you to an employer. We make sure you thrive and succeed in your role, along with having competitive compensation based on expertise and market standards.
Send us a message and be one of our candidates today.
Reference
- Fox, Michelle. “Negotiating a job offer works: 85% of Americans who counteroffered were successful. Here’s how to do it.” CNBC, 13 May 2022, https://www.cnbc.com/2022/05/13/85-percent-of-americans-who-negtiated-a-job-offer-were-successful.html
