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Home Career Growth

Why Career Development Is Becoming A Form Of Compensation In The AI Era

As AI changes the value of existing skills, managers are shaping employees’ future earning potential through stretch assignments, customer exposure and access to important decisions.

Nirit CohenbyNirit Cohen
October 19, 2026
in Career Growth
Reading Time: 5 mins read
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Why Career Development Is Becoming A Form Of Compensation In The AI Era

A lower-paying job that builds valuable skills, expands responsibilities and offers access to new technology could leave workers better positioned to earn more in the future.

Suppose you have two job offers to choose from.

One offers $120,000 to continue doing work you already know. The other offers $100,000, but exposes you to new technology, brings you closer to customers and decisions, expands your responsibilities and leaves you significantly more capable two years from now.

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Which job really pays you more?

For most of our working lives, we have answered that question by looking at salary, with career development somewhere on the sidelines. AI complicates the calculation. A higher salary may mean more money today while leaving you with less value in tomorrow’s labor market.

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Career development is becoming part of what a job pays.

In the AI era, career development increasingly involves building the capabilities that enable people to move into higher-value work as their jobs evolve. When future earning capacity rests on staying relevant, continued development becomes part of career security.

Why AI Is Raising the Value of Career Development

For years, experience tended to accumulate value. You learned a profession, improved at it and expected ten years of experience to make you more valuable than five. As AI reshapes work, the connection between tenure and market value is becoming less automatic. People can spend years mastering work whose value is now falling.

That is why employee development matters in the AI era. Helping people get better at their current jobs is no longer sufficient. They also need opportunities to enter work that creates more value as technology evolves, sometimes before they have the skills or experience that would normally qualify them for it.

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A manufacturing company that needed people to paint metal components recruited high school graduates working in local car shops. When robotic arms arrived at the facility and took over the painting, the company trained those employees to operate the robots. As the robots grew more autonomous, some of those workers learned to program them.

Employee development at this company helped high school graduates from car shops become robotic arm programmers. Their job security depended on their ability to keep moving to the next layer of value as the work evolved.

AI is extending that dynamic to many more professions. People increasingly have reason to assess a job by asking: What will working here enable me to do that I cannot do today?

How Managers Create Development Opportunities Through Work

Most managers cannot adjust someone’s salary whenever they choose, but they distribute development opportunities every day. They decide who joins the important meeting, who gains exposure to a customer, who presents to senior leadership, who tackles an unfamiliar project, who is trusted with responsibility before being completely ready.

Those choices allocate future market value.

Consider a warehouse employee who told her manager that she missed having contact with customers in her job. There was no obvious course that could address this within her current role and no new position waiting for her. Months later, the manager was asked to nominate someone for a cross-functional group investigating an operational issue. Usually, he probably would have selected the person whose role most clearly fitted the assignment. Instead, he recalled their conversation and sent the warehouse employee.

She suddenly needed to represent the wider logistics operation, understand parts of the system beyond her own role and work with people closer to customer needs. Over time, that exposure helped her move into a different role.

For this employee, career development happened without a course or a formal program. She still gained something with real economic value: capability she could take with her into future work.

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The work assignment became a development opportunity.

That example mirrors how employees say they develop in practice. TalentLMS’s 2026 workplace learning study found that 65% of employees named on-the-job experience as the leading way they build the future skills they need, versus 47% who cited company training. Another 86% said they gain new skills or knowledge by figuring things out as they do their jobs.

An assignment can hold different value for different people. A project that feels like another burden to an experienced employee may offer someone else the exposure they have been seeking. A task one person has mastered and finds repetitive may be exactly what another needs to learn next.

Managers therefore need to understand more than what their people already do well. They need to know what employees want to learn, where they seek more exposure, which aspects of their roles no longer stretch them and which capabilities they expect to need next.

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Development is personal. Its value becomes clear through the eyes of the person who is developing.

A technology company thought it would lose a senior employee because it could see no clear next step for him. Asked what work he would choose if he could do anything inside the company, he surprised everyone. He wanted to join a basic sales function usually staffed by much more junior employees.

To the organization, the move hardly looked like development. It appeared to be a step backward. For the employee, however, it closed a capability gap he knew would matter if he started a company one day: he did not know how to sell. Both benefited. He remained with the company for another two years, bringing his experience to a function that gained from it.

How Career Development Fits Into the Employment Bargain

Organizations already recognize that employees attach economic value to aspects of work beyond cash. Benefits, flexibility, autonomy and job security all shape how attractive compensation feels.

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Career development now merits a place in the employment bargain. WorldatWork’s 2026 State of Rewards study includes career growth alongside compensation, benefits, recognition and well-being in its total rewards framework. The analysis found career development to be among the strongest predictors of employees’ intention to stay, while satisfaction with compensation and benefits was among the weaker predictors.

This does not suggest that employees will regularly accept much lower salaries in return for learning opportunities. Financial needs remain real, and pay is still fundamental to the employment relationship. As the useful life of skills gets shorter, though, career security increasingly depends on the capabilities they can carry with them.

Organizations therefore have a new set of questions to ask.

What new capabilities did people build in our organization this year? Who gained exposure to emerging technologies, customers, decisions or functions? Are people adding genuinely new experience with each year, or repeating experience they already have?

For decades, we have learned to measure what employees produce for organizations. As AI reshapes work, organizations also need to examine what they are producing for their employees.

Salary shows people what their work is worth to the company today.

Development shapes what they will be worth to the market tomorrow.

Employees will increasingly weigh both.

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Tags: AICareer GrowthWorkforce
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Nirit Cohen

Nirit Cohen

Nirit Cohen is a leading HR strategist and thought leader on the Future of Work. With 30 years of global experience at Intel in senior leadership roles across HR and M&A, she bridges emerging trends with practical solutions to help organizations navigate the complexities of the evolving world of work. Nirit holds a master’s degree in Economics, specializing in Technology Policy and Innovation Management. For over a decade, she has written a widely read weekly column on the Future of Work, currently published on Forbes. She has also authored a book on career management in a changing world. Her expertise in workforce transformation, combined with leadership across multiple disciplines, makes her a sought-after speaker and consultant.

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