As the use of AI in the workplace increases, employees are turning to artificial intelligence as a tool for salary research, according to a recent report from Payscale.
The report, based on a survey of 1,000 U.S. workers and 500 business leaders and HR professionals, found that 70% of employers believe that more employees are turning to information from AI tools like ChatGPT when negotiating salaries.
Jessica Pillow, global head of Total Rewards at HR platform Deel, says the question of whether to use AI for payroll information comes up “all the time” in her work.
In fact, she tried it herself. According to Pillow, when he was first introduced to ChatGPT, the first prompt he entered was asking for the typical salary of someone in his industry.
“Everyone is doing this,” she says.
In many cases, Pillow said, AI can be a tool to help job seekers, especially those early in their careers, determine a “starting point” for salary in their field.
But she says experts shouldn’t assume AI-generated salary information is the “absolute truth,” at least without thoroughly fact-checking the results.
A PayScale report found that this year, 63% of employers have seen an increase in employees making pay requests based on inaccurate or unverified data.
Using incorrect salary information can leave employees disappointed, as their expectations “don’t actually match the reality of the company,” Pillow says.
Accuracy maintained by AI
Pillow says the biggest mistake people make when using AI to obtain payroll information is using overly general prompts.
“If your prompts aren’t very specific, whether you’re thinking about a location, company, size, or specific industry, you might get answers that aren’t grounded in reality,” she says.
Pillow says strong prompts include information about the location and size of the company, the level of experience required, and potential benefits and bonuses.
For example, instead of a simple question like “How much does a data analyst make?”, Pillow recommends more detailed prompts like:
What is the median salary range for a Data Analyst in the Marketing Department in New York City at a private advertising agency with 100 employees?This role requires 5 years of experience. Include a summary of typical forms of variable compensation, its targets, and ancillary items such as equity.
It’s important to keep in mind that “companies approach compensation very differently,” Pillow says. For example, a role based in Silicon Valley can have a very different salary than a similar role in a rural area.
Even the most airtight AI prompts don’t guarantee accurate information, so Pillow recommends cross-referencing your results with career websites like Glassdoor and LinkedIn.
“That’s not the final answer,” she says. “You still have to do your homework.”
On the bright side, Pillow says the use of AI could be a boon for employees who are intimidated by salary negotiations. AI could help “be less nervous and more prepared during negotiations, and appear more thoughtful and informed.”
“The more you think about it, the easier the conversation will be when you talk to recruiters and recruiters,” Pillow continues.
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