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

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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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

Return to the office or offer flexibility and freedom? – Hybrid working combines the best of both worlds. At the same time, it presents organizations with challenges in maintaining productivity, engagement and wellbeing. Understanding the different personalities in teams has never been more important. Hybrid work environments require hybrid recruitment and development strategies, namely those that add a third pillar to the personal impression and the facts from CVs and application documents: AI-based personality assessments that make it possible to find out what really makes someone tick and what he or she needs to be able to work well. They can make a significant contribution to optimizing hybrid working environments. A recent survey found that 8 out of 10 employers have lost talent due to the obligation to return to the office, underlining the need for a balanced and personalized approach. ‘Person first’ as an extension of “people first”.  

Why personality is important in hybrid work

Hybrid work environments affect different personality types differently. Introverts, for example, tend to thrive in structured hybrid environments, while extroverted employees tend to struggle with the isolation of remote work. There can be no one-size-fits-all solution, simply because companies should have an interest in forming heterogeneous and diverse teams. After all, these are proven to be more successful. This means that companies must also act strategically with regard to working environments to ensure that collaboration works well.

Form determines performance

The ‘Extended Mind Theory’, for example, states that our thinking must always be considered in conjunction with our environment. Where someone works therefore has a significant influence on how that person works. Companies should ask themselves what resources their employees have access to in order to think and perform well, and whether these are sufficient. After all, employees’ potential sometimes lies untapped because the spatial conditions do not allow them to develop in a way that suits their personality. Or to put it positively: Companies should be aware of the different preferences when designing work environments in order to promote the strengths of their employees.

Personalized recommendations for greater productivity

Based on the personality data analyzed with the help of AI, HR can make personalized recommendations for employees to make their day-to-day work more productive and enjoyable. These recommendations can relate to a variety of aspects, such as the selection of the ideal work location (whether in the office or working from home) or the use of suitable communication tools (e.g. video conferencing vs. chats). Similarly, employees who work better in quiet environments could receive specific suggestions for office areas that meet their needs. Last but not least, AI can help to put together teams in such a way that employees with complementary personality traits work together in the best possible way. This personalized and balanced approach not only promotes employee efficiency, but also their well-being and satisfaction in the workplace.

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Employee diagnostics: What do you care about my personality?

Which personality traits should companies definitely know about their employees? How are behavioral expectations in the work context changing with the new generation of young employees (GenZ)? Why should companies therefore take a very close look at the characteristics of future leaders in particular?

HR should focus far more on personalities!

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

What is more important on the job – doing things right or doing the right things? – Most people will probably answer “both”. Nevertheless, in the context of changing corporate cultures, it is worth thinking about this question in its absolute either-or variant. For a long time, companies were primarily concerned with doing things right. To put it simply: Always work through what has been ordered and don’t make any mistakes. In the world we live in today, this approach no longer works very well. In the face of a rapidly changing environment, companies are constantly having to decide what is the right thing to do. Even at the risk of making mistakes.

Stronger in a swarm

To do this, they need teams that can dynamically align their working methods and roles with what needs to be done, using their collective strengths and insights. Because one thing is clear: No one can solve the complex challenges of our time alone. No one, not even the person with the most impressive job title, can always know which path is the right one. This requires the senses, experience, insights and skills of many people.

But what is the best way to bring these to the table?

When we talk about the transformation of companies and the associated cultural change, it is usually about giving more authority and responsibility to individual employees. However, this is only one aspect of team empowerment. Before that, the focus should be on what the individual can and wants to contribute to the team. Employees’ knowledge, talents, skills and competencies do not have the same quality and relevance at all times and for every task. Take “knowledge”, for example. This is considered a valuable skill in the knowledge society. But how valuable is knowledge that cannot be translated into concrete action? Knowledge without knowing how to bring it into the team in a meaningful way is useless for companies.

Banal yet ingenious: measuring preferences and strengths

What companies need today are employees who want to actively shape the world around them with what they are really good at. And who can translate their knowledge and skills into meaningful action in collaboration with others. How well and how quickly transformation takes place. And whether companies manage to change in the long term depends on the skills of each and every individual. And the skills of teams as engines in companies.

For these engines to run well, the individual parts must be anchored in the company with the right tools. We have developed the so-called “Preferred Performance Contributors” (PPCs) as effective tools. PPCs represent a new, innovative approach to team dynamics. In contrast to traditional management tools and personality assessments, which often promote generic roles and stereotypes, they focus on the natural inclinations and individual strengths of team members. They help to identify specific preferences through which employees prefer to contribute best to team success.

We have identified six areas of preference:

The individual PPCs are determined in three ways:

The AI test uses an algorithm that extracts relevant personality traits from answers to open text questions. And creates an AI-supported prediction of the PPCs.

The result of the analysis is a ranking of the six PPCs for each employee. It is important to emphasize that all contributions are in principle equally valuable. For companies, it is important that they can play out the right preferences in the right combination at the right time.

An example from one of our customers, a large software company: The team wondered why they never managed to meet deadlines. Many products were far from market-ready. Instead, they kept developing new features with great enthusiasm and energy. The analysis finally shed light on the situation. As it showed that the PPCs “Scaling and Production” were not among the top 2 preferences for any of the team members. “Creation & Prototyping”, on the other hand, were strongly favored. This gave the team a basis for rethinking tasks and roles so that they can bring products to market on time in the future.

In principle, employees can meet all preferences, but depending on their personality type, one may suit them more than the other. Intuitively, we probably tend to want to expand our strongest preferences with additional skills and experience. At the same time, it can be exciting (or necessary) to delve into the less obvious areas of preference. Either way, the analysis provides a good basis for discussing individual preferences and strengths with colleagues and positioning the team well for upcoming tasks. A nice side effect: psychological safety and the feedback culture in the team are also strengthened.

World in motion – teams in motion

PPCs empower teams to constantly redistribute roles and responsibilities in order to do the right thing and avoid major mistakes. A reorganization can result, for example, from new external conditions or from changing preferences among the team members themselves. This is because skills and preferences change over time and depending on the phase of life. For example, an employee who has always been a gifted networker in the forefront but suddenly has to care for a relative may want to focus more on providing structure and support in the background. Or they may want to take on a role that perhaps does not match their previous PPCs at first glance. But which they can fill well in their current situation with appropriate further training.

Perhaps the results of the AI analysis (in which desired answers have little chance) will inspire them to look at possible new roles. That they have not yet considered based on their self-assessment and colleague feedback (both of which tend to fall into certain patterns).

The example shows very nicely that PPCs are not fixed attributions. But primarily promote dialog and awareness in teams and ensure that employees do not wither away in their silos, but can become as effective as possible. And that from day one in the company. If new employees are familiar with their preferences and role expectations, they can reach their full potential more quickly. PPCs turn them from pure skill owners into skill users and ultimately – ideally – into drivers of change and transformation, driven by the need to do the right thing. Even at the risk of not always doing everything right. 

A good team can handle that.

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The self-made skills shortage

Why should we analyze applicants in depth if we have no choice about who we hire anyway? We hear this question a lot. It reflects the frustration many companies feel about the lack of skilled workers. And rightly so? – We say: Yes and no. For one thing, we think that the shortage of skilled workers is not a “force of nature” that companies are helplessly exposed to.

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Why should we analyze applicants in depth if we have no choice about who we hire anyway? 

We hear this question a lot. It reflects the frustration many companies feel about the lack of skilled workers. And rightly so? We say: Yes and no. For one thing, we think that the shortage of skilled workers is not a “force of nature” that companies are helplessly exposed to. And secondly, we are certain that in many areas there is no real shortage. But rather an onboarding and “distribution problem”. We are convinced that companies can do a good job even with a shrinking talent pool if they

To do this, they need good data beyond the CV.

Personality determines performance 

Both when recruiting new employees and when assigning existing employees, we believe it is important not to rely on first impressions. Instead, the HR department can use AI-supported analysis methods. To identify personality traits that are difficult to recognize even at second glance. But which contribute significantly to whether employees really have the desired impact. This depends less on the requirements formulated in a static job advertisement. And more on what makes a person tick and whether they have certain character traits. Such as a desire to learn, openness to new topics and social skills. Many technical skills can then be learned on the job. 

Promote horizontal career development

Not every new job has to be filled by recruiting from outside. Instead of the traditional vertical career ladder, horizontal development paths are gaining in importance. This means that employees are no longer necessarily aiming for the next higher position. But want to look left and right within the company. Gain new experiences and take on responsibility outside of their previous working routine. This is possible, for example, by working on projects. Or in the course of so-called “short assignments”. These are short-term tasks that often only require a very specific skill set to be combined in one or two people max. A tangible example of such a short assignment is the creation of a digitalization concept – a task that is likely to be at the top of the agenda for many companies right now. 

In an interview with Tom Ritsch, co-founder of the transformation consultancy AOAIO, which you can find linked below, he emphasizes that in future, hire-on-demand approaches and therefore the human fit will become much more important for companies than fixed skills. Project teams are increasingly being put together like teams in team sports, where each player has an assigned role. The captain’s armband is worn by whoever has the right personality to motivate the team and keep it together. The advantage of these changing team constellations and horizontal career development in general is that employees acquire a wide range of skills that the company can tap into again and again as required. 

Agile employees – (im)agile companies? 

In order to tackle the supposed shortage of skilled workers, it makes sense for companies to consider recruiting and learning & development much more holistically than before and develop a comprehensive “mobility concept” for talent. In this context, US HR expert Josh Bersin has identified three directions of talent movement that good HR work should focus on: 

Shine on the inside, sparkle on the outside

Companies that invest in personality-based learning & development and thus support the internal mobility of their workforce can also have a positive impact on external recruiting. How can they do this?

Promote diversity:

By suggesting suitable roles and positions to employees based on an unbiased personality analysis, the foundation is laid for diversity and variety in the staffing of teams. Diverse positions and a high degree of equal opportunities within the company in turn attract talent from outside.

Avoid employee turnover:

When employees have the opportunity to develop within the company. And pursue new career paths on their own initiative, they stay longer. According to the “2021 State of Internal Recruiting Report” by Smart Recruiters, high-performing employees are 20 percent more likely to stay with the company if they can change their role or sphere of influence if necessary. Low staff turnover, in turn, has a positive effect on the employer brand. And thus the external perception of the company by applicants. Tom Ritsch from AOAIO takes a similar view. Even if it seems that the company cannot find suitable employees. It should continuously work on positioning itself on the market for existing and potential employees, says Tom. (You can read the whole interview here).

Improve the candidate experience:

If companies take an increasingly situational approach to filling roles and positions internally and enable their employees to develop horizontally as they wish. For example as part of projects and short assignments. There is a good chance that this will also rub off on external recruitment practices. In other words, here too, HR may focus more on the essentials. On characteristics and skills that are really needed at the moment. Instead of using static requirement profiles as a benchmark and thus drawing attention to deficits. Recruiters talk to candidates and focus more on qualities. Such as willingness to learn, creativity and enjoying taking over responsibility.

Yes, you can.

There are many great real-life examples that show that companies that embrace new learning and career paths and make people’s personalities their compass are more resilient in the face of the skills shortage:

So companies certainly do have a choice. Namely, whether or not they are willing to self-critically question their previous recruitment practices and face up to the new realities with maximum openness and the support of smart technology.

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“We are not looking for consultants, we are looking for people who fit in well with us.” – Interview with Tom Ritsch, Co-Founder of AOAIO

Hi Tom, this week we’re looking at the question of why companies should even bother assessing candidates in depth if they don’t have much choice anyway. What would be your spontaneous answer to companies that think this way?

This is probably more about internal and external employer branding. Even if it seems that you can’t find suitable employees, this is exactly what you should be focusing on. Companies must always work on positioning themselves on the market for existing and potential employees. Employer marketing is the key to sustainable success here.

When it comes to the skills shortage, we see different perspectives: some say the shortage is real, while others believe that there are enough people to do the job, but the antiquated structures in companies prevent them from working efficiently. Partly because they are not working in the positions or roles that suit them. Do you share one of these perspectives or do you have your own?

The shortage is partly real, but often a good excuse. In my opinion, it’s about doing an excellent job at all levels. Yes, I also believe that there are enough suitable employees (as always, exceptions prove the rule), but recruitment is still often wrong. Companies need to learn to focus more on the personality to see whether someone fits into the company and the team. Of course, if someone needs certain skills for the job – languages, programming, finance, etc. – they have to have them. But for me, the focus is on the person and the fit. At AOAIO, for example, we are not looking for consultants, we are looking for people who fit in well with us and who I would take with me to the customer any time. You can learn a lot in our job, but empathy and social skills must be there, as well as entrepreneurial potential. So I agree with the statement that it is outdated structures that prevent us from finding suitable employees. In the first place, companies are still searching as they did 20 years ago (it’s a miracle that they don’t still advertise in newspapers) and secondly, the processes and requirements are no longer up to date.

At AOAIO, you support companies in transformation processes. What challenges do these companies share and what differences are there, perhaps with regard to different industries?

What all companies share is the great challenge of digitalization and optimization and the enormous speed that is required. In contrast to the financial industry, where the message has gotten through, industrial companies in the SME sector are struggling enormously with these changes and the necessary investments. The core problem is still that the companies are doing well, perhaps too well, and therefore do not yet see the need for change. There are often people at the top who grew up in a different era and function differently, which is very dangerous for these companies. But often the core problem is that they do not know how to proceed. Who can I trust to do what is really important and necessary? Who understands my needs and who just wants to sell me software. This is something we often struggle with, or come up against when the wrong decisions have already been made. The digitization requirements are actually the cause, because instead of looking at the topic holistically – why do we need what exactly at what point and how does this help us to become more successful (digital roadmap approach) – individual processes are backed up with new software and thus adjusted. The process is rarely considered end-to-end and the customer perspective is all too often overlooked. The result: frustrated employees, dissatisfied customers, bad investments. That’s why I love to show the basic formula of digitalization:

OP + NT = EOP → Old Processes + New Technology = Expensive Old Processes

This means in one sentence: With all the digitization hype, one must not forget that the processes have to be adapted!

As a consultant you are specialized in “human transformation” in an organizational context. From your perspective, do the organizations need to change or the people?

That’s an interesting question. First of all, it’s up to the managers. Just because you read a book about New Work during the vacations doesn’t mean the organization will change. Organizational development has become a core issue and this includes taking people with you, involving them and giving them more responsibility. However, this does not happen overnight, it is a process. It always starts with self-reflection. So the answer is: everyone has to change and be prepared to do so.

How do organizations find the people who are right for them?

To do this, organizations first need to know who they are. What is the culture of the organization, what values are being lived and what makes it special? It is essential to reflect on the company. Just because values are written somewhere on the wall does not mean that they are actually being practiced. A cultural analysis or simply a suitable employee survey helps enormously. If it is clear what makes you tick you can look for suitable people on the market and place your messages in line with the target groups. Of course, for larger companies this can mean having several structures and approaching the market with a variety of approaches in order to position themselves. I address construction workers differently than HR employees.

Looking at the younger generation: How have career requirements changed and how can companies adapt to this?

I don’t quite know if I’m the right person to answer that. There are specialized companies set up by young people to answer these questions for established companies. I personally believe that it has changed massively and will continue to do so. I think it will move more towards a hire-on-demand-concept, which will make the human fit even more important. Project teams will be organized like you select the right players for a specific task in team sports. Careers are becoming less and less relevant and companies have to develop such New Work concepts. It’s not about a nice workplace with table football and a juice bar. It’s about concepts that are contemporary and meet all needs. But here, too, the first step is self-reflection: What does the company need in order to be successful? It always comes down to these three central questions:

What role does AI technology currently play in transformation processes and what role do you think it will play in the future?

A huge role! However, companies must first learn to understand what this hype is all about and where the benefits are significant. We successfully use Zortify’s AI based tools in our projects because we put people at the center of things and not simply rely on a self-assessment based on the Big 5. Those days are definitely over. Let’s use AI where it makes sense. It’s not so much about finding out who is right and who is wrong, it’s about helping people to improve.

You have just mentioned that you and your colleagues use Zortify’s employee diagnostics for your consulting. Can you give some examples of how you work with it? Perhaps you even have an anecdote about what you were able to recognize or achieve with the help of AI?

At the beginning of our transformation processes (SharedWhy), we primarily rely on Zortify GROW. This gives us very good insights into the teams and provides us with a perfect basis for reflection. We also often use iHPT (instant High Performance teamingg) in various areas. The central issue here is the perfect composition of teams. We work very closely with Zortify on this topic in order to develop it further as we believe there is enormous potential there. Especially with the iHPT process we are always amazed at how easy it is to get management to really think about it. These reports trigger excellent discussions, which often circle around the impact and role in the team. Suddenly questions arise such as:

Thank you so much for the insights. We have one last question for you: In the past you have founded a start-up in the sports sector. Imagine you’re standing on the sidelines of the field cheering for a prototypical SME in the “game for the future” – what do you shout to them?

That’s a bit difficult in the sport I’m involved in. First of all, there’s no sideline in golf and shouting isn’t really the issue. 🙂 Joking aside. I do the same as I do with the players I still coach and often use these metaphors in the business world:

Thank you for the interview, Tom. 

For more information about Tom and his work at AOAIO check out their website or follow Tom on LinkedIn.