Employees Turning to AI and Social Media for Pay Information
New data reveals a growing trend: employees are increasingly relying on generative AI tools and social media for salary insights. This shift is creating challenges for HR professionals as misinformation about pay expectations spreads.
Growing Use of AI and Online Sources for Salary Data
A recent report from Payscale surveyed 1,000 US employees and 500 business leaders involved in compensation decisions. The findings showed that 70% of employers observed a rise in employees using AI platforms like ChatGPT to gather salary information. Alongside this, 72% of employers noted more staff referencing online sources during salary negotiations.
Unfortunately, this has led to a significant amount of conflicting or inaccurate pay data circulating among employees. More than a third of employers (35%) reported that employees receive mixed messages about their pay, while 38% said salary expectations have risen beyond reasonable levels.
Sources of Pay Information
Employees are pulling salary data from various channels:
- Social media platforms – 19%
- Search engines – 26%
- Similar job postings – 36%
Ruth Thomas, chief compensation strategist at Payscale, pointed out that while traditional sources like family, friends, and salary guides remain important, AI and social media are influencing pay expectations without providing verified data or proper role context.
The Impact of Pay Misinformation
Confusion over compensation has real consequences. The report highlights that 66% of employees have considered leaving their job after an unsatisfactory salary discussion. Employers reflect this trend, with 48% reporting increased turnover tied to pay conflicts over the past year.
Addressing the Pay Confidence Gap
One key issue is a lack of transparent communication about pay. Although 93% of employers believe their employees trust their compensation decisions, only 69% of employees actually do. Additionally, 41% of employees have never had a clear conversation about how their pay is determined.
Thomas emphasized the need for employers to build compensation strategies based on transparency and clear communication backed by data. This approach can help bridge the trust gap and align employee expectations with pay realities.
These findings arrive as pay transparency laws gain momentum internationally, including new legislation in the European Union that encourages open salary discussions.
For HR professionals seeking to better equip themselves with AI tools and strategies to manage compensation conversations, exploring dedicated AI training resources can be valuable. Learn more about relevant courses and certifications at Complete AI Training.
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