In today’s rapidly evolving business environment, talent acquisition (TA) leaders face immense pressure to address dynamic workforce needs, demographic challenges, and the integration of cutting-edge technology. Kirsten Wagner, Executive VP of Talent Acquisition at Deutsche Bahn, offers a masterclass in embracing innovation and transforming TA practices – balancing AI-driven efficiencies with a human-centered approach.

This article explores her insights on redefining recruitment strategies using AI, fostering a culture of innovation, and addressing future workforce complexities. Whether you’re a decision-maker, HR leader, or a tech-savvy recruiter, Wagner’s philosophy provides a roadmap for a forward-thinking, transformative approach to talent acquisition.

A New Era of Talent Acquisition: The Challenges

As businesses grapple with shifting workforce dynamics, the demands on TA teams are intensifying. Wagner outlines three main challenges driving Deutsche Bahn’s hiring landscape:

  1. Demographic Change: With an aging workforce (average employee age of 45) and impending retirements, replacing outgoing talent is critical.
  2. Growth Demands: Deutsche Bahn’s expanding operations necessitate hiring over 20,000 employees annually.
  3. New Roles and Skills: The emergence of tech-driven roles such as data scientists and cybersecurity experts has created additional hiring complexity.

Parallel to these challenges, Germany’s labor market faces a stark dichotomy: a shortage of workers in specialized fields like tech and blue-collar professions, contrasted with an oversupply in other areas.

"Candidates are also changing", Wagner notes. "Their expectations regarding work culture, collaboration, and opportunities are evolving, and we must adapt to meet them."

AI as a Catalyst for Transformation

Wagner highlights AI and automation as pivotal tools for modernizing recruitment processes. However, her approach avoids broad, top-down implementation. Instead, Deutsche Bahn’s strategy focuses on micro-innovations – small, incremental AI-driven improvements that, when aggregated, deliver substantial gains.

Micro-Innovations in Action

Rather than investing in "one-size-fits-all" enterprise solutions, Deutsche Bahn empowers employees to identify specific recruitment inefficiencies and propose AI-based solutions. This bottom-up approach fosters creativity and ownership.

For example:

  • Robotic Process Automation (RPA): Automating time-consuming administrative tasks, like managing application lists, frees recruiters to focus on meaningful candidate interactions.
  • AI-Driven Candidate Matching: Use of AI tools to identify the best-fit candidates based on data analysis, leading to faster placements and improved hiring decisions.
  • Prompting Experiments: Recruiters experiment with AI-generated prompts to enhance communication and engagement with candidates.

Wagner likens innovation to "thinking big" initially, followed by iterative experimentation: "There is no such thing as too crazy an idea. What matters is whether the idea addresses a genuine problem and improves outcomes."

The Human Factor: AI Enhances, Not Replaces

While AI enhances recruitment processes, Wagner emphasizes the irreplaceable value of human connections. "Humans want to talk to humans", she asserts. For candidates, understanding workplace culture and team dynamics often plays a pivotal role in accepting job offers.

Striking the ideal balance between AI-driven automation and human interaction is central to Wagner’s philosophy. AI solves repetitive tasks and efficiency bottlenecks, but it cannot replicate the nuanced, empathetic conversations that great recruiters bring to the table.

Applying Freed-Up Time to Human-Centric Practices

By automating routine tasks, recruiters can focus on building relationships and delivering authentic candidate experiences. For example:

  • Community Engagement: Developing localized hiring strategies for small towns rather than relying solely on large-scale campaigns.
  • Cultural Conversations: Engaging personally with candidates to convey company values and culture.
  • Tailored Solutions: Addressing individual candidate needs, such as language training and relocation support.

Diversity and Untapped Talent Pools

To overcome tight labor markets, Deutsche Bahn is also innovating in expanding their talent pipeline, targeting underrepresented groups and exploring untapped pools.

Strategies to Expand Talent Pipelines

  1. Hiring from Overseas: Recruiting from 15 countries, with customized support for cultural integration, language training, and relocation requirements.
  2. Focusing on Diverse Groups: Targeted campaigns for women, individuals aged 50+, and those with migration backgrounds.
  3. Upskilling Programs: Offering fast-track training programs, such as 12-month certifications for train drivers, enables career switches and draws a broader pool of applicants.

"Addressing these underutilized groups not only helps solve hiring challenges but also enriches the diversity of our workforce", Wagner explains.

Building an Innovation-Driven Team

Wagner attributes much of Deutsche Bahn’s success to its learning-oriented, inclusive internal culture. Her team of 800 doesn’t just execute; they lead change.

Fostering a Learning Culture

  1. Dedicated Learning Time: Every Monday morning, employees dedicate two hours to training, upskilling, or sharing knowledge. This ensures continuous learning is prioritized, not deprioritized.
  2. Internal Academy: Experts within the team run workshops on topics like AI prompt engineering, data analysis, and innovation techniques.
  3. Flat Hierarchies: Encouraging open dialogues and solution-oriented discussions fosters creativity and trust.

"Creating an environment where innovation thrives starts with leadership", Wagner emphasizes. Leaders must be role models, actively embracing change and encouraging bold thinking.

Looking Ahead: The Future of AI and Recruitment

As AI continues to reshape industries, Wagner predicts significant shifts in recruitment processes:

  • Job Revolution: AI and automation will alter most roles, requiring TA teams to adapt rapidly.
  • The Hybrid Model: A balanced approach will merge AI’s efficiency with human empathy, ensuring candidates feel valued while processes remain productive.
  • Continuous Innovation: Teams must stay agile and open to change, experimenting with new ideas to meet evolving market demands.

"AI can transform recruitment", Wagner concludes, "but humans will always be central to the process. It’s about using technology to amplify what we do best, not replace it."

Key Takeaways

  • Demographic Challenges: An aging workforce and emerging job roles demand innovative hiring solutions.
  • Micro-Innovations with AI: Empower recruiters to identify and implement small, impactful AI-driven improvements.
  • Human-Centric Recruitment: Automation frees up time for recruiters to build genuine connections with candidates.
  • Expanding Talent Pipelines: Focus on diversity, overseas hiring, and upskilling programs to access untapped talent pools.
  • Culture of Learning: Dedicate time for continuous learning and foster open, solution-driven dialogues within teams.
  • Balancing AI and Human Interaction: Use AI to optimize processes while maintaining the human touch in recruitment.

Actionable Insights for Leaders

  1. Encourage Innovation: Create environments where employees at all levels feel empowered to propose and test new ideas.
  2. Invest in AI Use Cases: Start small, automating repetitive tasks to improve efficiency.
  3. Build Diverse Pipelines: Address overlooked talent groups and provide targeted support for integration and training.
  4. Prioritize Learning: Allocate dedicated time for training and upskilling to keep teams agile and future-ready.
  5. Embrace Balance: Use technology strategically while preserving the human element in candidate engagement and decision-making.

By rethinking recruitment strategies and embracing the potential of technology, leaders can turn today’s challenges into tomorrow’s opportunities. Kirsten Wagner’s approach provides an inspiring blueprint for transforming talent acquisition into a driver of organizational excellence.

Source: "Kerstin Wagner on Transforming Talent Acquisition at Deutsche Bahn" – SocialTalent, YouTube, Sep 12, 2025 – https://www.youtube.com/watch?v=SaeZv-dpdPc

Related Blog Posts