Predictive hiring: How HR can identify employee engagement during the interview

Predictive Hiring

And why brilliant resumes often lead to expensive hiring mistakes

The resume shines, the interview goes smoothly, the references seem flawless. But six months later, it becomes clear that although the new colleague is highly qualified, they have long since quit quietly. A classic mismatch that not only eats up salary and recruiting costs, but also destabilizes teams, strains customer relationships, and delays projects.

Gallup estimates the global cost of lack of engagement at $8.9 trillion per year. That’s almost nine percent of global GDP. Only 21% of employees are engaged at work, 62% do the bare minimum, and 15% actively work against their managers and teams. These figures illustrate that the problem does not begin on the first day of work, but already during the recruiting process. Many companies carefully check whether candidates can perform the tasks. However, the crucial question is: Will this person be really committed to the job?

What drives engagement

Engagement is not a “nice-to-have,” but rather the most important performance driver in modern organizations. Gallup and other studies identify three areas of relationships that have a significant impact on motivation, loyalty, and thus also results:

  1. Employees – managers: Trust, clarity, and meaning are crucial here. Up to 70% of the differences in employee engagement can be directly attributed to the manager.
  2. Employees – Colleagues: Teams with high engagement have 59% less turnover, even in organizations with generally high turnover rates.
  3. Employees – Customers: Engaged employees increase customer satisfaction by 10% and sales by up to 20%.

These relationships are not soft factors. They determine whether a project succeeds, whether a team sticks together, and whether customers remain loyal in the long term. Nevertheless, traditional interviews hardly capture factors that indicate a successful relationship on these three levels. A standard question such as “Are you a team player?” says nothing about whether someone can actually build functioning relationships in the work environment.

Personality as the key to engagement

Personality research has shown that traits such as conscientiousness, agreeableness, and low neuroticism scores (emotional stability) are reliable predictors of performance, loyalty, and customer focus. However, traditional questionnaires cannot measure these traits reliably. Instead, recruiters get:

  • Social desirability: Candidates know which answers seem “right.”
  • The interview persona: Applicants’ answers that reflect a deliberately constructed image rather than their authentic personality.

Companies feel secure, but the results are distorted – and bad hires are inevitable.

Language reveals engagement potential

Companies that want to make sure they get engaged employees rely on a thorough personality analysis of their applicants, using the latest AI tech and Natural Language Processing (NLP). Studies show that people can consciously control what they say, but not really how they say it. Choice of words, sentence structure, punctuation – all of these reveal initial signs of personality patterns that are difficult to conceal. Based on open-ended text responses that candidates formulate in a relaxed atmosphere at their desk, AI recognizes factors such as an increased risk of egocentrism or a strong orientation toward cooperation –differences that are crucial for assessing engagement potential long before it becomes apparent in everyday work. Important: Higher scores aren’t a reason to disqualify a candidate, but they give the interviewer important clues about what questions to ask during the job interview. 

Engaged employees accept leadership

An often overlooked aspect: commitment depends not only on how well a manager leads, but also on whether employees can recognize and accept good leadership. A study from 2021 shows that employees with high self-efficacy and openness remain more committed even under mediocre leadership, while others are quicker to withdraw. This means that it is not only managers who are responsible for commitment. The personality of the employees also determines whether leadership is effective. Those who accompany change constructively, place trust in others, and support decisions remain motivated longer, even in difficult environments. These qualities are critical to success, especially in demanding industries such as consulting or finance, where uncertainty and regulation are part of everyday life, or in the tech sector, where priorities are constantly shifting.

Employee engagement drives business success

The economic effects of high employee engagement in companies are measurable:

  • 37% higher productivity in highly engaged teams,
  • 23% higher profitability because motivated employees create better customer experiences,
  • 65% lower staff turnover.

This contrasts with the immense costs of hiring the wrong person. On average, this costs 1.5 to 3 times the annual salary and often runs into six figures for senior roles in IT, consulting, or finance. A more precise selection based on authentic personality profiles costs only a fraction of this. And usually pays for itself already by avoiding a single wrong hire.

From skill match to commitment match 

The crucial question for CEOs, HR executives, and recruiters today is no longer: Can this person do the job? But rather: Will they be engaged in doing it? AI-based personality analyses and the evaluation of open-ended text responses provide a valid answer to this question. These methods are difficult to manipulate and can be integrated into the recruiting process immediately.

Those who identify tendencies toward relationship skills in the three critical areas – with managers, teams, and customers. Before the first interview not only make better hiring decisions, but also strengthen the resilience and competitiveness of their organization.

Prof. Dr. Florian Feltes

Prof. Dr. Florian Feltes is co-founder and co-CEO of zortify and a forerunner in AI-supported HR innovation. Together with his team, he develops intelligent personality diagnostics and helps companies identify the perfect candidates—without expensive assessments and without bias. His vision: a world in which every company can effortlessly form high-performance teams and create work environments that allow human potential to flourish.

Prof Dr. Florian Feltes - Round
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EU AI Act: How smart companies are using regulations to outperform competitors

What HR Must Do Now. The EU AI Act has been in force since August 2024, and further compliance deadlines passed in August of this year. For companies that use AI tools in recruiting and human resources development, this means that the legal gray area is over.

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EU AI Act: How smart companies are using regulations to outperform competitors

What HR Must Do Now

The EU AI Act is getting serious. And that’s exactly where the big opportunity lies for companies that have their compliance under control. The first sanctions have been in place since February 2025. New regulations came into force in August. 

While many companies are still hesitating or relying on outdated tools, the pioneers can now extend their lead. This is because EU regulation separates the wheat from the chaff in recruiting: those who work with the right, compliance-ready providers can continue to take full advantage of AI. Those who have chosen the wrong partners are facing a problem – and should change course now. 

Costy consequences  

The EU AI Act provides for fines of up to €35 million or 7% of global annual turnover – whichever is higher – for violations of prohibited AI practices. Other violations can be punished with fines of up to €15 million or 3% of annual revenue, while providing false information to authorities can result in penalties of up to €7.5 million or 1.5% of revenue. The first sanctions have been in effect since February 2025. 

Important to know: HR teams bear full responsibility for compliance, even when using external AI tools. We show what this means in concrete terms and how companies can ensure they are well aligned. Detailed guidance on how to proceed can be found in the free white paper

Overview of deadlines: Action is required now   

The EU has set a gradual timetable for the implementation of the EU AI Act:  

  • February 2025: HR teams must be trained (deadline for AI skills training)
  • August 2025: Rules for general AI models come into force
  • August 2026: Full compliance requirements for all providers
  • 2027: Full enforcement of all regulations

The February deadline was already critical: Since then, HR teams have been required to be trained in AI. Companies that still fail to act now risk being non-compliant.  

Why AI in recruiting requires special attention 

The EU AI Act classifies AI systems into different risk categories. Tools for recruiting, performance evaluation, and HR decisions automatically fall into the high-risk category. This means stricter requirements: 

  • Transparency obligation: Companies must publicly disclose that they use AI in recruiting and how they do so. This applies to privacy policies as well as direct communication with candidates.
  • Human oversight: Automated decisions must never have the final say. There must always be a qualified person who can review AI recommendations and correct them if necessary.
  • Traceability: All AI decisions must be documented in such a way that they can be traced later, for example in the event of allegations of discrimination or regulatory audits.

What companies need to request of their AI providers   

One of the most common misperceptions is that “the provider is EU-compliant, so the company is too.” This is not true. Companies remain fully responsible and must actively request the appropriate documentation:   

  • Compliance documentation: Companies should request a complete overview of technical and organizational measures (TOMs). This includes bias mitigation, system security, and monitoring processes.
  • Technical documentation: HR teams need insight into the data governance structure, bias testing, and known system limitations.
  • Transparency procedures: Providers must deliver ready-made texts and processes that can be used to inform candidates about the use of AI.
  • Oversight mechanisms: It must be clearly defined how human review and correction of AI decisions work.
  • Data protection alignment: Companies must ensure that their own data protection policies accurately reflect how the AI tool processes personal data. Providers must supply appropriate text modules and processing details.

At Zortify, for example, customers receive a complete compliance package with all the necessary documents, transparency texts, and practical implementation aids to ensure smooth, legally compliant implementation. 

Governance structures: Tailored to every size of company 

The good news is that companies don’t have to reinvent the wheel. Depending on the size of the company, there are proven governance models: 

Small companies (up to 250 employees): A simple committee consisting of the HR director, compliance manager, and IT manager is sufficient. Semi-annual reviews and basic documentation are all that is required. 

Medium-sized and large companies: Here, an interdisciplinary team consisting of HR tech, legal, IT security, data protection officer, and CTO is needed. Quarterly reviews and 1-3 dedicated full-time positions for AI governance are the norm.  

Startups and micro-enterprises: Compliance is possible even with minimal resources. An HR manager plus a technical founder, plus external legal advice if needed, can meet the requirements. 

Incident management: When things go wrong   

Even the best preparation cannot protect against all problems. This makes well-thought-out incident management all the more important. Typical scenarios in the field of AI in HR:   

  • Data breaches: An AI tool accidentally displays data belonging to other candidates or is compromised by prompt injection attacks.
  • Discriminatory results: The AI systematically favors or discriminates against certain groups of candidates. Important: Different results are only problematic if they are based on bias, not on actual differences in performance.
  • System failure: The AI produces absurd results or crashes during critical recruiting phases. System failure: The AI produces absurd results or crashes during critical recruiting phases.

The emergency plan must contain clear time frames: Immediate measures within two hours, complete damage assessment within 24 hours, and in the case of data breaches, the GDPR reporting requirements apply within 72 hours. 

The costs of non-compliance  

Although reduced penalties apply to small and medium-sized enterprises and start-ups, the risk of fines far exceeds the costs of compliance. For most companies, the latter mainly consist of organizational measures. The investment in proper documentation, training, and processes is minimal compared to the financial and reputational risks of non-compliance.  

Practical immediate measures for companies

1. Create an inventory of all AI tools used—including those outside of HR. 

2. Request the aforementioned compliance documents from all providers. Set deadlines. 

3. Train HR teams (the deadline was already in February 2025) and document evidence.  

4. Revise privacy policy and communication with applicants. 

5. Establish review routines: At least semi-annual fairness and accuracy checks. 

Conclusion: Compliance as a competitive advantage 

The EU AI Act may seem like a burden at first glance. In fact, it offers companies the opportunity to position themselves as trustworthy employers. This is because candidates are becoming increasingly sensitive about how their data is handled and AI-based decisions are made.  

Companies that act proactively now will gain a competitive advantage: they can be transparent about their use of AI, offer candidates security, and at the same time benefit from the efficiency gains of the technology. 

It is only a matter of time before EU AI Act audits begin. But one thing is clear: not using AI in recruiting is not a solution. The results are too impressive, and the advantages for talent acquisition and retention are too significant. The coming months will determine who will stay ahead in the long term when it comes to using smart AI tools in recruiting, who is well prepared, and who will be caught off guard when the first audits begin.

Download the white paper now with the most important steps to take. 

Prof. Dr. Florian Feltes

Prof. Dr. Florian Feltes is co-founder and co-CEO of zortify and a forerunner in AI-supported HR innovation. Together with his team, he develops intelligent personality diagnostics and helps companies identify the perfect candidates—without expensive assessments and without bias. His vision: a world in which every company can effortlessly form high-performance teams and create work environments that allow human potential to flourish.

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Introverted top talents are being overlooked

– and companies are losing out 
Introvert Leaders

Extraversion has long been considered an indicator of leadership quality, which is why extroverted candidates have a clear advantage in selection processes. However, recent studies show that this preference often has little to do with actual performance. This highlights a key problem in executive search: traditional methods overlook introverted top talent. Companies are thus missing out on some of their strongest leaders.    

This bias can have serious consequences, especially in high-profile industries such as finance, insurance, and consulting, where strategic depth and risk awareness are crucial. 

The hidden pitfalls of traditional selection processes 

Assessment centers: performance over substance 

The problem lies in the DNA of traditional assessment procedures. Studies show that 60% of interviewers make their decision about candidates within the first 15 minutes, and 5% even within the first minute. These snap judgments are inevitably based on superficial factors such as charisma, eloquence, and “executive presence” — qualities that favor extroverted candidates. 

Assessment centers further reinforce this bias: in group discussions, the louder voices naturally dominate, while thoughtful contributions are lost. What is considered assertiveness is often just another form of information processing. 

The cultural fit illusion 

Harvard professor Youngme Moon sums it up: “Soft stuff” is often just a euphemism for bias. People hire individuals who are similar to them, who they feel comfortable with, who look, act, and speak like them.  

The supposed “cultural fit” thus becomes a gateway for similarity bias. Introverted candidates are rejected as “unsuitable,” even though they may be professionally and strategically superior to extroverted applicants. 

Network effects reinforce homogeneity  

A study of 123 German executive search consultants revealed a significant in-group bias: male headhunters unconsciously favored male candidates. Comparable mechanisms also operate among extroverts: those who are well connected and skilled at marketing themselves are more likely to be “discovered,” regardless of their actual performance. 

What companies are missing out on      

Strategic advantage in volatile times     

Current research also shows that introverted leaders excel in “intellectual stimulation” and “empowering leadership,” leadership styles that offer key advantages in complex, dynamic markets.      

These qualities are highly valued in the sometimes heavily regulated industries in the DACH region. Examples:   

  • Finance & insurance: Thorough risk analysis and strong compliance awareness
  • Consulting: Sustainable solutions instead of short-term quick wins
  • All industries: Effective crisis management through prudence instead of actionism

The self-awareness advantage 

A Korn Ferry analysis of 486 companies with 7,000 employees revealed that organizations with weak financial performance had executives with 20% more “blind spots” and a 79% higher likelihood of low self-awareness.  

Introverted leaders tend to have greater self-awareness, a competitive advantage that translates directly into business performance. 

Leadership of the future  

Other studies have found that introverted leaders are better than extroverted ones when it comes to leading proactive teams. In a working environment where initiative and empowerment are crucial, managers who are perceived as “reserved” prove to be more effective.  

AI-supported solution: Objectively assessing personality potential  

The limits of human assessment  

The figures should make companies pay attention: 48% of neurodivergent people report in the “Neurodiversity at Work Report 2024” that they find recruitment processes unfair and biased. This is a group that often exhibits introverted characteristics.  

The problem becomes even more apparent in blind hiring: it increases the likelihood of women being hired by 25 to 46%. This shows how strongly superficial impressions influence hiring decisions and systematically disadvantage people. Training on unconscious bias is of little help: 48% of HR managers still admit that bias influences their decisions. 

Data-driven alternatives  

The solution lies in objective, AI-supported personality analysis. It gives decision-makers a truly realistic first impression of a candidate. Within a very short time, AI tools can use the extent of certain personality traits to predict expected business performance and teamwork.

Specific advantages:  

  • Objective evaluation: Intelligent hiring assistants measure competence rather than communication style.
  • Predictive analytics: They predict leadership success based on empirical data.
  • Bias reduction: Modern, ethically developed AI systems can eliminate human bias in candidate selection.

Integration into existing processes 

Important to note: AI does not replace human evaluation, but rather complements it intelligently. While traditional methods rely on subjective first impressions, data-driven assessments can reliably predict actual leadership competence, regardless of personality type. 

Recommendations for HR and C-level executives 

Short-term measures: 

  • Critically examine bias training: Implement structured processes instead
  • Diversify assessment formats: Use written analyses and structured one-on-one interviews
  • Make evaluation criteria more objective: Less “cultural fit,” more measurable skills, and the courage to embrace “cultural add.”

Investing in AI-supported tools pays off by reducing the costs of bad hires while increasing leadership quality and team satisfaction.     

Conclusion: The silent paradigm shift    

The future should belong not to the loudest, but to the most capable leaders. Introverts often have skills that are needed in the modern workplace. Leadership research shows the measurable advantage of introverted leadership in proactive teams, i.e., those that perform at their best in demanding and rapidly changing environments. So it’s worth keeping your eyes and ears open, making the nuances audible, and reading between the lines. AI technology makes it easy for you and reliably ensures that the right people end up in the right positions.   

Prof. Dr. Florian Feltes

Prof. Dr. Florian Feltes is co-founder and co-CEO of zortify and a forerunner in AI-supported HR innovation. Together with his team, he develops intelligent personality diagnostics and helps companies identify the perfect candidates—without expensive assessments and without bias. His vision: a world in which every company can effortlessly form high-performance teams and create work environments that allow human potential to flourish.

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New Leadership - Charismatic candidates

In the first few weeks of this year, 222 CEOs resigned. A record since surveys began in 2002 and 14% more than in the previous year. What is particularly alarming is that 19% of successors were only appointed on an interim basis, compared to just 6% at the start of 2024. 

These figures are not just a symptom of political uncertainty, but an expression of a deeper problem: HR professionals often choose the wrong personality types when hiring executives. The fascination with charismatic, extroverted candidates leads to personalities with high self-presentation skills reaching top positions – often at the expense of character and substance. 

The lure of first impressions 

The Childhood Leadership Study of 2025 already showed that in 96% of classes, children with a strong self-expression are chosen as leaders. This pattern continues in professional life. Charismatic candidates shine in job interviews, appear self-confident, inspiring and present convincing visions. Meta-analyses confirm this: Especially in application and selection processes with strangers, such personalities are systematically preferred. 

Charles O’Reilly from the Stanford Graduate School of Business warns: 

“We see the 10% of self-promoters who succeed and call them visionaries. We ignore the 90% who fail and do damage.” 

This effect reminds us of fast, aggressive brands like Shein or Temu: shiny promises, quick wins, but often with unseen costs and long-term damage. 

Introverted beats loud 

Studies confirm that introverted CEOs are more successful in the long term than their extroverted colleagues. These quieter leaders make more considered decisions and act more sustainably. Nevertheless, many selection processes still favor the opposite: loud, shiny, extroverted. 

The short-term effect is tempting, and yes, sometimes legitimate in terms of quick success: A charismatic candidate can, for example, inspire stakeholders, generate momentum and attract media attention. In the long term, however, they often lack strategic depth, genuine team orientation and the ability to maintain calm and foresight even in difficult phases. Impulsive decisions or risky prestige projects lead to higher fluctuation, declining trust and often to financial losses and damage to the company’s image. In the medium term, the initial “gain” turns into a painful “pain” for the entire organization. 

The true cost of bad hires 

According to McKinsey and Kienbaum, bad hires in management positions can cost up to three times the annual salary. For C-level roles, these losses quickly add up to millions. In addition, there are serious follow-up costs that are difficult to measure: toxic corporate cultures, increasing fluctuation, risky takeovers or manipulated share buybacks. 

All of this not only reduces company performance, but also jeopardizes the trust of employees, investors and markets, with long-term consequences for reputation and competitiveness. 

Young executives in constant self-promotion mode 

Our 2021 study for Harvard Business Manager with almost 10,000 German participants shows that self-promotion-oriented tendencies are widespread among German managers. Young executives are particularly likely to succumb, exacerbated by social media and the trend towards personal branding. Three critical patterns stand out: excessive self-centeredness, impulsive risk-taking behavior and strategic manipulation to assert one’s own interests. These developments clearly show how important alternative selection methods are for companies. 

AI instead of gut feeling 

Traditional assessments are reaching their limits here. They are usually based on self-assessments, a playing field in which self-promoters are particularly adept. NLP-based analyses (Natural Language Processing) take a different approach: they work with candidates’ open text responses and uncover unconscious language patterns that allow conclusions about key personality dimensions. This makes manipulation much more difficult, while at the same time providing a deeper, more objective assessment. 

Wheel chart

Such approaches not only help in the selection of new leaders, but also in the further development of existing top managers. They provide a sound basis for coaching, succession planning and long-term cultural development that goes far beyond mere recruitment decisions. 

Character as a competitive advantage 

Companies that rely on objective, technology-supported personality analyses at an early stage gain more than just security when filling key roles. They create a corporate culture in which character, integrity and long-term thinking count. This creates a real competitive advantage: teams work together with greater trust, strategic risks are reduced and the retention of key performers increases. 

In the end, it’s not about devaluing charisma. Rather, it is about combining it with character, substance and foresight. This is the only way for companies to ensure that their managers not only shine in good times, but also provide orientation, create trust and ensure stability in times of crisis. 

Prof. Dr. Florian Feltes

Prof. Dr. Florian Feltes is co-founder and co-CEO of zortify and a forerunner in AI-supported HR innovation. Together with his team, he develops intelligent personality diagnostics and helps companies identify the perfect candidates—without expensive assessments and without bias. His vision: a world in which every company can effortlessly form high-performance teams and create work environments that allow human potential to flourish.

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AI is neither all good nor all bad. Used correctly, it can improve the lives of many people in general and working life in particular. New opportunities are opening up in HR recruitment and development in particular, without people being ” sorted out ” or replaced by technology. Let’s take a look at what is important for a fearless, constructive and responsible approach to AI in HR.

The best teams are not made up of clones!

Cultural Add

Cultural fit has long been considered the gold standard in recruiting. The idea: if you fit perfectly into the team, you will automatically be more successful. But what was intended as a quality feature is increasingly turning out to be a brake on innovation. The problem is obvious: teams that think too similarly confirm each other’s views. They overlook risks, miss market opportunities and develop solutions that only work for people like themselves. The McKinsey Diversity Report of 2023 confirms this: Companies that embrace diversity are 39% more likely to outperform those with little to no diversity efforts. 

Even more serious: cultural fit is often unconsciously confused with demographic similarity. The result is homogeneous teams that work together harmoniously but remain blind to their own blind spots. 

Cultural Add: The key to real performance 

Cultural Add reverses this logic: Instead of asking “Does this person fit in with us?”, the crucial question is: “What do they bring to the table that we don’t already have?” 

The difference is fundamental. While cultural fit rewards uniformity, cultural add promotes productive friction between different perspectives. Studies show that cognitive diversity arises from the complex nature of our brains. Different regions of the brain are activated depending on the thinking style, and people with different experiences use these regions differently. 

Using opposites sensibly 

Does Cultural Add mean chaos instead of collaboration? – Not at all. At the same time, diversity alone does not guarantee success. The ability to orchestrate different perspectives in a meaningful way is crucial. Successful Cultural Add teams are based on a solid foundation. Google’s “Project Aristotle” proves this impressively: after analyzing over 180 teams, psychological safety proved to be the most important success factor, i.e. the feeling of being able to take risks without fear of negative consequences. Only when all team members feel safe to contribute their perspectives can the full potential of diversity be utilized. 

On this basis, teams can share common core values such as integrity, quality awareness and customer focus, while at the same time consciously differing in their approaches An analytical perfectionist complements a creative fast mover. The cautious risk manager grounds the courageous innovator. 

From intuition to intelligence: data-based team building 

However, the conscious orchestration of different personalities and perspectives requires new recruiting strategies. Instead of relying on sympathy or gut feeling, companies need objective tools to analyze personality profiles and identify potential synergies. 

Modern, AI-supported personality analyses make it possible to look behind the façade. They reveal hidden strengths, identify complementary traits and predict how different personality types ideally complement each other. 

For example, an introverted strategist with strong analytical skills could be an excellent match for an extroverted sales talent – even if the two appear completely different at first glance. Algorithms recognize potential where human intuition fails. 

The ROI of diversity 

The numbers speak for themselves: diverse teams make 87% better business decisions than individuals. Inclusive companies are 1.7 times more likely to innovate and generate 2.3 times more cash flow per employee. The reason: such teams ask better questions, develop more robust solutions and understand their customers better. 

The future belongs to the brave 

Cultural add requires the courage to leave comfort zones, endure productive friction and invest in people who tick differently. But companies that take this step will be rewarded: with teams that not only perform better, but are also more resilient, future-proof and attractive to talent. 

The first step: rethink your next hire. Don’t look for a clone of your best employees. Use smart technology to specifically look for someone who completes the team – even if it makes the next team meeting a little more lively 😉 

Prof. Dr. Florian Feltes

Prof. Dr. Florian Feltes is co-founder and co-CEO of zortify and a forerunner in AI-supported HR innovation. Together with his team, he develops intelligent personality diagnostics and helps companies identify the perfect candidates—without expensive assessments and without bias. His vision: a world in which every company can effortlessly form high-performance teams and create work environments that allow human potential to flourish.

Prof Dr. Florian Feltes - Round
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Your Gut Feeling is Gutting Your Talent Pipeline  Image

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AI is neither all good nor all bad. Used correctly, it can improve the lives of many people in general and working life in particular. New opportunities are opening up in HR recruitment and development in particular, without people being ” sorted out ” or replaced by technology. Let’s take a look at what is important for a fearless, constructive and responsible approach to AI in HR.

EU AI Act – HR Must Deliver on AI – But Not Alone Image

EU AI Act – HR Must Deliver on AI – But Not Alone

As the possibilities of AI grow, so do the requirements for the careful and responsible use of AI systems. The EU AI Act, which has been gradually coming into force since February of this year, places greater responsibility on companies and makes AI expertise not just a competitive advantage, but a legal obligation.

Your Gut Feeling is Gutting Your Talent Pipeline

A New Way of Looking at HR Efficiency
Smart recruiting with AI - Your Gut Feeling is Gutting Your Talent Pipeline

We think we’re thorough. Our HR processes are well thought-out. Our hiring decisions are sound. Research says: We’re wrong. 

The uncomfortable truth: our brain makes a judgment about our conversation partner in the first few seconds. Even if the final decision for or against an applicant is not made until minutes later, the course has already been set. The rest of the interview? – Simply a search for confirmation. We are not looking for the best candidate, but for reasons why our gut feeling is right. 

No second chance to make a first impression? – There is! 

The mantra “There is no second chance for a first impression” is not only wrong in recruiting, it is reckless. It justifies hasty gut decisions and superficial judgments. The fact is that first impressions are almost always incomplete and often irrelevant. 

What happens in our heads in the first few seconds? We evaluate voice, appearance, handshake, eye contact – all things that have little or nothing to do with job performance. 48% of HR decision-makers openly admit that prejudices influence their decisions. Realistically, this figure is closer to 100%. 

The next 30 minutes of the interview are therefore not much more than a stage for confirmation bias. 

  • The brilliant but introverted developer? “Not present enough.”
  • The experienced executive with an accent? “Not a strong communicator.”

This is not an exception. This is the system. The pressure is real, as is the self-deception. Time-to-hire is tracked, jobs actually have to be filled yesterday, and we tell ourselves we are thorough. But we are not. Above all, we are thoroughly biased. 

AI breaks the cycle 

While we supposedly carefully screen applicants, modern AI analyzes hundreds of relevant personality traits in a focused, precise and objective manner within the very same time period. What our intuition compromises, AI perfects in milliseconds. It gives every candidate a real second chance. Based on data, not prejudice. While we search for confirmation, AI emotionlessly scans what really counts. 

When humans reach their limits and machines shine 

Our brains are still optimized for the Stone Age, i.e. for quick friend-foe recognition, not for differentiated HR decisions in a globalized knowledge society. Unconscious Bias is an evolutionary feature, not a bug that can just be fixed. 

What AI can do in seconds: 

  • Analyze hundreds of personality dimensions 
  • Assessment without cultural bias 
  • Consistent standards for all applicants 
  • Prediction of job performance based on valid data 

What people do in the same time: 

“He seems likeable.” 

“She doesn’t fit into the team.” 

In short: we fall for our prejudices based on skin color, gender, accent or similarities between the applicant and our own CV. The “cultural fit” is often just a cover for these unconscious prejudices. Universities attended together, familiar names, similar biographies: all this acts as a filter. Unfortunately, it is the wrong one. 

The question to CEOs: Would you invest like this? 

Would you invest a million euros on gut feeling? Without data, without analysis, without risk assessment? 

No? 

So why do you make the most important business decision – the one about your staff – like an impulse purchase? Every bad hire costs you 1.5 to 3 times the annual salary. In the case of managers, it can quickly add up to over €200,000 per mistake. Human intuition” is the most expensive poor decision your company makes. You invest six-figure amounts in employer branding, while your selection process scares top talent away. Rejected applicants talk to each other. Bad experiences go viral – and cost you the next generation of talent. 

AI does not make us unemployed, it makes us better. 

AI does not replace people. It replaces bad human decisions. A good AI analyzes more data in seconds than we humans do in an entire conversation. Not because it is smarter, but because it is not distracted. Modern AI-supported diagnostics filter precisely, efficiently and objectively. NLP technology recognizes personality patterns and skills while we are still thinking about whether the handshake was firm enough. The game changer: when AI makes the pre-selection, we are no longer evaluating “a person”, but “a promising candidate who has already been objectively assessed”. Our bias no longer has a chance to shape the conversation from second one. 

Strategies for the AI-supported revolution in recruitment 

The human touch is out of place in recruiting. The new generation of applicants expect fairness, not folklore. They want to be evaluated for what they can do, not for how familiar they seem to us. Companies with AI-supported recruiting will therefore systematically attract the better talent. 

Here’s how you can get started: 

  1. Objective data instead of subjective impressions: Define measurable criteria for each role. Let AI evaluate before humans decide. 
  2. Intelligent pre-selection = efficiency: Use AI for initial, data-based filtering. Then you can concentrate 100% on the really promising candidates. This way, you combine machine precision with human judgment. The process is quick and thorough. 
  3. Feedback loops: Measure the success of your hires after six months. Which of your gut decisions has proven successful? (The truth might hurt).
  4. Diversity by design: Integrate fairness directly into the process. Good AI is not neutral, it is intentionally inclusive. Choose providers wisely. To the checklist  

The moment of truth 

We have two options: 

Option 1: Carry on as before. Convince ourselves that 30 years of recruiting experience is more objective than data-based analysis. Watch systematic bias cost our team millions and drive the best talent to the competition. 

Option 2: Gather the courage to recognize our own limitations and use AI for what it is: a tool that does in seconds what humans overlook in minutes. Objective pre-selection that gives every candidate the fair chance he or she deserves. 

The decision is up to us. But if we now make it based on gut feeling again, we have not yet understood this text. 

Prof. Dr. Florian Feltes

Prof. Dr. Florian Feltes is co-founder and co-CEO of zortify and a forerunner in AI-supported HR innovation. Together with his team, he develops intelligent personality diagnostics and helps companies identify the perfect candidates—without expensive assessments and without bias. His vision: a world in which every company can effortlessly form high-performance teams and create work environments that allow human potential to flourish.

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Sandra, Spuerkeess is known for stability and tradition. At the same time, you focus heavily on innovation in your HR strategy. What was the reason for rethinking the topic of internal mobility? Spuerkeess has always successfully adapted to changing market conditions.

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A New Way of Looking at HR Efficiency
CHRO Budgets Benchmarks

The figures are clear – and alarming: While IT and Marketing are allocated 3.14% and 7.5% of turnover, HR receives a mere 0.8% on average. This is shown by the current Gartner study “2025 CHRO Budget Benchmarks”. At the same time, one HR FTE (Full Time Equivalent) looks after an average of 58 employees, with increasing demands in recruiting, development, digitalization and cultural transformation. Having said that, a third of companies are planning to cut their HR budget further in 2025 – despite a growing pressure to take action.   

The crucial question is therefore no longer just how much HR companies can afford, but in what and in whom they invest.   

  • In more staff or better technology?
  • In processes or in skills?
  • In administration or in value creation

Those who make the wrong budget decisions today not only risk operational weaknesses but also miss the opportunity to position HR as a real lever for business success.  

Why quantity masks true HR performance  

When we talk about HR budgets, the aforementioned key figure “employees per HR FTE” plays a key role. How many employees an HR specialist is responsible for full-time is considered an indicator of the productivity of the HR department. The Gartner study shows significant differences between industries. While the ratio is 80 employees per HR FTE in the healthcare and pharmaceutical sectors, for example, it is 56 in technology and telecommunications and 59 in finance.   

A high ratio of employees per FTE is not necessarily negative from a business and cost perspective. Rather, it can indicate an increased need for specialized HR support or complex processes. Conversely, a supposedly “efficient” HR department with many employees per HR manager can cause high costs in the long term – for example due to bad hirings or above-average staff turnover, which in the worst case can cost up to two years’ salary. 

What the key figures do not show  

HR is also a strategic partner for business development, especially in highly knowledge based industries. Investments in talent analytics, employer branding or strategic HR planning are essential, but are not directly reflected in key figures such as the FTE ratio. Nevertheless, their value is enormous. The Deloitte study Human Capital Trends 2024 emphasizes that HR must increasingly act as a “change activist”, for example in cultural change, leadership development or the integration of AI. At the same time, many HR teams are struggling with a chronic shortage of resources and overwork, which is slowing down strategic work.   

The role of AI: a leap in quality instead of an increase in HR staff  

Increasing demands, decreasing budgets – this is where the strategic use of technology comes into play. The Gartner study emphasizes that HR leaders are increasingly investing in HR technologies. AI systems in particular offer the opportunity to significantly improve the quality of HR work without having to increase the number of staff in the HR department. AI-supported tools improve precision in recruiting, for example by identifying the best candidates for complex roles and sorting out unsuitable applicants at an early stage. AI helps to reduce bias, i.e. decisions that are based on subjective assessments rather than objective data.  

A fair, fast and data-supported selection process is particularly important in one of the most cost-intensive areas of HR – recruiting. Assessment centers alone often consume tens of thousands of euros and tie up capacities that are then missing for strategic tasks such as workforce planning or employee development. What many people tend to overlook: The employee experience does not end with onboarding. It has a significant influence on whether talent stays in the long term. 

Maintain quantity, increase quality  

According to Gartner, 34% of CHROs are planning to invest in HR technology and 28% in people analytics. These priorities are right – under one condition: The tools must support HR employees instead of replacing them.  

Ideally, they enable:  

  • The replacement of time-consuming and expensive assessment centers with automated, data-based and fast selection processes,
  • More objective and accurate decisions about candidates thanks to well-conducted analyses,
  • New scope for HR to install strategic and long-term workforce planning.

Conclusion: Focus on the impact, not just KPIs 

KPIs such as “employees per HR FTE” can be a useful starting point, but they alone are not enough to evaluate the effectiveness and efficiency of HR. In demanding industries, the focus must be on the quality of HR work. The strategic use of AI can help to improve recruiting quality, reduce the workload of executives and thus make a measurable contribution to the company’s success, regardless of whether the FTE ratio is above or below the industry average. Ultimately, it is not only how many employees a HR professional is responsible for that counts, but rather how well they support employees and promote their development. And whether they have the capacity to shape their work with a long-term perspective instead of rushing from one short-term vacancy to the next. The systematic use of AI can make all the difference here.   

Modern HR work should aim to attract and develop excellent employees through a well-founded strategy and excellent processes, without necessarily building up more HR resources. The focus should be on what good HRM really needs: AI-competent, strategically thinking and empathetic people who have enough headspace to understand and master technology and use it to recognize and develop the full potential of (potential) employees.

Prof. Dr. Florian Feltes

Prof. Dr. Florian Feltes is co-founder and co-CEO of zortify and a forerunner in AI-supported HR innovation. Together with his team, he develops intelligent personality diagnostics and helps companies identify the perfect candidates—without expensive assessments and without bias. His vision: a world in which every company can effortlessly form high-performance teams and create work environments that allow human potential to flourish.

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Doubts about AI expertise in the HR sector   

According to a recent Gartner study, CEOs have massive doubts about the AI skills of their management teams: although 77% of CEOs are convinced that artificial intelligence is fundamentally changing the economy, they lack confidence in the ability of their top managers to shape this change.   

Most affected: HR management and HR teams. Less than one in ten CEOs trust their CHROs to have sufficient expertise to make informed HR decisions with AI. This means that the very department that has a direct influence on people and their career paths. And therefore on the long-term success of the company – is at risk of being left behind. Because one thing is also clear: AI is here to stay. Companies that know how to use it properly will achieve massive efficiency gains and thus competitive advantages.  

Does HR need to be able to decrypt code?  

No, of course not. HR work will remain human-centered in the future. The use of AI systems helps HR to focus even more on individual people and their further development within the organization. And on the development of their own strategic role in the company.    

So why is AI expertise in HRM so crucial?   

  1.  Anyone who understands how AI algorithms work can better interpret their results, for example with regard to the evaluation of certain candidates, recognize possible biases and make informed decisions.   
  2. The EU AI Act classifies AI systems as “high-risk systems” in many areas of HR work. This entails strict requirements for transparency, data quality, human oversight and IT security. Without any AI expertise, it is almost impossible to respond adequately to these requirements and avoid legal risks.   
  3. One of the biggest risks when using AI in HR management are algorithms that reproduce existing biases in data. Ideally, AI expertise enables HR managers to recognize, evaluate and counteract discriminatory results. At the very least, it enables them to ask the right questions and hold their AI provider accountable (we’ll come to this in more detail in a moment). 
  4. Employees and candidates must be able to trust that AI systems are used fairly and transparently. If HR has the relevant skills, this creates trust and acceptance.   
  5. A deep understanding of AI makes HR teams the much-discussed drivers of change, for example by optimizing processes. 

Checklist for HR: Is your AI provider EU-ready?  

The proactive development of AI expertise is therefore not a luxury. But a necessity in order to remain fit for the future and ensure that the company remains competitive. And it is now also required by law. However, this does not mean that HR professionals have to become the new nerds. Yes, data analysis skills are undoubtedly becoming more important.  

In the end, however, the key to AI competence does not lie in endless training courses and a deep understanding of technology, but in the selection of a reliable AI provider. One that knows exactly what the company’s requirements and questions are and at the same time complies with the regulations of the EU AI Act. One that not only provides a tool, but also acts as a trusted partner and takes companies by the hand, for example through:

  • Workshops and coaching sessions in which HR teams learn how the AI tool works,
  • Technical documentation & legal support in accordance with the EU AI Act,
  • Support in interpreting the results provided by the AI.

With Zortify, we have developed a comprehensive checklist of questions that you can and should ask your AI providers to be on the safe side. You can download it here

Ask the right questions!  

A good AI provider takes a huge burden off HR’s shoulders by anticipating all organizational and legal requirements and providing appropriate solutions. HR therefore does not need to know all the answers in detail regarding the functional logic of AI systems, but it does need to know where to find them: namely with the AI provider.   

In order to fully exploit the advantages of AI in the future, however, it is not only legal compliance that is required, but also an understanding of how AI significantly influences roles and processes in HR work. This is also AI competence. With this knowledge, you can make the leap from HR administration to the strategic, data-based HR work of the future.   

The following questions can help you get there: 

Strategy & risk assessment  

  • Have we determined the AI risk status of our HR applications?
  • Has an internal AI strategy with responsibilities been established?

Qualification & training  

  • Does our HR team have basic AI knowledge?
  • Is there a structured training program?

Data protection & compliance

  • Is there a responsible person who coordinates our compliance efforts with regard to AI in HR (e.g. HR, legal department or data protection officer)?

Transparency & control  

  • Is human control and decision-making authority ensured?
  • Are all those affected (employees, candidates) informed about the use of AI?

Choice of provider  

  • Do we work with AI providers who can guarantee scientifically sound and transparent development of their systems and understand our compliance requirements?

A complete checklist including the most important aspects of the EU AI Act, questions to reflect on your own AI readiness and questions that companies should ask their AI provider can be downloaded here. 

And then it’s time to keep at it! Building AI expertise in HR is not a one-off task, but a continuous process. With the right knowledge and the right partners, companies can not only master the AI revolution in HR work, but actively shape it and thus find and retain the right talent.    

Prof. Dr. Florian Feltes

Prof. Dr. Florian Feltes is co-founder and co-CEO of zortify and a forerunner in AI-supported HR innovation. Together with his team, he develops intelligent personality diagnostics and helps companies identify the perfect candidates—without expensive assessments and without bias. His vision: a world in which every company can effortlessly form high-performance teams and create work environments that allow human potential to flourish.

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Sandra, Spuerkeess is known for stability and tradition. At the same time, you focus heavily on innovation in your HR strategy. What was the reason for rethinking the topic of internal mobility? 

Sandra: Spuerkeess has always successfully adapted to changing market conditions. However, in today’s working world, it is not just a question of adapting, but of actively helping to shape things. The impulse came from the realization that our greatest potential lies in the people who already work for us. If we help them to develop further and explore new paths within the organization, we not only strengthen employee loyalty, but also the innovative strength of the entire bank. 

You have decided to work with Zortify. What convinced you to integrate this particular technology into your HR processes? 

It was important to us that any technological solution reflected our values: human, ethical and future-oriented. Zortify convinced us with an approach that combines personality diagnostics with scientific depth and ethical AI. It’s not about automating decisions, but about empowering people to understand themselves better – and to develop career prospects that suit them. 

You once said that your aim is to shape internal mobility as a “culture” and not just as a “process”. What exactly do you mean by that? 

A process is something you carry out. A culture is something you live. We wanted to do more than just publish internal job advertisements. We wanted our employees to develop the courage to try out new things, see themselves differently and perhaps discover unexpected talents. The job fair was a catalyst for this, Zortify a mirror. Together, a space was created in which development was possible – at eye level and with appreciation. 

How has the combination of AI diagnostics and human interaction changed the role of your HR department? 

Our HR department has become more visible, more strategic and stronger as a result of this project. It now acts not only as an administrator of resources, but also as a partner at eye level – for executives, for talent and for management. The use of technology in combination with our human-centered mindset has given it new weight. You could say that HR has become an enabler of transformation for us. 

You are now also using Zortify in other areas. How is this changing your HR practices? 

Zortify provides us with new perspectives in the selection of talent, in high-performance teaming, and in leadership development. The objectivity of the data helps us to make better, more holistic decisions. And it helps our employees to think about themselves in coaching sessions or development meetings – in depth, not just on the surface. 

Many companies are discussing the use of AI these days. What advice do you have for other managers when dealing with this topic, especially in the HR context? 

My advice would be: don’t see AI as a trend, but as a tool. And don’t use it to replace people, but to strengthen them. The technological solution must fit your corporate culture, not the other way round. At Spuerkeess, technology is a means to enable more humanity and individuality, not less. 

What surprised or impressed you most in this project? 

The openness of our employees. Many of them took the opportunity to reflect with great curiosity. They showed the courage to think about new roles and develop themselves further. This has shown me once again: If we trust our people and have confidence in them, they grow beyond themselves. And that is exactly what a future-proof organization needs. 

How Spuerkeess is rethinking the role of HR in banking  

 Putting people at the center with AI
Putting people at the center with AI - How Spuerkeess is rethinking the role of HR in banking

With a bold, technology-supported approach to internal mobility and people development, the bank Spuerkeess is setting new standards in employee retention. At the heart of this is an HR initiative that has not only changed processes, but also created a new culture. 

“Our vision was clear: internal mobility should not just be an administrative act, but a living part of our corporate culture,” says Sandra Schengen, Head of HR & People Management at Spuerkeess, describing the motivation behind the project. The aim was not only to give employees transparency about open roles. But also to show them real development opportunities regardless of their current position. 

A first milestone on this path was the bank’s internal job fair launched in 2024. Where over 250 employees, 25 participating departments and more than 30 workshops turned the event into a lively marketplace for exchange, inspiration and perspectives.  

Linking existing potential and roles with the help of AI  

A central element of the project: employees were able to use AI-supported personality diagnostics to gain new insights into their individual personality traits and corresponding skills. Characteristics such as resilience, agility, self-efficacy and entrepreneurial thinking were made visible. Not as an assessment but as an invitation to reflect. Many participants took the opportunity to compare the results specifically with career paths within the bank. Employees found the combination of technological precision and an open and engaging exchange to be particularly valuable. 

The new strong role of HR  

However, the initiative not only had an impact on employees. It also strengthened the HR department itself. It is now more visible, strategic and modern than ever before. The systematic integration of AI has enabled HR to position itself as a partner at eye level for managers and employees. 

From trade fair to approach 

What began as a one-off event has become the starting point for a broader change. Today, Spuerkeess uses AI-based personality diagnostics in key areas: in the selection of new talent, in leadership development and in coaching. What is important here is that the technology is used responsibly and in line with the bank’s values. That is: data protection-compliant, ISO-certified and EU-hosted. 

Technology that serves employees 

What Spuerkeess is showing with this initiative can also serve as inspiration for others. It’s not about digitalization and AI for its own sake. It’s about using the right tools and the right attitude to create a more human, appreciative working environment in which people can make the most of their personalities and skills. “When we give our employees the right tools, they not only discover new roles, they also discover themselves. And that’s where the real potential of our time lies,” says Sandra Schengen.  

Prof. Dr. Florian Feltes

Prof. Dr. Florian Feltes is co-founder and co-CEO of zortify and a forerunner in AI-supported HR innovation. Together with his team, he develops intelligent personality diagnostics and helps companies identify the perfect candidates—without expensive assessments and without bias. His vision: a world in which every company can effortlessly form high-performance teams and create work environments that allow human potential to flourish.

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