Generative AI has triggered a new kind of technological shift, one that is significantly reshaping the content of jobs and work processes, especially for highly educated professionals.
“So far, AI hasn’t had a measurable effect on employment or income across occupations. In many organizations, its use is still experimental. But going forward, AI will change job roles and work processes, and that will directly shape what kind of skills are needed,” says Antti Kauhanen, professor of practice in economics at Aalto University School of Business.
Kauhanen leads research on working life at ETLA Economic Research, a non-profit economic research institute. His recent research has focused especially on how generative AI is changing work, as well as broader shifts in the labor market.
“Beyond AI, the rise of remote work is also reshaping working life, and we don’t yet fully understand all its effects. One big question is: if so many people work remotely, how do those just starting their careers learn on the job? Organizations need to take this seriously.”
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| According to Kauhanen, it's worth looking at your own value from three angles: professional expertise, the ability to use technology and data, and social skills. |
In salary negotiations, focus on creating value through a three-part approach
What skills does the labor market need, and which ones are employers actually willing to pay for? Kauhanen emphasizes that professionals should build their value along three tracks: continuously deepening their professional expertise, getting better at using technology and data, and strengthening their communication, collaboration, and leadership skills.
It’s worth investing in your skills continuously, for example, through targeted, modular training. But gaining new education or skills isn’t, by itself, a strong argument in a salary negotiation.
"You need to be able to explain how that training has improved your productivity and created value for the organization."
“You need to be able to explain how that training has improved your productivity and created value for the organization. What matters most is the combination of skills you bring. If you have strong professional expertise and have also learned to use new technologies and analyze data, you’re in a good position,” Kauhanen continues.
The importance of communication, collaboration, and leadership skills will only grow in the future.
“These are the areas where humans still outperform technology: persuasion, selling, negotiation, resolving disagreements, building trust, and public speaking,” Kauhanen explains.
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| Kauhanen points out that the annual performance review isn't the only time to negotiate salary. A strengthening economy offers a good opportunity to evaluate your pay. |
Time your salary negotiation well and prepare thoroughly
The annual performance review is a natural time to bring up salary, but it’s far from the only one. It’s worth raising the topic whenever your responsibilities change, or if your own research suggests your pay is out of line with comparable roles or companies.
Salary negotiations are also closely tied to the state of the economy. Now that there are signs of economic recovery, it’s a good time to raise the subject with more confidence.
“You should be able to demonstrate your added value, for instance, by showing how you’ve used AI to automate tasks and shift toward higher-value work. Proving your worth tends to be easier in sales roles than in many expert positions,” Kauhanen adds.
"Changing jobs is always a genuine opportunity to renegotiate your salary from scratch."
The Pay Transparency Directive encourages open conversations
It’s both possible and worthwhile to talk about pay more openly than before. Under the upcoming EU Pay Transparency Directive, organizations will no longer be allowed to have unjustified pay gaps.
“That said, it doesn’t make sense to compare your pay to your manager’s, since the roles are usually very different,” Kauhanen notes.
Is switching jobs the only way to get a real raise? Kauhanen acknowledges that research shows earnings tend to grow faster for people who change jobs than for those who stay in the same role and organization.
“Changing jobs is always a genuine opportunity to renegotiate your salary from scratch. It’s worth trying to negotiate a raise, but not everyone will automatically improve their pay by switching jobs. It’s also always worth asking the hiring manager about the salary range.”
