How much transparency is good for people and companies? – In times of Artificial Intelligence, the question of transparency has come back into focus. While we had slowly become accustomed to moving through the analogue and digital world as “transparent people”, the question of how transparent people and processes may, should and must be takes on new relevance due to the increased use of AI. This is because AI systems are able to influence decisions that have far-reaching consequences. For example for the success of companies, but also for the working lives of many people.

Transparency = Progress

In recent years, increasing transparency in companies has been a sign of progress. Many companies have realized that it doesn’t make sense to operate in silos. And that in the face of increasingly complex challenges, it is wiser to share knowledge and collaborate across departments. The classic hierarchy pyramid no longer has a good reputation. Many young talents in particular want a working environment at eye level, and the opportunity to help shape things instead of just executing them.

In organizations of a new type, there are dynamic roles instead of fixed positions, salaries and vacation days are sometimes openly visible or negotiated in the team. Some organizations are also embracing transparency in areas that were once clearly separated from the work context, such as physical and mental health. For example, there are codes, tools and processes if the colleague cannot attend the meeting due to a panic attack or the colleague with menstrual pain is not fully productive.

The vulnerable leader

There is also a growing awareness at management level of the importance of transparency to motivate teams, build trust and make the right decisions. Managers who show themselves to be fallible also take away their colleagues’ fear of making mistakes and thus create an environment in which new things can be tried out. By openly dealing with wrong decisions and setbacks, they reduce the likelihood that they will be repeated. Ideally, they act as mentors, let their employees participate in their learning and development process. And are thus role models and compasses for their team. Those who consistently live New Leadership do not see themselves as solution providers. But first and foremost as listeners and networkers with the aspiration to connect the right personalities at the right time and to bring them into the right positions in the company.

Really understand what’s going on with AI

This is exactly where artificial intelligence comes into play and with it a new level of possible transparency in organizations. This is because AI systems enable a deep understanding of the people who are involved with the organization. Whether as applicants or employees – their behaviours, motivations and emotions.

At Zortify, we use NLP (Natural Language Processing) tools and can thus achieve a level of Active Listening that only very few people master. Instead of just looking at CVs or job titles, we use open-ended questions and let the AI listen deeply. It not only processes what is said, but also recognizes what is really meant. And it can do that on a large scale. This way, it can significantly strengthen and support human intelligence instead of replacing it. Specifically, it can help people who are making decisions about other people’s next career move to make better decisions, significantly improving the quality of their work.

Making transparent what makes us transparent

AI that uses natural language to identify the personality of candidates, analyzes their entrepreneurial capital. And can also detect whether a person has a tendency towards toxic behavior creates an unprecedented level of transparency in organizations. This helps companies to find people who are a perfect fit for them. Expensive misplacements are avoided; team spirit and innovative strength are improved.

A look at the numbers:

Applicants also benefit because they are more likely to find a position that matches their personality in a company that shares their values.

However, it is also clear that this level of transparency places high demands on the ethical handling of the systems that generate it, i.e. AI. You could also say that a technology that makes people increasingly transparent must itself be very transparent: How does it come to its conclusions? What data does it base its analysis on? Up to what point can we understand the technology’s recommendations and where does the non-transparent part begin? What does this in turn mean for human decision-making?

Humans and AI hand in hand

We believe that humans must always be the last element in the chain when it comes to life-changing decisions. We see a future in which human and artificial intelligence work hand in hand, with humans having the final say. An ethical approach to transparent information begins with the question of ‘what for’? The use of AI must never be an end in itself, but must serve a clear goal. Ideally, this should be to change the (working) lives of everyone involved for the better.

In detail:

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Dear Miriam, AI as the brain and humans as the heart of an organization – is that what a bright future in companies will look like?

That would be a misconception: Humans are both the brain and the heart of organizations, and AI supports people in their work. AI is incredibly good at answering questions, but humans are much better at selecting the right questions. And implementing things with heart.

Looking at the comment sections on LinkedIn one can`t help but think that the human part is not developing very well. Is AI, in the end, the better, more empathetic leader that shapes company culture for the better? Is it the better brain and the better heart? Or, to put it differently: Do human qualities really become more important in the face of advancing technology, or are they really more of a hindrance on the path to a joyful, appreciative, and motivating work environment?

That impression can indeed arise – precisely because people don’t take enough time to focus on collaboration and building trust. Let’s take the feeling of appreciation as an example: Talking to my colleague or superior, feeling they really listen to me, pay attention, take my issues seriously and act on it – this is something AI will never be able to authentically generate.

AI can be extremely helpful in freeing up time so that we can take the time for exactly these kinds of conversations and interactions. By taking over analytical and routine tasks, it gives people the freedom to do what they are really good at: being human.

AI systems are already capable of making objective, analytically-based decisions, providing constructive feedback, coaching, and motivating. They are available 24/7 and neither have egos nor bad moods. So why do we still need human skills in companies, and which skills are those?

There are many abilities that AI can’t replace. For example, creating a feeling of appreciation, attention or affection. Conveying real deep meaning. And because only we humans have these skills, it is vital that we train our own workforce really well in them.

Let’s take the example of salespeople in the banking sector: nobody needs a human contact person in a bank to fill out a loan comparison portal and calculate the correct interest rates anymore. But when it comes to addressing people’s fears in a credit decision, reducing complexity for them, listening to their worries and needs or even empathizing with them to find out which criteria are really important for the credit decision, people’s emotional intelligence comes into play. Companies whose employees do not have these skills will have a very difficult time in the future.

How will recruiting and employee development change in the coming years?

Two trends are emerging: On the one hand, we are observing the ‘War for Talent’ on the labor market and. On the other, the trend towards a ‘Great Resignation’. Over the past two years, it has become clear that it is an employee market and no longer an employer market – the pool of talent has thinned. Companies that hide behind employer brand campaigns are quickly exposed if there is no corresponding corporate culture behind them. The expensively recruited candidates know their market value, take advantage of the oversupply of jobs and are more likely to resign.

When it comes to active sourcing, many recruiters are now approaching employees from other companies. It is therefore all the more important that there is a cultural fit so that employees are committed to the employer in the long term. To clear up a misunderstanding: this does not mean that employers have to do everything that employees demand. Rather, the aim is to create an attractive and modern working environment in order to retain employees. It has become more important to recognise the value of existing employees. Despite transformation changes, their wealth of knowledge and the experience they have gained within the company are precious.

With the help of employee development, existing employees can be supported in the process of transformation. Studies show that 80% of transformation projects usually fail because of the people, not the project itself. It is therefore important to involve employees in the process and not present them with a fait accompli.

At DeepSkill, you work with AI systems to promote the emotional skills of employees in organizations. How do you do that?

We call them ‘Deep Skills’, as our company name says. This is an overarching term for all skills that involve emotional and social competences. Skills such as emotion regulation, communication skills, changing perspectives and team development. Skills that employees need to be able to operate effectively in the modern, hybrid world of work. We have clustered these skills in our DeepSkill competency model. Allowing us to quickly and easily configure tailored coaching and training programmes.

AI helps us in different ways to make learning and the return on investment (ROI) of employee development significantly better. Firstly, AI enables the full personalization of learning materials, increasing the relevance of learning content for our learners and making learning much more effective. Secondly, we synchronize the company’s strategic goals with optimal learning paths, allowing for real behavioral change. This is also where Zortify comes into play: AI-supported diagnostics allow us to tailor learning content, formats, and intensity to each individual based on precise assessments. Off-the-shelf training is a thing of the past. Every learner receives exactly the right content and can develop in a targeted way based on their assessment results.

Employee diagnostics and personnel development are seen as the new super duo. They only work well if they go hand in hand. Would you agree to that?

Diagnostics makes it possible to identify employees’ areas of development and show in detail where their strengths lie. Which potential is still untapped and in which areas it is worth investing in further development. Personnel development is then the decisive lever for unlocking this potential. Without personnel development, the recognised areas of development cannot be fully exploited and the expected return on investment does not come about. At the same time, personnel development without prior diagnostics runs the risk of implementing measures in the dark and not addressing the relevant development needs. By combining diagnostics and personnel development, companies benefit in two ways: development needs are addressed in a targeted manner and potential is optimally utilized.

For more information about Deepskill check out their website and/or their LinkedIn account.

Did you know that DeepSkill received 1.5 million Euro funding last year? – Read more about the financing round and how DeepSkill is investing in innovative employee development technology in “Personalwirtschaft” magazine.

Prefer audio? – Then we recommend the interview with Miriam in SAATKORN‘s podcast.

You enjoyed the insight into the very practical use of AI in HR? You want more inspiration and hands-on tipps on how to start? – Check out the interview with Tom Ritsch, Co-Founder of AOAIO, and the interview with Dr. Hans W. Hagemann of Munich Leadership Group.

A good leader – is that something you are or is that something you become? – Let me put it this way: you are one if you are willing to become one. In other words, leadership requires a willingness to develop. Leading always means learning to lead. It is an ongoing process that is never finished, especially in the fast-paced world we live in. 

I consider three spheres to be important in which leaders should continuously train themselves: 

These spheres do not necessarily build on each other. Rather, I am constantly moving between them, sometimes more in one, sometimes more in the other. 

Leadership starts with myself

Let’s start with the first sphere, my own current state. Dealing with this usually becomes more urgent when things are not going well. When I notice that I keep falling into certain counterproductive behaviors, for example. Recently, a very interesting article was published in DIE ZEIT. It deals with the question of whether and how you can change your own personality or certain characteristics. The author refers to findings from psychotherapy research and thus to four essential steps for making changes to oneself: 

The common thread in this sphere is self-reflection. Knowing and leading yourself is the starting point for leading others well. 

Resisting the temptation of linear thinking

The second sphere comprises my own development process as a leader in the sense of “leadership by doing”. Just like personal development, this process is also ongoing. It’s about consciously “taking the lead” again and again when the situation requires it. And, before and after that, moving within the organization and the outside world with a questioning and curious attitude: 

To do this, it is helpful to keep broadening my perspective, to move in new contexts, to surround myself with people who do completely different things than me or the organization I work for. 

I also train myself to recognize trends and patterns and am careful not to think too quickly in simple cause-and-effect relationships. Because the world is complex. And the flood of information and data sometimes doesn’t make it any easier. What helps is a systemic way of thinking that makes it possible to recognize the interplay of different dynamics and resist the temptation to think too linearly (X is the cause of Y and that’s it). This includes the willingness to realign myself in this system (what to keep doing, what to start doing, what to stop doing), to look at the system and my role in it from the outside and to search for new ways to make it work. 

People and data skills

This in turn requires me to remain open to change. But also to take along those who have a completely different mindset than me. For me personally, the latter is one of the most challenging parts of leadership: actively engaging not only with those who are similar to me. But also and above all with employees who think and work very differently and have very different challenges than me. Good, unbiased data, generated with the help of artificial intelligence, can help here. This comes with another important leadership skill, though: Data competence. I.e. the ability to analytically and critically engage with data and derive the right conclusions from it. For example with regard to the individual potential and development of my employees. Which brings us to the third sphere: “actual leadership” in the sense of my leadership role in direct interaction with the people in the organization.

Leading and letting others lead

I keep asking myself when I, in my executive role, should actively take the lead and when it is better to let others take the lead. For me, this is the core of modern leadership. In which leadership is not based on a formal position, but rather unfolds situationally. In the face of the complex interplay of people, markets and global developments, the knowledge and experience of all employees is valuable for making good decisions.

Everyone can do or knows something that someone else cannot do or does not know. So anyone who wants to take responsibility for solving certain tasks and take the lead must be given the opportunity to do so. Decision-making power can vary depending on the task and project. It is no longer linked to the position, but to the competence for the current task to be solved. For example, a new employee can lead a project if he or she has the necessary know-how. While the senior manager only assists in this project. 

Leadership Culture

This requires a leadership culture in which people have the confidence to take the lead if, for example, they notice negative developments in the organization or a project is set up that requires their expertise. Such a culture is created above all by an empathetic, well-informed leader who is capable of reflection (see spheres 1 and 2). Their goal should be to make themselves as dispensable as possible in day-to-day operations. This requires employees to know the framework in which they operate and the degree of freedom for situational leadership within this framework. As a leader, I need to decide where to define hard criteria that give employees guidance when making decisions. And where it is possible to leave decisions open so that employees can negotiate things with each other and individual team members can take the lead themselves. 

Thank you, unsympathetic filter.

Stimulating and supporting these processes is also important in order to bring up a new generation of leaders who can develop further in the three spheres mentioned. Employees who are particularly well suited to executive roles due to their personality traits can be identified during the application process with the help of smart AI technology. At the same time, AI generated data helps to ensure that people with toxic behaviors, who according to my experience are neither interested in self-reflection nor have great empathy or special interest in the strengths, wishes and abilities of their colleagues, fall off the grid at an early stage. Technology with a built-in “unsympathetic filter” for sure will not make the perfect executive team by magic. But it does make a significant contribution to ensuring that the right people can start to become leaders at the right time. 

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Personality first – this is one of the most important trends in dealing with talent.

Why? 

The so-called “hard” skills that companies need are changing faster than ever before. Today’s expert skills will be yesterday’s news tomorrow. What remains are the supposedly “soft” skills and people’s personalities. The better companies know their employees, the better they can assess who they should invest in in terms of professional and personal development.

Bye Bye Bachelor

But an engineer still needs to be familiar with physical principles; an architect needs to know material features, how to use drawing programs and what regulations to take into account. – That is true. Expert knowledge is essential in some professions. For many jobs, however, a different trend has been emerging for a long time. While German HR departments cling surprisingly persistently to university degrees in their job postings, companies in other countries have long since abandoned them. According to a study published in the Harvard Business Review in 2022, US companies reduced the requirement for a university degree by 31 percent when advertising positions with a high level of qualifications, including management positions.

The British branches of Ernst & Young announced ten years ago that a university degree would be completely removed from the job profile. This is in line with numerous studies that were recently listed in a very interesting article on t3n. It clearly shows that soft skills will be much more important in the future. And that goes for engineers and architects too, by the way. After all, they are also involved in an increasingly complex environment that is subject to constant change. And in project work that is carried out by multidisciplinary teams. And in companies that are under increasing pressure to transform their structures from the ground up while day-to-day business must continue.

Transformation needs personality

These companies (and sooner or later it will affect almost all businesses) need employees who are willing to develop with them. It is becoming increasingly important to entrust people with the right role in the company at the right time, in which they can access and contribute their full potential. Certain character traits are even more important in that regard than professional qualifications or a formal degree.

Why?

Because transformation means that the traditional hierarchy is increasingly dissolving. And with it the logic of the commander and the recipient of orders. This leads to consequences:

1. Without top-down instructions, interaction between employees who are on the same organizational level becomes the most important steering element in companies. In the book “The Humanization of the Organization”, the authors write in this context: “This brings with it all kinds of annoyances – self-promotion, refusal to make a statement due to stage fright, tactful agreement to nonsense, (…). Anyone who frequently has to endure fruitless meetings that largely serve the self-promotional needs of some of the participants (…) knows the problem.”

2. In structures where individuals have more responsibility and cannot refer to their superiors every time they have a dispute with a colleague, the ability to deal with conflict and self-control are essential. The ability to win others over and mediate between subjective realities takes the place of punishment and reward or right and wrong.

3. Having the freedom to shape things in your own way also means making decisions under uncertainty. This requires a stable personality and at the same time the right instinct for situations and the ability to get the right people on board.

The best basis for coping with these new conditions are employees who have certain personality traits (or: who do not have them – see excessive tendency towards self-promotion) and with them certain soft skills at a high level. At the very least, however, personality is a good starting point for acquiring these skills. Sebastian Klein writes in the magazine Neue Narrative (issue #19): “People who resist any kind of personal development and reject personal responsibility cannot play a leading role in an organization that is fundamentally changing its operating system.”

More automation – more soft skills

An operating system that must change not only in view of the demands of a new generation of employees, but also in view of increasing automation. Many jobs will change, moving away from purely mechanical activities towards mediating, translating and explaining work at the interface of machines and interdisciplinary teams. Personality and soft skills will be the decisive factors in workforce planning and in the design of individual learning and development programs.

So which character traits are the most important? Which soft skills will be even more important in the future? – There are various rankings on this, such as LinkedIn’s Top Skills 2024, which also clearly shows that the supposedly soft factors are gaining in importance.

The “Inner Development Goals” framework is also worth a look. This has derived various dimensions from the question of how we can create a sustainable and liveable future and assigned the essential skills and attitudes to them.

If you put the various rankings and frameworks side by side, including the models we use at Zortify to analyse the personality of employees and applicants, a very clear picture emerges of where the journey is heading, even if individual nuances will vary from organization to organization.

Our top 3 personality traits…

… and the corresponding soft skills are:

1. High level of open-mindedness
People with a high degree of openness are generally curious, tend to question the status quo and enjoy exploring new ideas and opportunities.
Corresponding soft skills: listening, exploring new topics, taking initiative

2. Moderate agreeableness combined with moderate competitiveness
Individuals obtaining moderate scores on the Agreeableness – Competitiveness scale oscillate between yielding and adapting to other people’s needs but also remaining firm in their own beliefs and points of view. 
Corresponding soft skills: empathy, listening, communication 

3. High adaptability (agility mindset)
Agility Mindset is a personality dimension developed by Zortify. A high level is characterized by dynamism and flexibility as well as the strong will to shape and initiate the omnipresent change.
Corresponding soft skills: creativity, resilience, ability to prioritize

These skills already made the difference between good and outstanding companies in the past. Today they are simply essential. And they will continue to be a must for organizations tomorrow and the day after tomorrow. They are the qualities and skills that can never be fully automated. At the same time, new technology can be the key to finding them with little effort and without bias in candidates and existing employees.

“It is not the strongest or most intelligent who will survive but those who can best manage change.” 
(Charles Darwin)

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“Too leisure-oriented? – We’re just hard-working in a different way.” was the headline of the brandeins magazine in September 2020, using many examples to draw a picture of a Generation Z that is changing the world of work practically “on the job”. The new generation of employees is neither lazy nor inherently less well educated than previous generations, , even if they are repeatedly accused of being so.

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“Too leisure-oriented? – We’re just hard-working in a different way.” was the headline of the brandeins magazine in September 2020, using many examples to draw a picture of a Generation Z that is changing the world of work practically “on the job”.

The new generation of employees is neither lazy nor inherently less well educated than previous generations. Even if they are repeatedly accused of being so. Rather, they were born into a world that is becoming more complex and confusing with each year. A world in which static knowledge is becoming less important. And they are constantly challenged to acquire new information and new skills for themselves. DIY in a continuous loop. Against this backdrop, GenZers take a skeptical view of what has long been considered normal and desirable: a job for life, for example, or climbing the traditional career ladder. 

Left and right is the new up

Today, many young employees appreciate flat hierarchies and an open environment in which “upwards” is only one of many possible directions. Rather than being above others, it is much more important for them to be connected with their colleagues. To work on eye-level towards a common goal with the support of competent and empathetic leaders. And to develop individually in the process. These are the key factors for employee retention. 

A study from the US came to the conclusion that employees who are promoted horizontally or professionally within the first three years in the company, for example (temporarily) taking on a new role with greater responsibility in another department or leading a new project, are 62% more likely to stay with the company. With a “vertical” career move, such as a promotion to a management level, the figure is only slightly higher (70%). Without the opportunity to try out other areas of responsibility outside of the routine, however, the probability of talent staying falls to less than 50%.

Young high potentials in particular are being headhunted and tend to be more willing to change jobs than older employees. What can a company offer to counter the growing “market of opportunities” from outside? – A diverse internal market of opportunities, for example, that allows employees to constantly realign their work, reinvent themselves, try things out, take on new roles, take on more responsibility – and all within the organization in which they are already active and rooted. This is not wishful thinking, but now a clear expectation of GenZ: according to Deloitte (2021), 70% of GenZ employees expect their employer to help them achieve their personal and professional goals.

The transparent generation?

In return, employees who want to develop further are the best thing that can happen to a company. It is important to find the “sweet zone” where the goals of the company and the many individual purposes and personalities of the employees overlap. The more precisely organizations design their Learning & Development programmes, the better it is for them. After all, employees who thrive in their new role are the key to companies being productive and innovative.

AI technology can provide valuable support in growing alongside each other. Especially with regard to employees of a generation that is used to using digital technologies and generating data about themselves. From mindfulness apps to fitness trackers, many young people naturally use data-based tools to better understand themselves. And navigate through a world that demands a lot from them. So it’s only logical that their employer should also use smart technology to help them find their place in the organization – and do so continuously.

AI-based personality diagnostics can help GenZ:

Strengthening strengths 

Instead of working on deficits, companies should focus on the potential of their employees. Further development based on the principle of “strengthening strengths” is not only more rewarding. But also saves time and money and increases the chances of employees fulfilling their role well. The AI-based personality analysis can help to find out which basic character traits qualify employees for certain roles in the organization. And in which areas they can still work on themselves in order to be capable of performing a task in all its facets. 

Personality first, skills second

Studies on requirements in job advertisements also show that the focus on personality and the associated strengths is becoming more important. According to the study, “frustration tolerance” was mentioned 71 percent more frequently in job advertisements in 2021 than in 2018. Empathy was requested 39 percent more frequently. At the same time, the need for existing language skills, among other things, fell by almost a quarter.

Personality first – this means that AI-based personality diagnostics are also gaining massively in importance. This is because it enables companies to reliably measure the key characteristics of (potential) employees.

The benefits of AI-based personality analysis:

And it works particularly well for GenZ employees. That is because: 

And: they are hard-working. Just in a different way 😉

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How much “humanity” is good for organizations would be answered very differently by people from different philosophies. On the one hand, there are those who say that we can only do good work if we are allowed to be ourselves in a professional context. With the full range of our characteristics, feelings and needs. This view has become very popular with the New Work movement. In his book “Reinventing Organizations”, Frederic Laloux talks about the principle of “wholeness”: we can only do good work if we can be ourselves and don’t have to spend energy on wearing a professional mask.

Many of the things we see in organizations today are based on this way of thinking. The dress code has been abolished in many industries. Employees bring their dogs to work and, especially in young companies, it is no longer a stigma to cry or talk about fears in the work environment.

At the same time, there are many voices (and my perception is that they are becoming increasingly louder) that say it is important to differentiate between people and members of an organization. In this context, the authors of the book “The Humanization of the Organization” speak of a necessary “barrier” between people and companies that protects both sides. As long as the individual character traits and needs of a person do not clash with the manners and behavior associated with a role in the company, they are none of the employer’s business. In this context, the authors speak of “role expectations”.

The bright side of power  

These role expectations raise questions in the face of a fundamentally changing world of work. Examples include the following:

One thing is clear: the values of the next generation and therefore also the expectations of how people work together in companies often differ from those of the baby boomer generation. Whose representatives still hold many important positions in organizations. Especially when it comes to leadership behavior, the ideas diverge.

For a long time, character traits that we would describe as toxic today were beneficial for climbing the corporate ladder. Above-average manifestations of counterproductive behavioral tendencies (self-centeredness, impulsive, strategic manipulation) are still strongly represented among managers today. This is increasingly becoming a problem for companies. Young employees in particular expect their managers not only to set goals and make decisions. But also to motivate, listen and respond empathetically to their needs. According to a LinkedIn study, 41% of employees with up to two years’ work experience would like managers to show more empathy. Among trainees and students, the figure is as high as 60 percent.

More than four colors

However, such soft factors are difficult to read from a CV or documented performance. This is where modern measurement methods based on AI offer new possibilities. AI systems can help HR managers to develop an in-depth understanding of employees’ individual strengths and development potential. Technology makes it possible to take a nuanced look at people and not make hasty judgments. This is important because it should be clear to every HR manager by now that human personality cannot be broken down into four color types. At the same time, the many nuances cannot be captured by an interview or coaching session alone. Especially as all those involved are not free from bias. AI can set new standards here and shine a light on characteristics that have often been overlooked. But are essential for the functioning of an organization.

What does AI measure?

There are different AI models that target different spheres of personality. The goal behind the use of AI systems for HR is basically always the same:

In the area of “Learning & Development”, the focus is on characteristics that are accessible for further development. It is important to emphasize that the aim is not to “turn people around” so that they fit into the organization. This is neither possible nor desirable. Rather, the aim is to use the insights gained with the help of AI to strengthen employees so that they can grow in their professional role. For example, the finance colleague who tends to be overly pessimistic learns to consciously adopt a different perspective. Or the HR colleague learns how to be empathetic. Coaching, mentoring and other formats make this possible.

Outlook

There are different views on how much humanity is good for an organization. Whichever perspective you follow, the key ultimately is whether a person’s behavior and the expectations of the role they perform match. It is less important whether it is authentic behavior or a “professional mask” that employees put on at the office door. What is more important is that their actions are rooted in character traits that consider good and productive cooperation to be desirable for the benefit of the organization and its members.

Behavioral expectations and thus also desirable traits are subject to change. To which companies must respond if they want to attract and retain employees of the new generation. The latest AI models make these character traits, which are essential for the functioning of an organization, measurable and presentable. The technology thus enables both each individual employee and the organization as a whole to develop in the best possible way and shape a desirable future.

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The use of AI systems will revolutionize the HR sector. Not using AI is no longer an option. It is now a matter of developing the necessary skills to be able to use the technology in a targeted manner. HR professionals need to start equipping themselves with the knowledge they need to use AI tools effectively while retaining the invaluable human judgment that machines cannot replace. 

The good news is that HR professionals won’t need to be able to understand complex statistical formulas or code in the future. Rather, it’s about understanding HR metrics and being able to interpret data visualizations, including modern dashboards powered by AI. This fundamental understanding enables HR professionals to gain data-driven insights to solve real-world problems.

What will be better with AI

Research shows that only a small percentage of HR professionals have advanced AI skills. However, those who do use AI and data analytics report positive effects in recruiting, employee engagement and decision-making processes. 

According to a study by Gartner, 76% of HR leaders believe that if their organization does not implement AI solutions in the next 12 to 24 months, it will lag behind those that do in terms of business success.

HR professionals need a basic understanding of how AI works, what the technology can and cannot do. They should focus on what benefits the technology can bring them and what specific use cases there are. In doing so, they should always keep the company’s goals in mind. What can they do better, faster and more cost-effectively with the help of AI in order to achieve these goals?

HR as change management 

The introduction of AI in the HR department inevitably leads to changes in processes and possibly roles. Sometimes it is enough to integrate an AI tool into a workflow and thereby achieve an immediate benefit. Often, however, it is not that simple and a rethink and reengineering of the entire process is required. This shift requires a deep understanding of where human capabilities complement AI and add value to human judgment, data collection and actions.

After all, humans will remain irreplaceable in the future. AI tools have been developed to improve human skills and can be useful in delegating tasks. Technology will be omnipresent in most activities, rather than replacing them entirely. AI systems can often make better, faster and cheaper predictions than humans. However, a prediction is not a decision, it is merely a component. The real value lies in human judgment – the ability to interpret predictions, consider ethical implications and make decisions that machines cannot. HR professionals must address ethical dilemmas, privacy concerns and the need for a continuous learning and adaptation process. 

The better HR managers understand the basic workings of AI systems, the better they will be able to argue in favor of their use. The extended basic understanding includes the following aspects:

In the future, another core competence will be not only mastering AI-related changes to tasks and processes, but also communicating them to the workforce, addressing resistance and offering training. 

Data storytelling will become more important at the decision-making level in companies. HR professionals who have mastered it can influence decision-makers by presenting data-driven insights in a convincing narrative, for example to push through additional budgets for recruiting and HR marketing. 

HR remains human

Despite the technical nature of AI, its primary goal in HR is to improve the human work experience and performance. HR professionals should therefore always take a human-centered approach when implementing new tools. At its core, it should be about understanding the needs and behaviors of employees and developing AI solutions that improve their work lives while making the organization as a whole more productive and successful. Skills in methods such as design thinking can be helpful here.

Staying agile

The future of HR work lies in combining the best of AI and human knowledge. Once HR leaders better understand what the technology can do, they can assess the potential use cases and benefits and harness the power of technology to improve their work. At the same time, they can ensure that human judgment remains at the heart of HR decision making. A balance between AI and humans is critical to creating efficient, equitable and human-centered HR practices that can continually adapt to a changing world of work.

✅ AI Literacy at a glance:

For recruiters, freelance coaches and consultants looking for a comprehensive AI toolkit, Zortify offers a certification program. This opens the door to a world of assessments that measure not only the traditional personality traits, but also the but also the counterproductive behavioral tendencies, and malleable psychological states crucial for professional and personal success.

The next certification dates:

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According to a study by Glassdoor, companies experience an increase in applications in January, while at the same time employee turnover goes up. For HR, this means juggling between recruiting new talent, conducting appreciative offboarding and keeping the existing workforce happy, often with limited budgets. If a position is then filled with the wrong person, things can quickly become tight. As most companies probably don’t have an extra “bad hire budget”, they should do everything they can to avoid bad hires. More and more companies are using AI systems to replace expensive and inefficient methods such as assessment and development centers. AI-based employee diagnostics supports HR in doing the best possible job – and sets new standards in personnel development at the same time.

Customized HR work: cheaper than ever before thanks to AI

Understanding and using AI systems costs money at first, of course. But this is money well spent. With the help of artificial intelligence, HR is much more likely to fill open positions with the right people and the investment in onboarding and employee development will pay off in the long term.

How is this possible?

Technological change is making affordable what until recently was expensive: making accurate predictions about who will fit a job and who will not. The more sophisticated the technology becomes, the better HR experts can do their job.

Above all, however, they make assessment and development centers obsolete. These involve an average of five days’ work for several HR managers and often cost tens of thousands of euros. At the same time, the many bad hires and the growing willingness to change jobs in the workforce show that they do not bring the desired outcome. AI systems can change the system. Within minutes, they analyze the information that HR needs to pre-select candidates and reduce the risk of a “bad hire”.

How to avoid the recruiting of toxic coworkers

In order to support the final decision, AI systems can analyze not only the personality profiles of applicants but also their potential fit with regard to their future role in the team. A Harvard study shows just how important this is. According to this study, a top performer with toxic behavioral traits has a worse impact on the overall performance of the company than several employees who only perform at an average level but work well as a team.

Anyone who thinks of the obvious bully when they hear the term “toxic worker” is mistaken. Toxic employees act cleverly and often poison the atmosphere in subtle ways. To avoid this, HR managers need to be able to identify personality traits in advance (i.e. before recruitment) that are not apparent from a CV or assessment center. Using this data, they can identify likely patterns of behaviour and predict how they might affect the performance of the team and the organization as a whole

In view of the increasingly complex field of HR tasks and the limits of the human ability to analyze, it was until now impossible to meet this expectation. With the rise of AI systems, this is changing. Data-supported personality analysis will very likely quickly become the new standard in employee recruitment and development and give companies more security in uncertain times.

Minimizing risk with AI

Speaking of uncertainty: in its latest issue, the “brandeins” magazine comes to the conclusion that the slow pace of digitalization in every fourth German company is due to a lack of willingness to take risks. AI can also spark a shift in thinking here: By accelerating processes and securing decisions based on data, companies can act more courageously and flexibly.

These impressive figures are a signal to risk-averse companies to invest in their digitalization even more, as new technologies can significantly reduce risks in important areas of corporate management, such as HR work.

Conclusion

Assuming you don’t have an endless “bad hire budget”, dare to invest in AI. Start low-threshold, for example with SaaS and platform solutions. Because one thing is clear: external risks will not become less in the foreseeable future, but they will be much easier to manage with AI. Companies can use AI-supported risk management and explore new fields with the help of data. The best insurance they have is the right employees who share their goals, values and culture. 

Sources:

– Why Wallet Wellness Should Be HR’s Top Priority in 2024 and How Employers Can Stretch Employee Paychecks

– Thriving in an age of continuous reinvention

– Measure Workforce Resilience for Better Business Outcomes

– The real cost of employee turnover and what you can do about it

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How Companies Get to the Bottom of Quiet Quitting

The topic of “Quitting” is stirring the HR world. People seem to be resigning in very different ways. Sometimes very officially, increasingly internally, often silently. Yet, what does it say about our work environment when people who do what is expected of them (no less, but also no more) are referred to as “Quitters”? – However, we don’t want to become too philosophical here.

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From “prompt engineer” to “AI ethicist” to “avatar fashion designer” – new technology is not only eliminating jobs, it is also creating many new fields of activity. This inspired us to think about the hurdles that HR managers in particular are currently facing and what support, new roles or professions there should be in HR to overcome them. In the best “make a wish” style, we baked them these fantastic “wish colleagues” on the fly.  The good thing is that many of the ingredients can already be found in AI applications. We’ll show you which ones.

1. Chief Talent Interpreter (CTI)

The Chief Talent Interpreter can read between the lines of CVs and questionnaires and recognize what remains hidden to others even on the second and third screen. He is a kind of crystal ball on two legs. And the results of its work are nothing short of magical.

After all, CVs and self-assessments provide HR with an initial impression of candidates and their suitability for certain positions. But far too often, it’s only when they start the job that it becomes clear what makes the person behind the written word tick, whether they can fulfill their new role and fit into the team. If this is not the case, things can get uncomfortable. In any case, it will be expensive (been there, done that 🙄). The Chief Talent Interpreter knows how to prevent this.

🎮 Colleague AI: The technological crystal ball is based on Natural Language Processing (NLP) and can interpret nuances in written responses. With its support, HR managers can identify the characteristics in a candidate’s personality profile that are important for a role and assess whether a person will fit into the corporate culture. It therefore replaces CV analysis as well as time-consuming assessment and development centers.

2. Employee Wellbeing Analyst

He not only reads what you write, but also understands what you actually want to say. He decodes hidden messages and calls for help that are hidden subtly and unnoticed by readers in written communication. High-frequency nuances in emails or interviews are picked up by his highly sensitive antennae. This enables him to speak directly to the employees concerned and find out what they need, or give the manager a confident hint that a conversation would be useful.

🎮 Colleague AI: (Our) AI systems can already read psychological dimensions from written everyday communication. Meanwhile, researchers are continuing to work on training AI in emotional intelligence (EQ). This will enable AI systems to analyze human emotions and their impact on decisions in the future. Chatbots and virtual assistants will be able to recognize emotional nuances in communication and react to them, for example in employee interviews. Good for HR: AI-controlled tools will soon be able to offer them individual training and coaching programs to train their EQ.

3. Team Dynamics Engineer

This fantastic new colleague helps individual employees to understand themselves better and also promotes effective collaboration in teams. She can predict whether the chemistry between potential team colleagues will be right based on individual psychological profiles. After all, she knows that good teamwork depends not only on skills and tools, but also on the psychological preferences of the individual team members. Therefore, even after the team has started work, she tirelessly ensures that everyone has their own safe space to express themselves freely. She always keeps an eye on how the team is currently working together and where improvements are needed.  

🎮 Colleague AI: …can already use NLP to analyze employee profiles in order to form teams that not only complement each other professionally, but are also psychologically compatible. Our “High-Performance Teams” AI, for example, divides work into six basic roles. This helps employees to assess for themselves how they can and want to work. Also which role they should therefore take on in the team.

4. Customized Development Pathfinder

The “design and deliver” principle, whereby career options are set out once in the company and then never touched again. Has long since been overtaken by reality. In this reality, we have self-confident employees who want to decide for themselves when and in which direction they want to develop. At their own pace and according to their individual goals. The Customized Development Pathfinder supports them in this. He knows what each individual is good at and also gives a nudge forward when employees fall short of their potential.

🎮 Colleague AI: … also knows exactly what knowledge and skills lie dormant in the workforce. It uses psychological analyses of employees’ needs and aspirations to create personal development plans. Our zortifyGROW AI, for example, measures stable personality traits and adaptable personality states and links them to professional development. It uses a unique combination of the “Big Five Personality Traits” model, the “Entrepreneurial Capital Personality” model and the “Counterproductive Behavioral Tendencies” model. Nerdy by nature – and very accurate. 🤓

5. Chief Asshole Detector

The colleague with the swear word in his title is actually an extremely sensitive soul. He senses vibrations as soon as a person enters the room and reads precisely between the lines. He is not impressed by fancy titles and CVs; he has X-ray vision, looks behind the façade and analyzes with a cool head whether someone could damage the heart of the organization. With the right decision, he can prevent bad hires and save the company from high costs and a negative vibe among the workforce.

🎮 Colleague AI: … truly cannot be accused of being guided by sympathies and bad previous experiences when evaluating a person. It unemotionally analyzes the spoken and written word. Based on the results, it shows whether an applicant has narcissistic traits that could severely disrupt the company and poison the culture. AI can already see what humans cannot detect even on second glance. And would have reliably spared the national economy the 14 percent of narcissists in management roles.

What’s to come

2023 was a super exciting year for companies and for HR in particular. Artificial intelligence has opened up many new opportunities to place the right people in the right positions at the right time. In the end, that’s what makes HR work so valuable and also so fulfilling, isn’t it? And the development is continuing at a rapid pace. The tasks of all the dream colleagues described above can already be performed by just one AI.

What does this mean for other, non-fictional jobs? Will human labor become largely obsolete in the future? – Certainly for certain tasks. At the same time, there will be many new tasks that will require human and machine intelligence working side by side to achieve the best results. In 2024, companies will be all the more challenged to find the right balance between the two. And for those organizations that have not yet had any contact with AI, it’s time to get to grips with the topic and get started step by step. We have described how this can be done in another post.

We hope that you can spend a lot of time with the people who are good for you in the new year. Both in your private life and at work. Thanks to AI technology, the chances of this are good.

With this in mind: Happy 2024!

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Artificial intelligence – we don’t need it. Many companies would probably have signed this sentence a year ago. ChatGPT had been released a few weeks earlier. Today, no company can avoid the question of what it is already using AI systems for. According to a Bitkom study, two thirds of companies consider AI to be the most important technology of the future. At the same time, 38 percent are concerned that they have missed the boat on new developments. They should know that it is not too late to start (and there is probably no alternative), because AI is here to stay and will change and shape almost every area of our working world in the coming years. Companies that are still unsure about how AI will affect their work can take a step-by-step approach. HR is an ideal area for this. I’ll come to why and how this can work in detail in a moment.  

No AI is not a solution either

The first step, however, is to overcome general fears of AI. This can be achieved by consciously questioning and adapting our own mindset. Companies can accept that they do not yet understand everything. They can allow themselves to learn and try out new things. It also helps to realize that they are probably already using AI as a matter of fact without even realizing it – see the following illustration:

These examples also show that organizations do not have to immediately purchase a large, complex software package costing several million euros. Instead, they can start small and proceed step by step. In that way, they can gradually open up areas in which AI systems can bring them measurable improvements. In the Bitkom study mentioned above, for example, more than half of the companies using Artificial Intelligence highlighted the reduction of human error as one of the greatest benefits, followed by the acceleration of processes.

Improving HR work with AI

Especially in HR, AI systems can make work easier and bring benefits for both HR experts and employees. The following areas of application are already showing good results:

1. AI diagnostics: personality tests and skills analyses to gain deeper insights into employees’ strengths and development potential.

2. Employee development: AI-supported learning and development programs that are individually tailored to employees’ needs and career goals.

3. Recruitment: tailored job advertisements, talent acquisition, including automated CV analysis and pre-selection of suitable candidates.

4. Process automation: time tracking, leave management and onboarding.

5. Performance assessment.

6. Employee engagement and satisfaction: AI analysis of employee feedback and sentiment to identify trends and proactively address needs.

7. Diversity management: AI-supported analyses to promote diversity and inclusion in the company.

Ask the right questions* in advance (*here they come)

To get started in your company, you should first ask yourself which of the areas mentioned above would benefit most from AI. What specific challenges in diagnostics, employee development, recruitment and other HR processes do you want to address? Define specific, measurable goals that you want to achieve with the help of AI.

In the next step, look for possible providers. Ask yourselves: What experience and references do the various AI providers have specifically in the HR context? And: How do the functions of the AI tools on offer cover our specific HR requirements?

After a pre-selection, look at the details

Then focus once again on your resources, goals and values. Weigh up the costs and benefits: what return on investment can you expect from using the AI tools? Ethical questions should also be discussed at this point at the latest: How do you ensure that the AI solutions comply with ethical standards and make decisions free from bias? – Many providers of AI systems have dealt intensively with the legal and ethical framework conditions in recent years and can provide support here.

Address resistance within the workforce and create a shared understanding of how Artificial Intelligence can be used in the company and where the (current) boundaries lie. At the same time, you can contribute to a better understanding of the technology and reduce fears with further training programs. (Spoiler: zortify also offers coaching on AI. 🤓) Give employees the freedom they need and encourage them to learn more about AI on their own. And finally: start small – with pilot projects and hands-on tools that don’t require time-consuming implementation and allow you to exit at any time. Start with one aspect of HR work, learn from the experience and then gradually expand the application as the technology benefits you.

Conclusion

The sudden rise and rapid development of Artificial Intelligence has overwhelmed many companies. But as with all new technologies, it’s perfectly okay not to be one of the first, the early adopters. But it is not good to permanently turn a blind eye to new developments and opportunities. Especially not if they benefit the company and the people who put their skills and time at the service of the organization. Find out what AI can do for you in specific terms. Try things out, reflect, adapt and, as in other areas of life, trust your common sense. It will be a good compass for you when dealing with AI and navigate you through the fascinating possibilities that new technology offers.

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