Blockchain is the latest buzz that has taken the world by storm. While it is commonly associated with cryptocurrencies such as Bitcoin and Litecoin, it has an important role in HR tasks and recruitment operations within businesses. Below are five ways blockchain will impact HR tasks.
Many organizations struggle with handling their recruitment processes. It can be so tough that some companies turn to recruiters or third-party agencies to cut back on the time. However, this practice can come at a hefty cost and be very counterproductive.
Blockchain makes things substantially easier by allowing candidates to have all their personal information such as home addresses, degrees, certifications, social security number, visa status, and transcripts validated and securely stored on a blockchain platform. This automatically gets rid of all the processes and streamlines the majority of them.
Resumes and CVs will be phased out as all the candidate information will be visible to authorized personnel.
2) Verification of Information
Most HR departments that have adopted blockchain technology use the platform to verify candidate information and digital identities. The stored data comes from authorized institutes and trusted sources.
Being able to verify a candidate’s identities, work experience, and background information in real-time will free up the much needed resourced from HR so they can focus on more core operations of the businesses.
Since HR has access to a potential candidate’s complete employment records on secure blockchain platforms, it would be impossible to falsify information. This also applies to the referencing process, which becomes transparent enough to address fraudulent claims, making it more likely for you to hire talent better suited to the company.
4) Smart Contracts
Smart contracts make it easier for businesses to instantly pay its employees by using codes that will unlock access to their paycheck once certain conditions are fulfilled. This process can take instantly and without any risk of fraud or delays.
Of particular importance to businesses is the fact that they won’t have to integrate gig workers with their payroll system, and can outline the terms of their contract upfront while retaining the ability to instantly turn off any contract at a moment’s notice.
5) Employee Life Cycle
As is true for most recruitment operations, the entire process is extremely lengthy. From conducting interviews, to validating qualifications, to checking work background, and verifying references – it definitely takes time.
This process drags on into their employment as well, in case when the role changes or new qualifications are acquired, and when the employee exits the company.
The employee’s old data can come back to haunt you as you’re requested to forward some of their data to new employers for their checks on the individual – this renewing the process all over again.
Since the blockchain platform already holds some of this validated information, it would easily reduce the energy and time spent on the process, making the whole HR experience a lot simpler.