For companies, 2025 means less disruptive change and more evolutionary growth. In view of the overall social situation, especially with the rise of populism, the pressure is increasing not only economically, but also in interpersonal relationships. This is where companies need to take a closer look. It is more important than ever to fill key positions with people who can cope with the increasing demands both professionally and personally. AI can help with this.  

1. Building Resilient Mid-Level Leaders 

Many people are starting the new year potentially overwhelmed. According to a Gartner survey, three-quarters of HR managers feel overburdened by the expanding range of their responsibilities. The development of middle management often gets neglected, yet mid-level leaders are crucial in initiating, communicating, and supporting necessary innovations. 

Therefore, in 2025 companies should focus more on developing leadership skills. AI technologies can support this by analyzing specific traits such as entrepreneurial thinking, resilience, or optimism in employees, and deriving targeted learning and development programs. 

2. Investing in Long-Term HR Tech 

More than half of HR leaders report that current technologies do not meet today’s or future requirements. The focus should not just be on efficiency but on supporting HR staff in their development. 

A shift in thinking is needed: investments in smart technologies should aim to strengthen the transformative role of HR. The Gartner Hype Cycle shows that technologies go through various phases before they can be productively utilized. 

Realistic management of these phases helps in setting expectations and developing sustainable solutions.

Gartner Hype Cycle

Currently, many companies are still between phases 2 and 3. Expectations for AI-powered tools are both highly positive and negative. At the same time, it is becoming increasingly apparent that AI alone does not offer a comprehensive solution. While this may disappoint some, it presents an opportunity for HR professionals whose task is to identify and foster human potential. They can skip the “trough of disillusionment” and proceed directly to the “slope of enlightenment.” 

However, support from number-driven stakeholders is crucial. Investors and decision-makers must be willing to invest not only in time and cost savings but also in transformative technologies and learning and development programs for HR staff. 

3. Cultural Change Bottom-up – With Change Influencers 

Top-down mandated innovations often face resistance and contribute to “change fatigue.” After disruptive changes, it is essential to allow time for evolutionary stabilization. New things must “restabilize, lose their surprise effect, and normalize,” as sociologist Armin Nassehi puts it regarding successful societal change processes. 

In a corporate context, “change influencers” can help foster changes. These employees with strong peer networks drive innovations forward. AI-powered tools can help identify them. 

In this context, we highly recommend the Ada Fellowship Program. 

Small, easily implementable technologies (“tech nuggets“) can also facilitate change and establish new work practices.  

4. AI Competencies Become Mandatory – And Soft Skills Are Not Just Optional 

Starting in 2025, the EU AI Act will require companies to ensure that employees using AI systems possess the necessary competencies. As technology becomes more embedded in HR work, HR departments will increasingly depend on other disciplines within the company, such as data protection, IT, legal, work councils, or procurement. The first three will become even more involved in assessing the potential risks of AI. Companies must therefore rethink their processes and consider how to implement AI tools to take on truly business-critical tasks. Ideally, they will have a provider that supports them and ensures that the systems are used in compliance with EU regulations. 

Alongside technical knowledge, fostering soft skills remains crucial. As technology increasingly shapes our daily lives, reflecting on our interactions with it becomes more important. What behaviors do we want to maintain? What should we let go of? What new ones should we establish? 

5. Addressing the Skilled Worker Shortage: Strengthening Employees Instead of a Four-Day Work Week 

The shortage of skilled workers is real. The craft sector alone currently lacks 113,000 skilled workers. However, companies are not merely wish-fulfillers. A four-day work week will not be feasible for most companies in 2025. Instead, they need to focus on how to achieve significant results with the existing workforce without burning them out. Here, psychology is also important, especially traits like resilience, optimism, and self-efficacy, which can be measured using AI. 

Moreover, we need a shared understanding that work does not always mean joy but also involves growth and overcoming challenges. Conflicts are inevitable. What matters is how they are handled – whether people engage with each other respectfully and constructively even in difficult phases. There is no such thing as a “perfect organization” or a “perfect employee.” The acknowledgement of contradictions and simultaneity within an organization is crucial. 

Ideally, the tools used should also consider this complexity. Instead of quickly categorizing people, they should aim to view all aspects of a personality in a differentiated manner and derive suitable roles and development opportunities for employees. 

Conclusion 

It will be a challenging year, but we remain optimistic. Despite external pressures, companies have many areas within their control, such as whom they hire and promote, how they collaborate, how they support their employees, and how they use the scarce “resource” of human potential effectively. Integrating AI technology offers enormous opportunities but requires a shift in thinking and learning at all levels – from leadership development to fostering soft skills to creating a supportive, encouraging, and demanding corporate culture. It is crucial for companies to focus not only on efficiency but on sustainable development and transformation skills, enabling people to adapt to new, challenging situations and use technology meaningfully. 

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December 2024 – or, in the new chronology, Year 2 Post-GPT – marking two years since the go-live of the first version of ChatGPT. Requests like “Write a rhyming speech for my aunt Hannelore’s 60th birthday” or “Draft an outline for a whitepaper on the impact of generative AI on talent acquisition” – OpenAI’s chatbot has become an indispensable tool for many since November 2022, serving as both collaborator and colleague. Imperfect yet always available, it helps tackle writer’s block or tight deadlines. This past year, we at Zortify leaned on ChatGPT again for tasks like crafting social media posts. 

Sometimes, though, it’s not perfect, as we’ve seen. 😉 

The best posts? They came from us—straight from the heart, prompted by passion.

Hyperfocus and Hyperteams, Thanks to AI 

December 2024 also marks six years of Zortify and two years of unwavering focus on what we believe will have the greatest impact on modern HR practices: AI-driven HR diagnostics. Our goal is clear: achieve an unprecedented level of accuracy in recruiting and development. This means fewer mis-hires, more productive teams, and the right people in leadership positions. 

This focus sparked significant internal changes – some positive, some challenging. Team members left, others joined. Leveraging our own technology, which offers personality diagnostics and objective insights, we’ve built a dream team. And we’re growing. If you’re considering a career change in 2025 – especially in Sales – get in touch! 

The Bright Side of AI 

In December 2024, many businesses are still stuck in the old era – 2022 pre-GPT. While AI adoption has grown this year, it’s mainly large corporations taking advantage of the new tools: 

For many, the main obstacle remains a lack of knowledge. Clearly, we’re still in the early stages of widespread AI adoption in the economy. 

However, in social media, the story is different. Fake news and deepfakes have become so pervasive that they threaten democratic systems. It’s a stark reminder of AI’s power—unfortunately, in its darkest form. 

On the bright side, AI is also enabling remarkable things: 

Everyone wants these five colleagues* in 2024 (*or: this one AI)

While 2023 (Year 1 Post-GPT) focused on fears about job displacement, 2024 brought the realization that AI won’t replace humans in many areas; instead, it’s making human contributions more crucial than ever. Good work still hinges on collaboration – with other people and within diverse teams. It thrives on inclusion, objective analysis, and respecting individual uniqueness. 

Looking ahead to 2025, the advance of AI will make the human element indispensable. 

Why the Human Element Matters 

1. AI Makes Human Expertise Absolutely Essential 

In an age of ever-shorter innovation cycles, failing forward has become essential. Success lies in learning as we go, guided by those who are already a few steps ahead – those who’ve either learned from their mistakes or designed predictive models to avoid them. 

At Zortify, we aim to be these forward-thinkers, guides, and shock absorbers for our clients. We teach the skills needed to use AI technology effectively, enabling businesses to focus on their unique challenges. 

Incidentally, this is becoming a legal requirement in 2025. The EU AI Act mandates that employees working with AI possess adequate skills. With our certification program, we’re helping clients easily transition into this new era. 

2. Culture Development Remains a Human Task 

2024 has proved once more: culture first, AI second. Technology only succeeds within a supportive culture. Toxic work environments or outdated mindsets aren’t fixed by AI alone. 

At Zortify, fostering a respectful and inclusive culture remains a core value. For me this includes taking on seemingly trivial tasks when necessary – whether it’s organizing meals for a certification event or stepping in to fill an unexpected gap. 

At the same time, in view of our realignment and the associated changes since 2023, it was important to me to highlight and celebrate the achievements of our team. A good example of this and an absolute highlight in 2024 was our Zortify Connect Day, celebrating both our clients and our team. Hearing clients openly share their positive experiences with us was a testament to our team’s efforts and a major motivator. 

There will also be a CONNECT Day in 2025. Pre-Registration has already started.  

3. Leadership Requires Human Intuition, Clarity – and Free Calendar Time 

Good leadership remains inherently human. It’s about knowing when to guide, when to step back, and when to empower team members. AI-based diagnostics can help identify and develop leaders with these qualities but cannot replace the human touch. 

In 2024, I focused intensely on saying “no” to distractions, ensuring alignment with our priorities. This required clear communication – an area I worked to improve by preparing more thoroughly for meetings and fostering dialogue through active listening. 

In my view, active listening remains the number one leadership skill. AI can support this, for example by identifying socially desirable behavior as such and providing insights that go beyond first impressions and the obvious. However, it is no substitute for an open door and an open ear policy fostered by leaders. Personally, I have consciously taken more time for feedback and review meetings in the past year and invested in our corporate culture.   

An example of that was the implementation of “Open Calendar Time” on office days for spontaneous conversations and personal exchanges. These moments strengthened collaboration and trust within our team. 

Conclusion 

AI profoundly shaped our lives and work in 2024. In 2025, even more businesses and individuals will harness its potential. Still, collaboration will remain fundamentally human. Successful HR departments will blend deep AI expertise with the empathy and nuance that only humans can provide, using technology to elevate their impact. 

At Zortify, we’re proud of our progress in 2024 – thanks to our amazing team. As the year ends, I’m filled with gratitude and excitement for the connections we’ll forge in 2025. 

Happy Holidays! 

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Bias – unconscious thought patterns – can influence our perceptions and decisions. In the context of recruitment, bias can result in unfair evaluations of candidates, leaving potential untapped. This guide outlines common bias, their impact, and strategies to avoid them. 

1. Confirmation Bias 

This occurs when we seek information that confirms our initial impressions. For example, during an interview, we might look for signs that affirm our positive or negative first impressions of a candidate. 

How to overcome it: 

2. Halo Effect 

A single positive trait (e.g., confidence) influences our overall impression of a candidate, making other traits seem better than they might actually be. 

How to overcome it: 

3. Similarity Bias 

We tend to favor people similar to ourselves in terms of background, values, or interests. This is often masked as “cultural fit” but can lead to unconscious discrimination. 

How to overcome it: 

4. Stereotyping 

Stereotyping occurs when we make hiring decisions based on external characteristics such as gender, origin or age. Our judgments are often based on unconscious assumptions (unconscious bias) and not on facts. 

How to overcome it: 

5. Anchoring Bias 

The anchor bias refers to the fact that first impressions or initial responses can have a disproportionately large influence on our overall assessment of a candidate. 

How to overcome it: 

6. Attribution Error 

When we succumb to the attribution error, we immediately attribute certain behaviors to a candidate’s personality instead of to external circumstances. For example: “They are disorganized” instead of “They didn’t have enough time to prepare.” 

How to overcome it: 

7. Recency Bias 

In the case of recency bias, the most recent impressions or answers of the person in front of us have a greater influence on our perception than others. We often ignore what was said earlier. 

How to overcome it: 

8. Overconfidence Bias 

Relying too heavily on personal judgment and making quick conclusions (“I can spot a great salesperson instantly”). 

How to overcome it: 

9. Horns Effect 

The opposite of the Halo Effect, where a single negative trait taints the overall perception of a candidate. 

How to overcome it: 

10. Availability Heuristic 

The availability heuristic describes how we are sometimes overly influenced by experiences or memories from the recent past. This can be, for example, conversations with other applicants that have just taken place.   

How to overcome it: 

11. Status-Quo Bias 

With a status quo bias, preference is given to candidates who align with established patterns. New approaches or unconventional profiles are often being overlooked. 

How to overcome it: 

12. Survivorship Bias 

Survivorship bias occurs when we focus on traits of successful (former) employees while neglecting the potential of other characteristics, not giving unusual or unknown profiles the chance they deserve. 

How to overcome it: 

13. Loss Aversion 

Preferring the “safe” candidate to avoid risks, even if another might better fit the company culture. 

How to overcome it: 

14. Social Desirability Bias (“Super Bias”) 

Candidates may present themselves in ways they believe are socially desirable, masking their true skills or values. 

Example: A candidate emphasizes in the interview how important teamwork is for her, although in reality she prefers to work independently. This is solely a statement to meet the interviewer’s expectations.  

The social desirability bias is so powerful because it can reinforce other bias. For example, if a candidate behaves in a particularly socially desirable way, the halo effect or the anchoring bias could be amplified. A strongly self-confident candidate could not only be noticed positively, but other skills could also be overestimated – even though they may only be faking them. 

How to overcome it: 

Conclusion 

Biases are a natural part of decision-making but can have negative effects on both organizations and candidates. Through deliberate actions, standardized processes, continuous training, and the use of AI tools, we can counteract these distortions and make better hiring decisions. Recognizing these biases is the first step, followed by developing strategies to mitigate them. When human and artificial intelligence work together, the result is fairer hiring processes and finding the right people for the right roles. 

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Donald Trump will be the next US president. And in social networks, the concept of paid “zero-motivation-days” is being discussed, that is days off for employees without them having to call in sick or take vacation days.  

Two topics, although of different dimensions, which for us lead to one conclusion: Companies must start to face their responsibility! Responsibility for the people who work for them, but also for society as a whole. They need a straightforward “personality check” in order to find their role in these turbulent times, to develop new solutions that will secure their future, and to spark people’s enthusiasm for them as employers as well as for liberal, democratic societies, on whose existence their business success ultimately depends. 

Here is our idea for an “assessment for companies” in these turbulent times.  

1. Who do you want to be? 

Beyond “New Work” buzzwords, ask yourself what you want to stand for, what contribution you want to make to this world, how you want to make life on this planet better and how you want to shape your organization in specific terms. Whether there will be zero-motivation days or not, one thing is clear: the hamster wheel is not an innovative place, as labor expert Hans Rusinek puts it. Journalist Sebastian Klein finds even more drastic words, raising the question of who wants to work in companies that operate under war-like conditions. Instead, we need a new definition of business success that goes beyond turnover and profit and includes responsibility for people, society and the environment.   

Some of you may have already seen on Social Media (especially on LinkedIn) that the ‘School of Moral Ambition’ is currently forming as a new movement. This movement wants to specifically attract talent away from companies that exploit people and our planet. The people who engage in the School call themselves the ‘Robin Hoods of Talent’. Hundreds of people joined shortly after it was announced; well-known founders are promoting the initiative, which is likely to hit a nerve with many people these days.   

Companies now need the courage to look in the mirror, make a consistent paradigm shift, challenge their own product range and present something new and better in terms of a future that is worth living.   

2. How do you want to lead?   

We quote Hans Rusinek once again, who says that the power of a boss is much more present for us than that of a state. Companies shape the people who work for them. Managers bear great responsibility, especially in times of great uncertainty, when many people are looking for supposedly simple solutions or longing for the “good old days”. It is up to leaders to provide orientation. They are the compass navigating through organizational change and upholding core values such as empathy, openness, respect and collaboration. 

Dr Hans W. Hagemann of the Munich Leadership Group has found an easy-to-understand metaphor for this:  

Speaking of leadership

Good leadership also involves creating an environment of psychological safety. To achieve this, the purpose and goals of the organization must be clear (see point 1). Instead of knowing all the answers, leaders should adopt a curious, questioning mindset. Be vulnerable in the best sense of the word in the spirit of ‘vulnerable leadership’. This includes listening to employees and providing a safe space for ideas and suggestions as well as criticism and concerns. ‘Failing forward’ is what it takes to achieve progress: try things out, fall flat, get up on your feet again and do better. However, this is only possible in an environment that thrives on appreciation and sincerity. It is up to leaders to promote such an environment.   

HR market analyst Josh Bersin rightly says that of all HR investments leadership development creates the greatest value. Especially as leadership skills are no longer only required at the top of organizations, but are now needed at all levels considering the trend towards flat hierarchies in many companies. Selecting the right people for these key positions is more important than ever. We have conducted one of the largest studies on the subject of ‘narcissism’. It shows that young people today are more narcissistic than previous generations. This can become a problem when filling leadership positions in particular. Companies should be aware of that and use research-based and ethical personality tests to protect themselves.   

3. What does it really mean to be productive?  

Good leadership also comes with creating free time for employees to escape the hamster wheel and think in depth about good solutions. These free spaces, these phases of pondering, wondering and chatting at the coffee machine should be considered a valuable and natural part of doing the job. A walk with a colleague not only creates social contact (which in itself has a stabilizing effect on democratic structures), but also potentially constructive friction and therefore opportunity for new solutions. Doing the right thing can also mean doing nothing, pausing, reflecting and discarding instead of sitting in a meeting or building a PowerPoint presentation for a product that would turn out to be pointless on closer, unhurried inspection. 

With such a new baseline regarding work ethics, the discussion about whether to ‘work harder’ or receive paid ‘zero motivation days’ becomes obsolete. Not to mention that a contemporary leadership style should include abolishing practices not worthy of adults, such as micromanagement and controlling every step of your employees. 

Conclusion 

In a society that at the moment is characterized by frustration, fear and resignation to worrying proportions, we need companies that create a ‘climate of courage’. Companies that set new standards in how we negotiate and shape the future with a spirit of innovation and empathetic leadership. More and more well-qualified people are very likely to opt for such organizations if they have the choice. Now is the time for companies to look in the mirror and do their very own personality check. No more sugar coating and greenwashing. Now is the time for real responsibility. 

Check out the full interview with Hans W. Hagemann about leadership qualities and how to find them in employees. 

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Companies promote flat hierarchies and a culture at eye level in order to attract skilled workers. That sounds very progressive and good for employees at first glance. But why do so many people still leave the company after a short time? Why is retention, i.e. retaining talent in the organization, still one of the major challenges? Why are there still more Stefans and Christians in German boardrooms than women? And can AI help to change things?

I think organizations need to be aware of three things:

How can AI technology make a difference here?

In order to change organizations and make them more attractive to many skilled workers (sidenote: by creating suitable conditions for parents and especially mothers, 840,000 vacancies could be filled immediately), the structure and culture in many companies must change in equally. Eliminating formal hierarchies is not the solution. It is much more important to fill leadership positions with the right people. With personalities who use their power (in the sense of influencing the actions, thoughts and development opportunities of other members of the organization) for the benefit of the people and the organization. Who lead empathetically and provide orientation and security instead of micromanaging and building up pressure.

Structures are designed to be self-perpetuating. Changing them means changing formal and informal rules, processes and communication channels. Therefore, it is not enough to say “We are committed to diversity and equal opportunities in the selection of applicants”. There needs to be an underlying operating system that defines the relevant processes in order to achieve greater diversity and equal opportunities. These could be quota regulations, regulations on leadership positions in part-time, a partially anonymized application process or new procedures for selecting talent.

Transforming the operating system

AI technology can help to change structures. It can change processes in such a way that human socialization and the accompanying biases become visible and have less impact on decision-making processes. It can make the abuse of power through informal or formal hierarchies less likely by backing up decisions with data and making them subject to objective evaluation. AI can help to break down stereotypical job classifications (women work in marketing and HR, men in IT and management). It can break down behavioral expectations (Stefan or Christian become managers and not Claudia) with the help of data. In organizational cultures that consider themselves to be “at eye level”, it can make deep-rooted biases and mechanisms that lead to discrimination or other harmful behaviour discussable and thus changeable.

Conclusion

A workshop on unconscious bias and the rainbow flag on a LinkedIn profile is by no means enough. Organizations that really care about equal opportunities, diversity and thus attracting talent, and that really want to tap into the entire talent pool available, need to look deep inside the organization and critically review their operating system. AI can act as a sensor and make structural shortcomings visible. At the same time, it gives companies the opportunity to design their rules, processes and communication channels fairly, transparently and – this time for real – on an equal footing.

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1. Be aware that AI cannot make decisions. 

The question of whether an AI can decide about a person’s professional future becomes obsolete if we realise that the technology cannot make decisions on its own. But it can make us believe that it can. In the end, the AI accesses codified human decisions in order to carry out an action (decision). In other words: What the human doesn’t put in, the machine can’t put out. Or as the authors of ‘Power and Prediction’ put it: ‘Nobody ever lost a job to a robot. They lost a job because of the way someone decided to program a robot.’ If we are aware of this, we can develop a (self-)conscious and responsible approach to AI. 

2. Make the ‘why and what for’ the starting point for the use of AI. 

Before organisations rush into using new technologies, they should ask themselves what specific problems they want to solve with AI. It makes little sense to collect and analyse huge amounts of data if the objectives and benefits are not clear. These considerations should be based primarily on the needs of the people who are connected to the company in some way, while also taking into account the cost-benefit ratio. With regard to AI-supported personality analysis tools, companies can ask themselves: 

3. Keep working on your culture when using AI. 

Algorithms are often so complex that even developers cannot always fully understand them. In order to use the technology in a way that benefits both employees and the organisation as a whole, companies need to work more on their culture – more specifically, on a culture that promotes the ethical and responsible use of technology. Guiding questions could be:  

It should be a key part of the corporate culture to continuously reflect on existing thought patterns, behaviours and unconscious biases. Employees need time and safe spaces to be able to ask themselves and others critical questions. Open formats in which all employees can participate should be regularly offered specifically on the topic of ‘Dealing with AI’. This allows knowledge and experience to be shared and blind spots in working with AI and data to be recognised at an early stage. 

4. Learn to distinguish good data from bad data 

The type of data we use to train AI systems is crucial. If we use biased or prejudiced data, the machine will deliver results that further amplify stereotypical attributions and discrimination. We therefore need mandatory quality criteria for training data. Answers to the following questions, among others, provide guidance:  

There are many more. 

5. Be diverse. 

Diversity is more important than ever in times of AI. A diverse workforce brings different experiences and perspectives to the discussion about the ethical use of AI systems. This not only helps to improve the quality of decision-making, but also to recognise and reduce unconscious bias. 

6. Take a realistic look at the role of AI in the decision-making process. 

A fearless and constructive approach to AI technology requires that such analysis tools are only one of several factors in decision-making processes. They serve as a source of additional information that makes it easier for recruiters, for example, to make a final decision in favour of or against an applicant. It should be clear to everyone that AI predictions are never perfect. AI-based analyses are based on empirical data and scientific principles, but nothing more. In AI-supported personality analyses, as we develop them at Zortify, the error rate is realistically between two and five per cent. If we are aware of this, we can deal with it and develop suitable behaviours for the use of AI in organisations together with the employees who use the technology. 

7. Make processes transparent (not data sets). 

In personality analyses in particular, it is not only HR managers who need to understand how the AI comes to its results, but also the people affected, such as candidates. The keyword here is ‘Explainable AI’. But how can companies explain something so complex that also contains valuable information, for example for competitors? It remains uncertain what benefit applicants could derive from access to raw data or complex equations, as these are often difficult to understand and are not sufficient on their own to recognise bias in the right context.

The U.S. Association of Computing Machinery has developed a pragmatic approach. It requires that institutions using algorithmic decision-making be able to explain the underlying process of the algorithm and the resulting decisions in non-technical language. The aim is therefore not to disclose technical details in detail, but to improve transparency in two areas: the processes and the results. To do this, people need a deep understanding of how AI gets its results (as an example, take a look at our Zortify certification programme). 

The ethical design of processes in dealing with AI begins long before the AI is actually used. Think about when and who you need to involve internally in the process – from the data protection officer to the procurement team to the work council. (A corresponding ‘onboarding package’ from Zortify is in the making. If you haven’t subscribed to our newsletter yet, now would be a good time to find out more soon 😉). 

8. Create suitable team roles. 

AI technology is too important to be left to just a small group of ‘IT nerds’. Instead, an open discussion about the responsible use of algorithms and data should be initiated across the entire workforce. This requires people at the intersection of IT, business departments, HR and corporate culture who actively drive these discussions forward and document progress. Positions such as ‘AI ethicist’ or ‘human-robot relations manager’ are not abstract figures of a distant future, but are already in demand today. 

9. Allow yourself to have healthy doubts: about the AI and about yourself. 

Just as we shouldn’t blindly trust the machine, we shouldn’t blindly trust ourselves either. Humans make mistakes, carry biases, are sometimes bad-tempered or overconfident and don’t always make wise decisions. Nonetheless, we can allow ourselves to listen to our instincts and intuition.  

AI systems can help us not to be blinded by first impressions. They can make established procedures, such as assessment centres, more objective and fair. Above all, they can make them faster and cheaper, thus creating the freedom to constantly reflect on ourselves and engage in deep interaction with others (such as applicants) so that we are ultimately able to make the best decision. 

10. Be honest with yourselves: What can AI do better? 

In the discussion about Artificial Intelligence, the potential risks are often emphasised. Without ignoring these, companies should consciously shift their focus and ask themselves when they last had an in-depth discussion about human bias and the subjectivity of recruitment decisions.  

The fact is: AI systems can perform some tasks better than humans. In the area of recruitment and employee development, technology can analyse decision-relevant information faster than an entire team ever could. It uncovers aspects that escape the human eye even on second glance, thus contributing to better decisions – better for applicants, better for HR professionals, better for the entire organisation. As a result, it can make a valuable contribution to the search for talent and equip companies to meet the complex challenges of our time. 

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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.

Today’s working world puts the resilience and optimism of many people to the test. Digitalisation and automation require employees to regularly adapt to new technologies and working conditions. This calls not only for flexibility, but also emotional stability. According to the ‘State of the Global Workplace’ report by Gallup (2022), 44% of employees worldwide stated that they are under stress every day. Burnout rates continue to rise. A survey by the McKinsey Global Institute (2021) found that 42% of employees are concerned about workplace stress and its impact on their mental health. Added to this are the numerous global crises that are affecting people’s psychological well-being.

Those who are optimistic tend to be more resilient

We admit the numbers do not exactly scream “Feel positive!”. This makes it all the more important for companies to focus more on resilience and optimism as characteristics.

Resilience refers to the ability to overcome setbacks and difficult situations without falling apart. Resilient people always find the strength to recover and emerge stronger from crises. They remain focussed on their goals even in the face of difficulties and tend to learn from past experiences and use this knowledge to master future tasks.

Optimism, on the other hand, describes the ability to see challenges as opportunities for growth and further development. Optimistic people have a positive attitude that makes it easier for them to deal with obstacles. Through their optimistic view of the future, they can overcome fears and inspire others to take action, even those who may doubt or hesitate.

While these two characteristics are independent aspects they can also reinforce each other. In combination with a strong sense of self-efficacy, people with a positive attitude to life are more likely to trust in their ability to overcome problems, even in difficult situations. Studies show that optimistic people react more resiliently to stressful situations.

The positive consequences of positive thinking

Companies that specifically hire optimistic and resilient people benefit on several levels:

Finding optimistic and resilient employees with AI

AI can help companies recognise and promote optimism and resilience in (potential) employees in a number of ways. When recruiting, AI-supported systems can analyze application documents, social media profiles and work samples to find indications of resilience and optimism. AI-based personality diagnostics, like the ones we use at Zortify, are able to identify personality traits that indicate a high level of resilience or an optimistic attitude based on free-text answers to everyday questions. The risk of social desirability of answers is significantly reduced by AI.  

AI-supported personality analyses can also make a difference when selecting and developing existing employees – especially when it comes to leadership positions. Optimism and resilience are important characteristics here. Hans Werner Hagemann from the Munich Leadership Group, one of our partner companies, has correctly stated that in the future, leadership must entail ‘shaking up’ employees in a controlled manner. In other words, making them insecure in their tried and tested behavioral patterns in order to push them out of their comfort zones without frightening them. This works best with an optimistic attitude, which prospective leaders already carry within them at best. AI can make it visible.

AI systems can also measure the mental state and well-being of employees by analyzing written texts and deriving automated reports and recommendations for leaders.

What to do with the less optimistic?

Of course, not all employees are optimistic or resilient by nature. However, this does not disqualify them for tasks with more responsibility or as team leaders. Firstly, it is important to identify the causes. These often lie in stress, overwork or personal problems. Managers should therefore be able to recognise warning signs and act appropriately. There are numerous programmes that help employees to strengthen their resilience, such as mindfulness training, stress management programmes and psychological counseling.

Optimism can also be trained. Neuroscientific findings show that regular positive thinking ‘reprogrammes’ the brain. Neuronal plasticity can create new thought patterns that lead to greater resilience and emotional stability in the long term. Methods such as journaling, cognitive restructuring or consciously focussing on positive events can help with this.

Creating a positive corporate culture

Companies must aim to establish a corporate culture that empowers employees. People who feel self-efficacy and trust in their abilities often find it easier to cope with changing conditions. An environment in which mistakes are not immediately punished, but instead result in a learning process, gives employees the confidence to get involved and try things out. Last but not least, companies should communicate that it is okay not to be okay sometimes, that crises are part of life and that employees are also seen as human beings with their fears and worries. A corporate culture that promotes optimism and resilience not only attracts new talent, but also helps to retain existing employees. A study by LinkedIn shows that 72% of professionals state that a positive work culture is a decisive factor when choosing their employer.

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Dear Hans Werner, you write that the latest brain research has debunked long-held myths about the fundamental limits and motivations of people. What myths are these and what new findings should make leaders in particular pay attention?

The most significant realization is the importance of sufficient sleep, exercise and nutrition and their interplay for long-term cognitive performance. A few years ago, people were almost envious of colleagues who boasted about working 16 hours a day and getting by on four hours’ sleep. They wanted to constantly deliver peak performance. Diet and exercise played a subordinate role. The logical consequence was burnout, which was usually swept under the carpet.

Today, we are replacing the myth of constant peak performance with the concept of Best Perfomance for our clients. It’s about being able to call up the right performance with the utmost precision at all times. When you’re driving your car, you don’t drive through the city center with the pedal to the metal, you call up the right performance and are vigilant about constantly adjusting it. And while you are doing this, you are training your powers of observation, self-awareness and agility.

The world has changed rapidly in recent years. Despite this, many leaders still think and act in outdated ways. What needs to happen for this to change? What findings from brain research can help? Or to put it another way: can leaders outsmart their brains, according to the motto ‘Don’t believe everything you think?’

Some of the outdated patterns are hierarchical thinking, the belief in linear progress and the fairy tale of constant growth. Yet the central theme of our time is disruption. It is the most important task of leaders to get this into the minds of employees and support them in accelerating transformation. However, we are seeing too much soft-pedaling in companies. The situation is not taken seriously enough, irrelevant information is relied upon, people cling to slogans or completely pointless token projects are launched. All of this costs unnecessarily valuable time and ultimately leads to learned helplessness.

More knowledge about the function of the brain helps enormously. The basic principle is that our brains always try to provide us with the greatest possible security. Leaders need to get employees out of their comfort zones in order to create change. They need to use emotions much more constructively. They need to create psychological safety, increase curiosity in a targeted way and help the team to deal with uncertainty. Then the desire to perform will grow.

Does the ‘typical leadership brain’ exist? And what characterizes it?

No, there is no such thing. It’s down to the interplay between personal behavioral preferences and the respective environmental conditions. We observe time and again that the same leaders are extremely successful in one environment and suddenly underperform when they move to another. The basis of our work is therefore to give leaders as much self-awareness as possible and help them to make the best possible use of their individual strengths in every environment.

What else is important to be a good leader? What qualities do the leaders of today and tomorrow need to have?

We work intensively with our clients in training and coaching sessions on the topics of self-reflection, openness to new ideas, dealing with uncertainty and providing orientation.

Every leader is a role model, whether they want to be or not. You are always on stage. Each of us has a network of so-called mirror neurons in our brains that constantly scan the behavior of others and tempt us to imitate them if the person in question seems important to us.

It is therefore less important what leaders say than what they actually do. An increasingly important leadership skill will be to ‘shake up’ employees, as we call it, in a controlled manner. Making them insecure in their established behavioral patterns in order to move them out of their comfort zones without frightening them. Only there, outside the comfort and fear zones, is learning possible.

Leadership qualities are no longer only necessary at the top of a company, but in every team. How do companies find such personalities?

Through targeted observation of their own talents. There is no better playing field than the real situation. Leaders must learn to observe very closely what is happening in their own environment. They must recognise talents by their strengths and promote them in a targeted manner. As we will be working more and more in networks and matrix organizations, natural authority will become more important.

Who contributes good ideas without boasting about them? Who thinks in overarching contexts? Alos, who is listened to, whose contributions carry weight? And, who expresses seemingly absurd ideas from time to time, is not easily discouraged and shows resilience? We run development centers with some of our clients in which talents and their strengths are identified at an early stage in a playful and appreciative manner. The right use of these talents and how they are handled will be decisive for the success of the company in the future.

The further development of AI has accelerated the transformation of the world of work many times over. Can our brains even keep up with this? How do we manage not only to grasp the complex environment around us, but also to work with it?

It all depends on whether what is happening around us is perceived as a threat or an opportunity. And leaders have a huge influence on this. Imagine you’re a parent driving through thick fog with your three small children in the back seat and you can’t see your hand in front of your eyes. Of course you’re scared. But you can deal with it by adjusting your speed, using the fog lights and paying extra attention. What about the kids? –You can of course tell them that you’re scared and that you’re prepared for a collision at any time. But as a consequence, you probably won’t be able to control the screaming in the back seats. Alternatively, you could point to the navigation system and tell them that there’s a petrol station five kilometers away where you can take a little break with popcorn. The situation is the same, you’ve told the truth, you’ve given guidance and you’re moving on. In the future, it will be a matter of dealing constructively with growing uncertainties.

How is AI changing the process of recruitment itself and to what extent can findings from brain research be helpful?

Selecting the right people and providing them with targeted support in developing their talents into strengths is becoming a game changer in a competitive environment. We have been using psychometric tools for several years as an instrument for self-reflection, always combined with intensive debriefing for the individual leader. Some tools have come to a standstill in their development or are no longer up to date. AI will help to create much more accurate profiles through the precise processing of huge data sets and considerably more in-depth calculations.

This is where Zortify’s AI-based diagnostics really help us. We use it as a starting point for coaching when conducting in-depth personality analysis. Zortify’s AI differentiates very well, especially in the top management area, and prepares the ground for a profound examination of one’s own understanding of leadership. Leaders who have been in the business for a long time find this a particularly welcome leadership update. In addition, it will soon be possible to predict successful behavior in different team setups.

To what extent will it be more difficult for applicants to get a position with socially desirable answers in the future?

Social desirability is the main bias that we need to get a better handle on if we want to use personality analysis in talent recruitment and development in a meaningful way. I don’t see how we can significantly limit the effect of social desirability with conventional personality methods. Sure, there are lie scores that also measure the honesty of the answers. But as long as we only work on the basis of questionnaire-based self-assessments, everyone is free to answer honestly or dishonestly.

If we cannot avoid social desirability, how can we make it visible?

In HR diagnostics, we achieve better results when we combine different methods that are valid in themselves. For example, Zortify opens up a new source of information by using indirect personality measurement via the analysis of written free text responses. This makes it possible to visualize differences between the self-assessment using questionnaire items and the findings from the indirect method of text analysis. That’s very promising.

Why is it so important in psychometric diagnosis to add indirect methods (method within the method)?

Projective methods, for example, help to get distance from one’s own emotions that could distort the answer. ‘What would you say about a colleague who …’ makes it easier to tackle sensitive issues. In our Development Centres, there are many practical simulations in which real difficult situations are dealt with in a playful way instead of just cognitive self-assessments.

Will AI be the brains of the organization in the future and will humans have to master the so-called ‘soft skills’ above all?  

We will see. I believe that AI will indeed be the rational artificial brain that will provide all kinds of information in every conceivable form and analysis in a matter of seconds. Unbiased. But this will also lead to increasing conformity. The difference will then be made by leaders who work creatively on the basis of a solid human value system. And a high level of self-awareness and who recognise the special nature of situations that no one else can see. In this context, I believe that there will be a reassessment of the importance of cognitive and emotional biases. After all, we humans are top performers precisely because the sum of our personal biases makes us unique. And sometimes somewhat quirky personalities with all their flaws, peculiarities and unpredictability.  

What future of work are you looking forward to?

To a time with even more mutual appreciation, more flexibility, more self-determination and, above all, a desire to perform.

Munich Leadership Group Website