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

Transparency = Progress

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

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

The vulnerable leader

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

Really understand what’s going on with AI

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

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

Making transparent what makes us transparent

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

A look at the numbers:

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

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

Humans and AI hand in hand

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

In detail:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Those who are optimistic tend to be more resilient

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

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

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

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

The positive consequences of positive thinking

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

Finding optimistic and resilient employees with AI

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

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

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

What to do with the less optimistic?

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

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

Creating a positive corporate culture

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

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