In the field of HR, harnessing the transformative potential of AI presents a compelling opportunity for European organizations. However, navigating this frontier necessitates a collaborative approach that acknowledges the critical role of Works Councils.
We created this guide to help HR professionals work with their Works Councils as strategic partners to ensure smooth and successful adoption of AI in HR practices. It’s important to realize that Works Councils aren’t there to impede technological progress, but rather to safeguard employee rights and interests during such transitions.
By taking a proactive approach with Works Councils, providing comprehensive information and addressing concerns in a collaborative manner, organizations can significantly enhance the likelihood of successful implementation, fostering a work environment empowered by this innovative technology.
This guide outlines the process of considering, procuring, implementing, and using an HR technology platform like Eightfold AI, all while emphasizing collaborative engagement with your Works Council throughout the endeavor. While the focus is on German Works Councils, the framework presented here may hold applicability for similar employee council structures found in countries like Spain.
In this guide, you will learn:
- Why creating a proactive and collaborative relationship with your Works Council makes good business sense.
- How to be proactive in your approach.
- The benefits of creating and maintaining this relationship.
How to partner with your Works Council
In the dynamic landscape of human resources, harnessing the transformative potential of artificial intelligence (AI) presents a compelling opportunity for European organizations.
However, navigating this frontier necessitates a collaborative approach that acknowledges the critical role of a company’s Works Councils. That’s why we created this guide to work with the Works Councils as strategic partners to ensure smooth and successful adoption of AI in HR practices.
It is essential to recognize that the Works Councils serve not to impede technological progress, but rather to safeguard employee rights and interests during such transitions. The Works Council’s focus rests not on the technology itself, but rather on how any new tool impacts the rights and well-being of employees.
By engaging proactively with the Works Councils, providing comprehensive information, and addressing concerns in a collaborative manner, employers can significantly enhance the likelihood of successful implementation, fostering a work environment empowered by this innovative technology.
This guide serves as a comprehensive resource, outlining the process of considering, procuring, implementing, and using an HR technology platform like Eightfold, all while emphasizing collaborative engagement with your Works Council throughout the endeavor. While the focus is on German Works Councils, the framework presented here may hold applicability for similar employee council structures found in countries like Spain.
The rise of AI in HR
AI has transformed almost all aspects of business, and the talent landscape has not been left behind. It is undergoing a seismic shift with AI rapidly transforming HR processes, offering immense potential for streamlining talent acquisition, optimizing performance management, and enhancing the overall employee experience.
Some key areas where AI is revolutionizing HR processes are:
- Discovering hidden talent: AI can analyze vast data to find top talent beyond résumés (based on skills, experience, and cultural fit) and identify underrepresented talent pools for a more inclusive workforce.
- Optimizing talent experience: AI can streamline applications, provide timely feedback, and promote objective processes with skills-based approaches.
- Faster time to hire: AI can analyze data (résumés, job descriptions) to recommend qualified candidates and shorten time to hire. AI also provides transparent justifications for these recommendations so you can make informed decisions.
- Better employee engagement: AI can analyze skills to personalize learning and development for a more engaged workforce. AI can also identify high-potential employees and predict flight risks, allowing for targeted retention strategies.
- Workforce planning: It can also forecast future talent needs for proactive recruitment.
The role of the German Works Councils
Germany has a unique system of employee representation through the Works Councils (Betriebsrat). These elected bodies represent employee interests on a range of issues, including working conditions, personnel planning, and social welfare. They possess significant authority, particularly regarding issues that impact employees, such as data privacy. When it comes to AI implementation in HR, the Works Councils play a crucial role:
- Function: The Works Councils act as a bridge between employees and management. They have the right to be informed and consulted on any significant changes impacting the workforce, including the introduction of new technologies. They also serve as a voice for employee concerns regarding potential biases, transparency, and data privacy related to technology implementation.
- Authority: The Works Councils have co-determination rights on certain aspects of HR processes, such as training programs and performance evaluation systems. In matters of co-determination the employer may not make decisions without the consent of the Works Council. Instead, the Works Council must authorize any planned measures or the parties must come to an agreement (e.g., a works agreement). They can also negotiate agreements with management regarding the use of AI in HR.
