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The start of the new year often comes with money-related resolutions, like meal prepping to save costs or paying off credit card debt. While these are worthy goals, there's a limit to how much you can get ahead by cutting back.
Another option is to boost your income — either at your current employer or a new one — by learning new skills and advocating for yourself.
But it's not just about learning how to use ChatGPT and expecting a raise. Instead, employees need to figure out how to combine these types of hard and soft skills, while communicating what they're learning to employers.
Combining hard and soft skills
Hard skills are technical or measurable skills, such as coding, accounting and writing. While there can be some subjectivity involved with hard skills, it's generally easy for employers to see whether or not you have those skills.
But to really up your income, hard skills like AI proficiency needs to be combined with less tangible soft skills, like interpersonal skills, communication skills, critical thinking and analytical skills, said Lisa Countryman-Quiroz, CEO of JVS, a San Francisco-area nonprofit that provides job training programs.
Enrolling in an AI graduate certificate program might help you land a job that pays more, for example, but to improve your chances of increasing your income even more, it's important to be able to apply soft skills like problem solving while using new technologies.
For example, a sales rep might use AI to conduct more outreach, but they still need to think about who are the customers they're trying to access, what are they interested in, and how can AI help craft messages that are most effective at tapping into that customer base, said Countryman-Quiroz. "That is a combination of being creative, being an analytical thinker, and figuring out how that tool can help solve the problem" of acquiring more customers.
Soft skills like perpetual learning ability are also critical for boosting your long-term earnings, rather than only relying on hard skills for quick pay bumps.
"There are lots of skills that decrease in value really quickly over time, like how to use a piece of software. Then there are skills that really transcend that, that last a really long time," like problem solving, communication, handling change, said Matthew Daniel, senior principal of talent strategy at Guild, a company that works with employers and employees in areas like education and career development.
"These were important before AI. They're even more important on the other side of AI. Because ultimately, what those point to, is do I know how to learn?" said Daniel. "Employers really want to know not what you know today, but are you going to be flexible for whatever the next three to five years hold."
Developing new skills
To develop these types of hard and soft skills, you don't necessarily have to get a new degree. There are a range of options to fit different lifestyles, budgets, goals, etc. Perhaps what's most important is to demonstrate that you're actively developing new skills, rather than reflecting on the past.
"People who say to an employer, 'I'm enrolled in this course, I'm enrolled in this program, I'm investing in myself,' those people see a mobility rate or a chance at a promotion or kind of a horizontal move at about three and a half times their peers," said Daniel, according to Guild data.
"It doesn't have to be a college," he added. "We live in a world where everybody cares more about the skills that you're growing than the college credentials that you have."
That also means that many colleges now offer shorter, more affordable programs than what you might assume.
The higher education space is "doing more specialized certificates. Instead of committing for three years, you commit for four to six months to get a grad certificate in a particular topic," said Daniel.
Many companies also pay for these programs, as they want employees to learn new skills without taking years to do so, given the pace of change, he added.
And if school isn't an option for you, then consider how you can make the most of what's around you. In addition to some free online programs, you can find in-person training from community organizations, for example. You can also try to make the most of your current job or hobbies to tackle new responsibilities and work with new tools.
For example, "think about community groups and volunteering. Where are there spaces for you to demonstrate your leadership skills? And then track that," said Countryman-Quiroz.
Making the case for higher pay
As you develop new skills, it's important to speak up for yourself so you can earn more. One way to do that is to talk about projects you're working on that demonstrate skills development.
In an interview, for example, "saying I'm doing some coursework right now on how to handle change management regarding AI, and I'm writing a communication plan for employees about how they should do that — that hits super differently than saying I read a book on AI, or I'm in a grad certificate program," said Daniel. "It's the ability to articulate what you're learning in a way that connects with a business strategy and the person that you're being interviewed by that makes a really big difference."
Keep in mind that talking about what you're learning is a skill you may need to practice, such as through mock interviews and discussions with career counselors.
"If you build skills but don't also learn how to talk about those skills, you've missed some of the opportunity to earn on top of the skill that you've built," said Daniel.
A similar philosophy applies if you're trying to earn more at your current job, such as in performance review conversations. And if you're unsure what skills would help lead to a raise or promotion, don't be afraid to ask.
"I really encourage people to be upfront with your employer," said Countryman-Quiroz. "Say 'I love this organization. I want to move forward…What are the opportunities here? Or what are the skills that might be holding me back?'"
"Any employer who hears that is going to know that you're invested and committed to the organization and to developing alongside it. So be frank, have those conversations, and then be ready to take action," she added. "Follow up with that person, maybe not in a demanding way, but to say, 'I heard your advice. I've really been working on it. I'm curious if you notice a difference.'"
These types of conversations might feel a little uncomfortable for you at first, but it's critical to be your own advocate.
"It is only people who don't talk about raises and promotions who don't get raises and promotions. You've got to be clear about what you want," said Daniel.
