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.

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?

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.
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.
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).
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.
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.

Putting people at the center with AI

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.

“We don’t just invest in technology – we invest in our people.”

The shortage of skilled workers is reaching new record levels: according to a study by ManpowerGroup, 86% of German companies are struggling to find talent. When promising candidates suddenly drop out or are lured away by counter-offers, it’s not only frustrating but also expensive. Unfortunately, this is exactly what often happens

What companies would never learn about their employees without AI

How Spuerkeess is rethinking the role of HR in banking

Putting people at the center with AI

“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; 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.

Read the full interview with Sandra Schengen here.

What companies would never learn about their employees without AI

73% of all talents are ready to make a move – but only if you do!

Personality vs. hard skills

Why companies often make the wrong decisions despite knowing better? A new study of 110 HR experts clearly shows that the majority of companies are aware of the importance of personality and soft skills in recruiting. Many HR professionals are also aware of their own shortcomings when it comes to finding the right talent for the right positions.

What really motivates employees? – This question is more relevant today than ever, especially in industries such as consulting and financial services, which rely on trust, expertise and personal relationships and are also under high pressure to innovate. Traditional employee surveys often only provide superficial answers. A study from the manufacturing industry clearly shows how companies can use AI-based Natural Language Processing (NLP) technology to delve deep into the actual experience of their employees – and gain concrete ideas for action.

The study: 40,000 open answers, intelligently analyzed

In a large-scale study, Zortify and Great Place to Work analyzed over 40,000 open-ended text responses from employees at industrial companies using NLP technology. Unlike multiple-choice questions, open answers allow an unbiased view of what is really important to employees. NLP makes these answers measurable, comparable and structurable in terms of content – e.g. via semantic cluster analyses.

The result:

Employees with low loyalty to the company speak significantly more often about poor leadership – even more often than about salary. Highly committed employees, on the other hand, mainly talk about team culture, appreciation and meaning.

The real game changer: experience as a management parameter

The key finding from the study:

“The employee experience must become the starting point and benchmark for all transformation activities.”

Marcus Heidbrink, Co-Founder and CEO of Zortify

With the help of AI, this experience can be systematically recorded and incorporated into decision-making processes for the first time. Companies can use an NLP tool to analyze tens of thousands of responses on the emotional state of employees and extract the most important topics, problems and moods from them. In terms of the diversity of opinions, this corresponds to the input from a large number of focus groups, the implementation of which would entail enormous costs.

Active listening with AI offers three key advantages, particularly in industries such as finance and services, which are experiencing major upheavals and a growing shortage of skilled workers:

1. Understanding instead of assuming

NLP tools not only recognize whether someone is dissatisfied, but why – in the employees’ own words. This enables differentiated, target group-oriented measures.

2. Culture as a lever for loyalty

The perception of values such as appreciation, innovation or tradition differs significantly between loyal employees and those who are willing to change jobs. Targeted action here strengthens emotional loyalty.

3. Shaping transformation effectively

The study highlights cultural factors such as participation, autonomy and communication quality as key retention factors. NLP technology helps to identify these in employees and turn them into strategic control variables – especially in hybrid, dynamic working environments.

Employee satisfaction in the financial sector: no reason to be complacent

At first glance, the financial sector performs well in recent studies when it comes to employee satisfaction – top 10 at kununu and at the top of the Pens Study 2024. The sector scored particularly well for corporate culture (4.26/5), working environment (4.22/5) and diversity (4.40/5). However, as is so often the case, first impressions can be deceptive. This is because the scores say nothing about increasing polarization within the sector:

Job security in private banks is only 49% (vs. 70% in public sector institutions).
Management deficits and work intensification are increasing despite rising salaries.
Over 80 % of institutions report a shortage of skilled talent.

Conclusion

At a time when talent is more selective than ever and work pressure is increasing in many areas, it is no longer enough to conduct a survey once a year. If you want to retain your employees, you have to listen continuously. NLP technology makes this listening efficient, scalable and intelligent.

Employee retention starts with genuine participation – and AI provides the key.

You can download a detailed summary of the study from Zortify and Great Place to Work here.

73% of all talents are ready to make a move – but only if you do!

Personality vs. hard skills

Recruiting in transition: Why “Hire & Pray” is no longer enough

It is said that diamonds are only created under pressure. We wouldn’t agree with this saying when it comes to recruiting. Under pressure, our judgment suffers. Under pressure, suitable candidates are more easily overlooked or applicants are hired overhastily who later turn out not to be suitable. The cost of bad hires runs into the hundreds of thousands.

Personality vs. hard skills:

Why companies often make the wrong decisions despite knowing better

A recent study in which we surveyed over 100 HR experts in German companies clearly shows that the majority of companies are aware of the importance of personality and soft skills in recruiting. Many HR professionals are also aware of their own shortcomings when it comes to finding the right talent for the right positions. At the same time, they are hesitant about using the latest AI technology to make better decisions. The fact that the big American tech providers in particular are focusing on AI is certainly a major factor in this. It is therefore time to focus on what ethical AI made in the EU can do for recruiting.

What drives hiring and firing decisions?

What criteria do HR managers use to select new employees? – 62% of respondents stated that they prioritize personality traits such as soft skills and overall character. In contrast, 38 percent prioritize professional skills such as qualifications and specialist knowledge.

When asked about the reasons why companies part ways with employees, 72% of the HR experts surveyed said that problematic individual characteristics or behavior were the most common reason for employee dismissal. Only 28% cited inadequate professional skills or performance as the main reason.

When asked who is best at assessing personality traits, the figures were surprising: Only 17% of respondents trust their own judgment. In turn, only two percent believe that a highly specialized AI alone can make this assessment objectively and reliably. The majority (79%) prefer a combination of human judgment and AI-supported diagnostics.

Low success rate for personalities

The figures reveal a significant discrepancy: although 62% of companies consider personal characteristics to be the most important factor in recruitment, the success rate remains low. This is shown by the high termination rate due to problematic behavior (72%).

A core problem lies in the subjective assessment of soft skills and character traits. Unconscious bias can lead to recruiters making the wrong decisions despite their best intentions.

What companies can do

Recognize and minimize bias: Consciously dealing with cognitive bias can significantly improve the quality of decisions. We have summarized the 14 most important bias types here.

Use human-AI combination: Modern, highly specialized AI diagnostics can help to assess personality traits more objectively and accurately. According to current research, the latest AI models already achieve ten times the neuronal capacity of the human brain (source). With the help of AI, recruiters can conduct scientifically sound assessments within a fraction of the time and at a fraction of the cost of traditional assessment centers. And this can be done at a very early stage in the application process.

Introduce EU AI Act-compliant solutions: The use of AI in recruiting should be based on the requirements of the EU AI Act to ensure transparency and fairness. Particularly in view of the political developments in the USA, it is advisable to rely on solutions made in Europe.

Conclusion

AI-based diagnostics can significantly reduce wrong assessments and enable companies to make better hiring decisions in the long term. Everyone benefits from the responsible use of technology – HR professionals in their day-to-day work, applicants looking for the perfect job and companies that want and need to retain skilled workers in the long term.

Now is the right time to make recruiting processes data-driven and future-proof. We don’t have to look overseas to do this, but can rely confidently and with a clear conscience on solutions made in the EU.

About the study: As part of the “Recruiting Trends Conference 2025”, we conducted a quantitative online survey in which 110 experts from HR management, recruiting and talent acquisition took part. The sample comprised 65 female and 45 male participants from companies in Germany. You can download a summary of the study here.

73% of all talents are ready to make a move – but only if you do!

Finding the right talent does not allow for compromises!

Applicants want a fast, appreciative application process – companies, on the other hand, need a lot of information to prevent wrong hires, as well as efficient and structured processes to keep costs low and not make themselves liable to legal action. How does HR find the balance – and the best talent at the same time?

Recruiting in transition: Why “Hire & Pray” is no longer enough

According to Greenhouse’s Candidate Experience Report, the majority of candidates find the recruitment process frustrating, unfair and inefficient – despite the high demand for labor. Other studies show a similar picture: according to “JobTeaser”, 41% of applicants cite excessively long decision-making processes as the main reason for abandoning an application process. Negative reviews or a poor company reputation can also act as a deterrent and lead to dropouts.

The hidden costs of a lost candidate

Candidates dropping out has far-ranging consequences:

Time and money invested in the recruitment process is lost.
Teams have to make do without the necessary support for longer, which can affect productivity.
Frequent dropouts in application processes damage the company’s reputation and discourage further applicants.

The reason why this keeps happening: Many companies are too passive throughout the entire process. Publish a job advertisement, then wait and see? That’s no longer enough. Successful recruiting requires proactive strategies in order to attract top talent and not have to rely on less qualified applicants.

The active, strategic search for the best candidates should begin long before the actual application process. Thanks to new AI-based technologies, there are now innovative ways to target potential talent. According to the LinkedIn Talent Trends Report 2024, 73% of the global workforce is made up of passive candidates – people who are not actively looking but would still be willing to change jobs. A huge pool from which recruiters can draw.

Active sourcing reduces costs and increases retention

Companies that actively approach talent benefit from lower time-to-hire and cost-per-hire values. At the same time, candidate satisfaction increases, provided they are approached individually and not flooded with generic recruitment emails.

The key word is personalization. And no, a personal address in an email that is otherwise designed for mass mailing is not enough. Companies that show genuine interest in the skills and experience of applicants have a better chance of receiving a positive response. The second contact should therefore be personal and conversational. AI tools help to initiate a mutually beneficial exchange and combine data-based analysis with human relationship management.

How exactly do they do this?

The AI boost for active recruiting

This is where our AI-based personality analysis from Zortify comes into play: Desired candidates first answer a set of open questions, the answers to which are analyzed by the AI. Key personality traits such as the Big Five, entrepreneurial thinking or self-efficacy are assessed.

The analysis, including the respective answers, provides a wonderful basis for an in-depth discussion with the candidates and a structured interview: To what extent are individual answers particularly reflected in the results of the analysis? Which results on self-perception and assessment by the AI surprise them and why? In which areas of the company can they be most effective due to certain characteristics? And where do they see potential for development? At the same time, the analysis is a filter for companies to decide whether the candidates who appear promising at first glance really fit the role and the company.

The de-briefing can take place in three ways:

The recruiting team discusses the results directly with the candidates.
The recruiting team evaluates the results together with Zortify and receives recommendations for action.
Zortify takes over the de-briefing.

The aim is not only to make interview processes more efficient, but also to improve their quality – through clear criteria and individual questions. If the profile is not ideal, the analysis report enables an appreciative, data-based refusal. This not only saves our clients 1-2 rounds of interviews, but also the candidates. The latter still take away a positive experience because they gain new insights about themselves and possible professional futures. The importance of this aspect is underlined by the figures from the Greenhouse study: for a good 68% of applicants, constructive feedback increases their motivation to contact the company again at a later date, even in the event of rejection.

Conclusion: Rethinking recruiting

So what does HR need in order to shape the application process in such a way that it not only results in short-term placements with outstanding candidates, but also in sustainable relationships with people in a growing talent pool?

Rethinking: Less passive recruiting, more active sourcing.
Personalization: Proactive and personal approach to candidates throughout the entire process.
Skills development: HR teams need to familiarize themselves with active recruitment strategies and AI tools.
Gradual technology integration: Use browser-based solutions as a starting point to keep costs low.
Suitable providers: Choose providers that not only deliver tools, but also offer coaching and ethical advice.
Focus on people: For both recruiters and candidates, people are the deciding factor.

Companies that base their recruiting strategy on a proactive, people-centered foundation will attract the best talent in the long term. The figures show: Now is the right time to take action.

Schedule a demo with Zortify

Finding the right talent does not allow for compromises!

New Leadership: Nice is the little brother of toxic.

We think it is right and important that we as a society discuss topics such as “toxic masculinity” and clearly name corresponding misconduct as such. Language shapes our being and our consciousness; We can only describe problems and thus make them discussable if we have words for them. Toxic is such an important word.

Recruiting in transition: Why “Hire & Pray” is no longer enough

Recruiters are under pressure from many sides. They have to find the best candidates in a competitive market. The willingness of young people in particular to change jobs is higher than ever, as are their demands on employers. These demands are not only directed at the job itself, but also at the application process. Companies that fail in the candidate experience lose the best talent during the selection phase. Decision-makers, on the other hand, expect their recruiting teams to fill positions as seamlessly as possible with talented individuals who are both professionally and personally convincing.

In a survey conducted by the Society for Human Resource Management, 53 percent of recruiters surveyed stated that the stress level in their job has increased compared to the previous year. And it continues to rise with every unfilled or incorrectly filled position.

We should be talking about resilience now at the latest.

And in its actual meaning. Because contrary to what is often assumed, resilience does not mean being particularly resistant. Instead, it is the ability to pick yourself up again after setbacks and look ahead with optimism. “Ability to recover” is an excellent translation.

Resilience is a psychological resource that people can ideally activate reliably. At the same time, it is by no means only natural or fixed. We can learn and train resilience. It plays a key role in enabling us to do a good job in challenging environments, in contact with different personalities and in the face of increasingly rapid change. This is another reason why resilience is a sought-after quality that can determine whether we are the perfect fit for a position or not. But also whether we would have been the perfect fit for a position, were rejected and still go into the next job interview with confidence. And whether, when we are on the other side and have to make hiring decisions ourselves, we allow ourselves to be paralyzed by bad hires from the past or consciously remind ourselves of them in order to learn and grow from them.

And whether we do not allow ourselves to be carried away even after overwhelmingly positive experiences. But remain vigilant, focused and self-critical. We conducted a study on this in a call center, the results of which can certainly be applied to recruiting (as a special type of sales). In the study, the top performers showed significantly higher scores for resilience and self-efficacy than those employees who were not convincing on the phone.

Resilience as a top skill

The latest Future of Jobs Report from the World Economic Forum names resilience as the second most important core skill (after analytical thinking) for work in 2025. Companies need resilient people more urgently than ever before – both in recruiting and on the applicant side. The key question is: How can organizations shape the conditions for recruiting teams in such a way that they do not burn out under the increasing pressure, do not become discouraged by failures in a highly competitive and complex environment, in other words become and remain resilient? How do decision-makers, HR management, recruiters and hiring managers find a common understanding to identify the best candidates? And how do resilient recruiters find resilient employees for all roles that need to be filled?

We clearly see companies as being responsible for creating an environment in which employees can use their resources and activate them again and again. The following approaches can be particularly useful with regard to the demands placed on the recruiting team:

Reduce workload with AI

Routine tasks, such as scanning CVs or scheduling interviews, can and should be automated so that recruiters and hiring managers can focus on what comes after the first impression.

Streamline the application process

With the help of AI-based personality diagnostics, key characteristics that go beyond the CV can be identified even before the actual job interview. The Big 5, as well as optimism and resilience, are some of these characteristics. The analysis reports provide recruiters with an excellent basis for deciding who is worth inviting to an interview. Which candidates are worth investing more time in and which are simply not a good fit. This approach benefits both sides. As applicants don’t want to spend an unnecessarily long time in a selection process where their chances of success are close to zero.

Recruiters can also use the reports from the AI analysis to make the following interviews more efficient. The reports we generate with Zortify are based on open text answers from applicants. And therefore provide wonderful starting points for an in-depth dialog. Instead of working through generic questionnaires, recruiters can use the evaluations to ask specific questions about the applicant’s personality, team dynamics and working style.

Backing up decisions with data

The personality data analyzed with the help of AI helps the recruiting team to implement two key aspects of good talent selection. Even under pressure: a consistent focus on the individual and an objective comparison with other candidates. The data enables everyone involved in recruiting to develop a common understanding. And agree on what is important in the further selection process.

For example, a candidate may be perfectly qualified, but not particularly resilient according to the analysis. This is where recruiters need to assess the options: Do we give top priority to skills and prefer to invest in developing the person’s resilience on the job, or do we opt for an applicant with the second-best CV but who has a distinctly resilient personality? – By making these factors discussable and developing a shared understanding of desired qualifications, organizations reduce the pressure on recruiters, decrease bias on all sides and increase the accuracy of hiring predictions.

Creating psychological safety

An environment in which mistakes are named as such, but are also seen as a learning opportunity, reduces the pressure on recruiters and promotes their resilience. Regular feedback loops between hiring managers and executives also help to understand each other’s work and challenges and improve collaboration.

KPIs instead of “hire & pray”

It is clear that the pressure on companies will not decrease in the years to come. On the contrary: Germany will lose seven million skilled workers by 2035 as the baby boomers retire and low birth rates follow. Competition for talent is likely to intensify further. At the same time, technological development is making huge progress. Which on the one hand increases the need for new skills, but can also massively relieve the burden on companies in general and recruiting teams in particular.

AI-based analysis tools can make the recruitment process faster, more targeted and more objective. As a result, recruiters have free resources to take on a proactive role. Instead of constantly reacting to urgent staff shortages, they can focus on the question of which skills and personalities the organization really needs to grow and thrive in the long term. The aim is to move away from a reactive “hire and pray” approach towards proactive, data-driven recruiting that ensures the company’s long-term talent supply. This kind of anticipatory, strategic workforce planning goes far beyond short-term recruitment. And ensures that the right employees with the right skills are in the right place at the right time.

From panic to precision: how data-driven recruiting brings long-term success

A key lever here is the use of data and KPIs. While Sales tracks in detail how effective measures are, this systematic approach is often lacking in Recruiting. However, in order to grow with their tasks instead of cracking, recruiters need to specifically analyze which factors have led to a successful hire or a bad hire. They can significantly increase their success rate by analyzing past wrong decisions, recognizing their own bias and learning from it.

At the same time, they need to develop a deep understanding of the company’s future requirements. This includes not only assessing skills and experience, but also taking into account personality traits, development potential and career paths. In order to anticipate market trends and build talent pools at an early stage. It is more important than ever for recruiters to work closely with managers and colleagues in business development and marketing (employer branding). At first, this may sound like even more work. In fact, this kind of rethinking takes a huge amount of pressure off recruiting teams because it replaces short-term panic with long-term, sound planning. And at best, this leads to smart and sustainable recruiting strategies.

That is, strategies that produce plenty of diamonds even without excessive pressure.

Finding the right talent does not allow for compromises!

New Leadership: Nice is the little brother of toxic.

Expensive, unloved employees: How to avoid bad hires

The start of the year traditionally brings movement into the company. Employees leave, others have to fill the gap, and new employees have to be found and trained at the same time. And the question always arises: How do we ensure that the next person really fits in with us? That they won’t leave for new shores at the next full moon or turn of the year?

Applicants want a fast, appreciative application process. Companies, on the other hand, need a lot of information to prevent wrong hires, as well as efficient and structured processes to keep costs low and not make themselves liable to legal action. How does HR find the balance – and the best talent at the same time?

One thing is clear: a poor application process can be expensive. Specifically, when companies:

hire candidates even though they don’t suit them,
reject candidates who would actually be a good fit,
lose candidates in the process because they are frustrated,
risk their reputation due to recurring negative candidate experiences, resulting in bad reviews on Kununu or Glassdoor.

Where false judgements are made

Misjudgements happen, for example, when recruiters are overly impressed by features such as prestigious universities or large companies on a CV and then neglect to track down the really relevant qualifications. In interview situations, eloquence and self-confidence can mask a lack of skills.

Qualified candidates, on the other hand, run the risk of being weeded out early if their CV does not meet the formal requirements. Or if they sell themselves poorly in their cover letter. In stressful interview situations, introverted or less eloquent applicants sometimes perform worse. Even though they would be an excellent fit professionally.

Is AI the solution? – A clear “yes and no”.

The risk of bad hires does not automatically decrease with the use of AI. Sometimes the same effects described above are at work. AI systems can scan CVs and cover letters for certain keywords or qualifications in order to save time. However, this can lead to the exclusion of suitable applicants if unconventional but qualified candidates are overlooked due to missing keywords. At the same time, there is a risk of mis-hiring if applicants appear to be suitable due to the clever placement of keywords, even though they are not.

The same applies to AI-supported systems that analyze video interviews to evaluate non-verbal clues such as body language and facial expressions. Such systems would rate candidates positively simply because they show good non-verbal skills. At the same time, qualified people can fall through the cracks if they are assessed negatively due to nervousness or cultural differences in their non-verbal communication.

Taking the candidate’s perspective

So what to do? – One thing is clear: the best formal recruitment process is useless if it ignores the needs of the applicants. There are studies on what candidates want in the application process. First and foremost: objectivity, transparency, speed and personal interaction. Whether AI systems can have a positive impact on these factors is assessed differently by potential applicants, according to a survey of 1,005 participants conducted by the International University of Applied Sciences Erfurt. The majority of participants stated that the use of AI could lead to an increasingly impersonal process. More than half feared being disadvantaged by programming errors. And over 40 percent believe that transparency and data protection are at risk.

It is interesting to see that the majority of respondents have not knowingly had any experience with AI in the application process. The proportion of supporters also varies greatly depending on their level of education and migration background. For example, people with a high level of education or migration backgrounds are more likely to see advantages in AI, especially with regard to non-discriminatory assessment. In addition, some of the statements in the study clash with the desire for objectivity formulated in other studies. For example, 59% stated that they feared that factors such as “likeability” would be pushed into the background. At the same time, likeability is anything but objective and says little about the expected professional performance.

What can recruiters conclude from these contradictions?

Here comes the ultimate recruiting recipe!

No, of course not. At least we haven’t found it yet. (But we’re working on it with Zortify.) 🤓

Our findings from seven years of working at the interface of HR and AI:

Walk the Talk: We can recommend to anyone and everyone to put themselves in the target group’s shoes and go through their own processes from an applicant perspective. Ask yourselves: How do I feel at the various stages of the process? Do I know what is happening and with what goal? Am I interacting with an AI or a human being? Would I still want to do the job after this experience?
Transparency requires clarification: Where AI is used, it is all the more important that HR experts make personal contact with applicants at critical points. For example, to explain where AI technology is used, what kind of evaluation it provides and what happens next. De-briefings and a personal meeting in the event of a rejection are also important to maintain the bond between the company and candidate.
Focus on individualization: Not every applicant has the same needs. While some applicants prefer a quick process, others want deeper insights into the company. Flexible application options, e.g. video interviews or trial days, can cater to both sides. The same applies to vacancies and roles: Not every job requires the same depth of information. For example, the application process for a management position can be designed differently than for an employee in production.
Data-based evaluation: In order to improve the candidate experience based on data, companies should regularly gather feedback from applicants (including rejected applicants) to identify bottlenecks or points of frustration. Think: candidate experience surveys. Other KPIs can also provide valuable insights, such as those that measure the performance of newly hired employees or figures on how long new employees stay with the company.
Reflect on your own thought and behavior patterns: Narratives such as the “talent vs. employer market” consciously or unconsciously shape the work of recruiters. Ask yourself self-critically: Do I always make quick decisions because I’m afraid of losing the applicant? Do I make compromises because I assume I won’t find a better candidate? – Becoming aware of your inner drivers helps to sharpen your focus on what the company really needs.

Conclusion: Hire slow, fire fast.

Candidate experience and business needs don’t have to be opposites – at best, they complement each other. Every recruiter has a responsibility for the company.

Even if the application process takes longer as a result, it is worth weighing up all the options carefully. AI systems can provide valuable insights, but the final decision should always be made by a person – or rather a group of people – with expertise.

In the short term, it may be tempting to hire a candidate, even if he or she is not an ideal fit – but in the long term, such a compromise will harm the company.

If a suitable candidate cannot be found immediately, freelancers, external experts or consultants can be a valuable alternative. Platforms such as ExpertPowerHouse, Upwork or Empion offer access to an expanded talent pool and make it possible to flexibly bridge short-term bottlenecks.

And last but not least: Fire fast. What may sound harsh is actually a deeply human move. After all, it serves no one’s interests to keep employees and give them the same negative feedback over a long period of time. What’s more, a bad hire puts a strain on the entire team. And: the world does not need more dysfunctional companies. But vibrant and innovative organizations that develop great solutions in a changing world. And that is much more likely with the right people in the right positions.

We look forward to your thoughts on this: Which levers are you already using successfully to ensure a good candidate experience and sound talent selection? – Join the discussion on LinkedIn.

New Leadership: Nice is the little brother of toxic.

Expensive, unloved employees: How to avoid bad hires

More Evolution, Less Disruption: 5 tangible HR trends

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 …

At the same time, I advocate using words wisely. Not to spare those who behave wrongly. On the contrary: not to take away the weight of the words.

Toxic employees and toxic executives are a huge problem for companies. Researchers at the University of Bielefeld, the Berlin School of Economics and Law and the University of Trier have found that toxic leadership behaviour (“abusive supervision”) occurs in 85% of companies. 21 percent of companies even have a highly toxic atmosphere. The effects range from lower performance to a high level of sick leave to high employee turnover and the resulting low employer attractiveness.

But how do you actually know if a manager is behaving toxically?

It is clear that not everything that is uncomfortable is automatically toxic. A toxic working atmosphere can be recognised, for example, by the following factors:

Manipulation & fear culture: Managers play employees off against each other and fuel a climate of uncertainty and fear.
Lack of respect & appreciation: Superiors behave disrespectfully, make inappropriate remarks, hang mistakes high and at the same time let successes fall under the table.
Unfair or arbitrary decisions: Rules only apply to some and personal sympathies determine the career path.
High sick leave & high fluctuation: A conspicuous number of employees want to change internally in order to evade the manager, are sick more often or leave the company because the climate is unbearable.

Managers don’t have to be nice

What is the opposite of toxic? – It is certainly not “nice”. A strong leader should not primarily be nice, but first and foremost empathetic and effective. I would even go so far as to claim that overly nice behavior can promote a toxic working atmosphere to a certain extent.

How?

Managers who confuse new leadership with being nice all the time sometimes try to maintain harmony at any cost, avoid conflict and are reluctant to say “no”. In the short term, this niceness feels pleasant, but in the long term it leads to serious problems:

Unclear expectations: A lack of hard necessary feedback leads to uncertainty.
Drop in performance: Employees are not challenged and therefore not encouraged.
Inequity in the team: Weaker employees are spared while high-performers feel frustrated.
Loss of credibility and laissez-faire: Those who cannot assert themselves lose respect. At some point, everyone does what they want and nobody does what they should.

The psychology behind too nice leadership

Why do some managers behave too nicely? – There are usually psychological reasons behind this. Humans are fundamentally social beings and strive for connection with others. This is actually good and, if used correctly, can promote an empathetic leadership style. Sometimes, however, there is another need that makes good leadership difficult: the need to be liked. This can interfere with factual decisions and often leads to managers postponing conflicts instead of addressing them, so that they continue to smoulder, poison the atmosphere in the team and reduce performance.

What constitutes effective leadership?

Good leadership, on the other hand, means being “tough” in the best sense of the word – namely honest, clear and consistent. Managers must be “legible”. For example, we advise everyone who joins a team from outside to give employees the opportunity to make appointments in which they get to know and read the manager. This way, employees know what to expect. In contrast to laissez-faire managers, effective managers express clear expectations and make difficult decisions, even those that don’t please everyone. A consistent manager sets standards, demands performance and gives feedback – even if this is sometimes uncomfortable. Consistency is not the same as toxicity. Toxic behavior is based on humiliation, micromanagement, incapacitation and fear – consistent leadership, on the other hand, is based on clarity, fairness and reliability.

Toxic or Consistent – Telling the Difference

Sometimes it is not easy to recognize whether a behavior is toxic or necessary, even if it causes resistance among individuals. Especially when there is repeated friction between managers and employees on certain topics. The following questions can help to evaluate the other person’s behavior:

Question emotional reaction: Do I feel personally affected because I don’t like something, or is my supervisor’s behavior really destructive?
Judging according to objective criteria: Is the decision made justified, even if it does not necessarily follow my arguments?
Obtain feedback: How do other colleagues experience the manager’s behavior? Do they share my feelings?
Corporate culture: Are there values and structures that enable collaborative and appreciative work?

Conclusion: A more conscious approach to toxic personality traits

Toxic employees are a major problem and can be very expensive for companies. Ideally, people with toxic behavior should not even make it onto the shortlist for important positions. AI-based personality tests can be used to identify such tendencies as early as the application process and avoid bad hires. At the same time, we need a differentiated view of human characteristics. Not all characteristics that appear “hard” to others are also toxic. Here, AI systems can also help to recognize nuances and assess the personality traits of (potential) employees and managers scale-based.

The inflationary use of the term “toxic”, on the other hand, dilutes the real problem of toxic work cultures. Only if we clearly identify the difference can we seriously combat problems and at the same time value good leadership.

Expensive, unloved employees: How to avoid bad hires

Year 2 Post-GPT: How My Year Was Shaped and Why Work Must Remain Human

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”.

More Evolution, Less Disruption: 5 tangible HR trends

Not everything that makes employees change jobs is in the company’s control. But a lot. Above all, they can do a lot to avoid expensive bad hires. And to always know what employees are concerned about and what they want. It’s time-consuming, but it’s worth it. A look at the costs that a bad hire can entail clearly shows this. For employees without a management position, these can run into tens of thousands of euros. For managers, companies quickly end up with costs in the mid six-figure range.

How do these costs come about?

Let’s assume a Chief Sales Officer (who we will also have on board from February – shoutout to Jan). The salary range for such a position is between €8,000 and €20,000 gross per month, depending on the region and company size.

In order to find this person, costs arise for job advertisements. Possibly headhunters (whose fees are based on the profile sought, so are correspondingly high for managers), job interviews, contract preparation and the equipment of the workplace.

This is followed by the familiarization phase. During which neither the new employee nor their team can perform to their full potential. Agreements take longer, processes have to be explained and familiarized. And both sides need time to get used to each other. According to studies, the break-even point, at which the costs and benefits of the new employee equalize, is reached after six months at the earliest. It can take up to two years to reach full productivity. Provided the new colleague fits in well with the team.

If the recruitment is successful, the cost of the new hire is already around the same amount as the employee’s annual salary.

And suddenly everyone realizes: he’s no good at all.

The new colleague’s performance falls far short of expectations, communication with colleagues doesn’t work, the tone is harsh, the team is demotivated, sick leave increases. At this point at the latest, companies can start to add up the costs that arise because the other team members feel uncomfortable, insecure or frustrated. If there is a lack of psychological safety in the team, which is largely based on good leadership, new ideas fail to materialize. Employees are sick more often and those who are there are increasingly stressed because they not only have to take on the tasks of their absent colleagues. But also have to compensate for the lack of leadership from the new colleague. In the worst case scenario, employees leave the company while the incompetent manager remains on board.

The effects go even further: customer satisfaction and the company’s image can also suffer massively as a result of poor hiring. Here too, studies show that the costs can run into the tens of thousands.

Trying to sit it out can also be costly for companies. In a survey, 30% of companies stated that they had held on to employees for between three and six months. Even though they clearly did not fit into the team. With all the negative (and expensive) consequences for the rest of the team, motivation and productivity.

If companies then reach the point of letting go of the unpleasant employee (or promoting them, as in elephant graveyard), further costs arise – for compensation payments, further and, in case of doubt, even higher salary payments (in the case of promotion) and the permanently disrupted team dynamic (here too: this can be permanently impaired in the case of promotion). At the same time, the search for a candidate starts all over again – with the costs mentioned above.

Phew.

If companies don’t have a huge ‘bad hire budget’, they need ways and means to avoid expensive bad hires at all costs. What can these be?

Personality first, skills second: Skills can be learnt, personality is there. AI-based diagnostics can be used to identify and cluster the key personality traits for the company. Without the need for time-consuming assessment centers.

Thoroughly test high potentials too: Years of management experience, top performance on paper and the right first impression. However, this should not stop HR from taking a close look at people with management ambitions in particular. A personality analysis provides insights that go far beyond first impressions and makes desired behavior visible as such. It is also worth talking to former colleagues and superiors about how they worked together.

Know your own bias and minimize it: There are more than 13 types of bias that influence our decisions in favor of or against a person. Anyone involved in the selection of candidates should be aware of those prejudices – and consciously try to overcome them. Technology can also help here. And provide an objective assessment of the person before the next step in the application process.

13 + 1 Bias in Recruiting: How to Recognize and Overcome Them to Find Truly Suitable Candidates

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.

Year 2 Post-GPT: How My Year Was Shaped and Why Work Must Remain Human

More Evolution, Less Disruption: 5 tangible HR trends

More Evolution, Less Disruption:

Five Tangible HR Trends to Get Started Right Away

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.

13 + 1 Bias in Recruiting: How to Recognize and Overcome Them to Find Truly Suitable Candidates

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Between Trump, zero-motivation-days and the “Robin Hood of talent”

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!

Hierarchy with AI rather than everyone at eye level?

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?