What companies would never learn about their employees without AI

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 modern natural language processing (NLP) technology, i.e. AI-based natural language processing, 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!

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

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.

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?