The essential skills you need to supercharge your earning power

Workplaces are constantly changing, so if you want to build a thriving career with a strong earning capacity, you need to master the skills that are in demand.

Technology – particularly AI and automation – will continue to shape and influence the skills required now and in the future.

The 2017 McKinsey Global Institute report surveyed 46 countries representing about 80 per cent of the global workforce and found that fewer than 5 per cent of occupations could be fully automated, but about 60 per cent could have at least 30 per cent of their activities automated. They concluded that most fields would change in some way.

Jump ahead to today, and the rapid advance of AI is exposing large new swaths of the workforce to disruption due to the ability to automate non-routine tasks. The World Economic Forum’s Future of Jobs Report (2023) outlined how 43 per cent of work tasks will be automated, and a quarter of jobs will change by 2027.

Sam Altman, who started the Open AI company, said “all repetitive work that does not require human emotional connection is likely going to be at least greatly supplemented by machine learning”.

It’s more than technical

Given the focus on AI, it’s unsurprising that we hear much about the future being STEM – science, technology, engineering and maths.

However, when building your skillset, it’s essential to remember that while the predictable and process elements of roles will be automated or outsourced to robots, what can’t be automated are relational, emotional and leadership skills.

Indeed, the fastest-growing occupations require higher-level cognitive skills, and 30 to 40 per cent of jobs require explicit social-emotional skills.

Sharpen your competitive advantage

A joint study by Kellogg Northwestern and MIT Sloan School of Management examined how new technology impacts workers and their earnings. They concluded that AI could level the playing field within an occupation and that the people most affected would be those currently better at their jobs.

However, their research found that roles that relied on interpersonal skills were hardly affected by technological change.

These findings reinforce that the so-called ‘soft skills’, such as creativity, leadership, and emotional intelligence (EQ), are becoming more critical than ever. AI cannot replace the human-to-human connection, nor can it replicate human wisdom, so there lies your competitive advantage.

Know what’s changing

This digital and automated world prizes curiosity, creativity, problem-solving, initiative, adaptability and EQ, and the World Economic Forum’s Future of Jobs report highlighted this skills shift.

Skills such as manual dexterity, memory, technology installation, personnel management, and coordination are all declining. In contrast, analytical thinking and innovation, active learning, creativity, technology design, complex problem solving, leadership and social influence and EQ are all increasing.

Leverage what’s scarce

If you want to grow your earning capacity, you should focus on what the market needs and what is scarce.

It’s the basic economic law of supply and demand. If there are lots of people with the same technical and professional skills and demand is low, wages can be squeezed.

In contrast, if you work in a sector, industry, or profession that is in demand and there is a short supply of people to fill those roles, you’ll have greater bargaining power when it comes to negotiating salary and working conditions.

While you can’t change professions overnight, you can be far better prepared by looking to the future and always considering what new skills you need to stay relevant in a shifting job market.

Don’t play safe

To be the leader of your career and ready to adapt and respond to shifting market needs, don’t play safe when it comes to acquiring new skills and elevating current skills.

Step outside your comfort zone by experimenting with different concepts and exploring emerging ideas to learn new working methods.

Taking this approach means you don’t wait for someone to tell you what you need to learn. You recognise that the job market is dynamic, with new technologies and methodologies emerging regularly.

Consequently, you actively seek to stay abreast of your profession’s and complementary professions’ latest thinking and ideas. This learning could be through formal education, online courses, or self-study.

Accelerating your career and earning capacity requires you to focus on what you must do now to ready yourself for what lies ahead.