Even AI tools like ChatGPT think your employees should be making more money
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Even AI tools like ChatGPT think your employees should be making more money

July 29, 2025
02:28 PM
3 min read
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Payscale found a growing gap between employer and employee salary expectations, and GenAI tools are contributing to a new norm.

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3 min read

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personal finance

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July 29, 2025

02:28 PM

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Fortune

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moneyfinancialtechhealthcaremarket cyclesseasonal analysismarket

What the data shows is AI·salariesEven AI tools ChatGPT think your employees should be making more moneyBy Adam DeRoseBy HR BrewBy Adam DeRoseBy HR Brew Nearly one in five employees turn to a chatbot for salary insights

Getty Images—Laurence DuttonChatGPT might be a new stakeholder in your salary discussions, according to new re from compensation software company Payscale, which surveyed 1,000 employees and 500 leaders working in compensation, given the current landscape

Payscale found a growing gap between employer and employee salary expectations, and generative AI tools are contributing to the new norm

Moreover, Moreover, Eighteen percent of employees are sourcing salary information from AI assistants ChatGPT

Additionally, Of those nearly one in five employees turning to a chatbot for insights, 27% say it’s “inflated their expectations” and 38% of employers agree that these tools yield higher salary demands, according to the report

However, “I think the fundamental issue is that they’re [employers and employees] looking at the same object through two different lenses,” said Ron Seifert, senior client partner at Korn Ferry

Nevertheless, “Employees get anecdotal information, and employers have real data, both internal practices and references as well as external market data

In contrast, ” Employers are also armed with insights on how the company apaches pay with other people performing the same job, employee performance data and an employer view of an employee’s potential, and compensation survey data

On the other hand, But employees may consult ChatGPT, social media, and websites Glassdoor or others

Conversely, Younger employees are also more open with their salary information than older colleagues, and word-of-mouth insights may also impact their impression of comp, in this volatile climate

This dissonance has become a recipe for a growing confidence gap, the study found

Furthermore, While 93% of employers “believe their employees trust their pay decisions,” only 69% of employees say they trust their employer’s thinking

What’s HR to do (remarkable data) (an important development)

Additionally, “Acknowledge it and be sufficiently empathetic is bably the most important thing,” Seifert said (which is quite significant)

In contrast, “You want to not be defensive and then the perspective of how we reach our answers as employers on pay decision making, and then just present that in a fairly dispassionate way (noteworthy indeed), in this volatile climate. ” Seifert told HR Brew it’s safe to assume employees are coming to a comp discussion armed with information, and some of that is bably misinformation

Be ready to receive bloated asks and prepared to explain the work that went into the company’s offer, he suggested (quite telling)

Moreover, On the other hand, “An employee discussion isn’t going to change an employer’s mind their practices,” he said

Seifert added that, in these conversations, it’s also useful to assess an employee’s motivation for the discussion: Is there another job offer, or is there a personal financial issue, in today's market environment

These types of motivations can affect which action might make the most sense for the company and employee. “Employees generally don’t leave for pay unless…[they] get an offer that’s so substantially above where they are, but if it’s 10 or 15%, it’s entertaining and charming up until the moment I need to make a decision leaving,” he said, suggesting HR leaders or managers work with employees on identifying goals and a plan to achieve them

This report was originally published by HR Brew

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