The human factor in AI, home office & ESG

July 2024

In an interview with Sandra Thaler for the Augmentas blog, a specialist in training and coaching for managers, our partner and employment law expert Dr Alexander Insam talks about automation in the workplace, pitfalls with home office regulations and the role of mediation in German employment law.

Sandra Thaler: Dr Insam, what potential for conflict do you see with the introduction of AI/AI automation in the workplace and what solutions are there?

Alexander Insam: When discussing AI, it is important to differentiate between human and computer performance. This also harbours opportunities because people focus on communication and empathy. It harbours risks and new potential for conflict, because the density and speed of work will continue to increase. Resilience and time management as well as thinking in systems will become more important.

Sandra Thaler: From the employee's point of view, working from home has brought many freedoms. From the employer's perspective, where are the pitfalls with home office regulations and mobile working?

Alexander Insam: The biggest challenge with working from home and office work is finding the right balance. In my view, the right question is how well people can work. This relates on the one hand to the work result, i.e. the quality of the work, and on the other hand to teamwork. For example, as an experienced employee, I may be able to do my work very well on my own and always want to work from home because I can concentrate better there. From a team perspective, however, my office days often help beginners and newcomers because I am more available to answer questions and the inhibition threshold for approaching me is lowered. Chance encounters are often only possible in person. We are therefore seeing a trend towards team days and core working hours to enable chance encounters and learning experiences. In addition, a good office atmosphere also increases the willingness to help in the event of illness or conflict. Emotional resilience within the team and loyalty to the employer are strengthened. Managers are more challenged than ever to explain the right mix.

Sandra Thaler: What role does mediation play in German labour law and what advantages does it offer over traditional (court) proceedings?

Alexander Insam: In German labour law, conciliation boards play a major role in conflict management in the relationship between employers and works councils. A conciliation board is effectively an internal arbitration procedure with a third party, often a judge, as the decision-maker. Mediation is still used selectively. It also offers many advantages from an ESG perspective, as sustainable conflict resolution contributes to both the S for social and the G for governance of ESG. Compared to court and arbitration proceedings, better win-win solutions can be achieved, as the parties are not limited to one subject of dispute, but can look at the problem as a whole. With more ‘cake’, more solutions are often achieved. In addition, in-house mediation is the fastest procedure and often only takes a few hours or days instead of weeks or months. Incidentally, mediation and conflict management are also sustainable measures in terms of ESG reporting in accordance with CSRD and ESRS in the sustainability report. This is another good and topical reason for companies to take a closer look at mediation and conflict management.

Sandra Thaler: Thank you very much for your valuable insights and suggestions. We can fully endorse your answers and recognise the need for in-house mediation and resilience, especially in employee surveys and workshops, as well as the enormous importance of a balanced relationship between technology and human interaction and between home office and office work. 
 

Read the full blog post here (in German).

Augmentas Blog by Sandra Thaler

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