Blockchain has become a buzzword in today’s market. The reason behind its explosive growth is simple: it enables 100% transparency and simplifies the mind-numbing process of record keeping and transaction management in an easy, secure, and cheap environment.
Blockchain is playing a more central role on employee benefits, and for good reason. In this article, we will explore a few ways blockchain is impacting employee benefits.
Ease of Access
Thanks to blockchain, everyone who is on the network can see the information related to their benefits without needing assistance from someone else. Since blockchain completely decentralizes the data, it becomes impossible for one person or group to control the data and whatever happens to it. Everyone on the ledger has equal access and control over the data, including the employees.
This makes it possible for employs to transfer their funds from one account to another and access their payroll in real-time while being aware of all the benefits that are available to them. They can also view their history of performance and how it affects their benefits.
Authentication and Validation
Everyone on the ledger has to validate changes made to data. This makes it nearly impossible to tamper with histories and records. The results are faster, efficient, and secure approvals of payouts, reimbursements, and claims. This is important when third parties are involved such as medical and health-related areas. Furthermore, employees can focus on other areas such as approvals and sign-offs instead of waiting for follow up claims and tracking down bottlenecks.
Security and Compliance
Did you know that organizations worldwide lose millions to business email compromise (BEC) scams? This is when hackers impersonate an outside vendor or company executive, and they convince unwitting employees to pay invoices or wire money to accounts that hackers control. Most victims have no idea they’ve been tricked. This results in the loss of millions of dollars, with some organizations losing more than $30 million.
This is where blockchain is so important because it combines a multi-point authentication system with single-track automated processing, allowing HR across multiple industries to execute any contract. This minimizes the cost of tracking, modifying, and monitoring thousands of contracts under an employee benefit system, without affecting compliance with contractual obligations.
Better Personalization
Because blockchain links all online behaviors and transactions for each employee, one of the biggest things HR should be excited about is a richer and more robust unified profile for every employee. While AI technology is trying to make this a possibility, blockchain takes everything one step further by completely personalizing the benefits plan for every employee without extra cost.
Makes HR Department more Agile
Since the process of approval procedures have become simpler and faster thanks to process-driven automation, all the stakeholders can review and approve from a single ledger. This makes the HR department more agile in terms of focusing on value-adding activities such as employee engagement.
Want to stay on top of the latest trends on employee benefits, including blockchain? Get in touch with JS Benefits Group to learn more.
