How Can Blockchain Benefit Human Resource Management
Blockchain innovation is maybe the most well-known for its impact in safeguarding the cryptocurrency infrastructure: making financial transactions secure without the participation of a bank or middleman. If its success in banking and supply chain is any indication, blockchain is ready to advance the methods of people management.
As blockchain technology becomes more accessible, more participants of people management process will likely find it disrupting their daily workflows, including the recruitment process, tapping talent pools, capabilities assessment, verifying employment history, engaging contract workers with smart contracts, maintaining employee data, maintaining employees’ personal data, and many more.
Now is the time that the industry is piloting and envisioning various use cases.
• Reinforce security for sensitive personal & financial data Blockchain's distinct advantage for HR is characterized by its security capacities. Implementing blockchain can help avoid both internal fraud and outer hacks of the sensitive employee data. Access to the blockchain is restricted and controlled and even those with access can't discretionarily make changes to the record. This limits both internal fraud and external hacks of sensitive employee records.
• Improve recruiting processes, assessment of job qualifications & background checks. Perhaps the greatest advantage that blockchain can offer trust in the veracity of its data. Many people management experts can affirm, conducting a traditional background check can be slow and costly. It can also place a burden on candidates, requiring numerous forms to be filled out. Blockchain can decrease the work and cost presently associated with background checks. The advantage of blockchain is also passed on to candidates in the form of confidence, allowing them to apply to roles that they know they are qualified for. It mitigates the worry that different candidates may be advancing beyond them by applying to the same job with fraudulent resumes and qualifications. This transparency levels the playing field for all candidates.
• Streamline payroll, contractor payments & vendor tracking. One of the most widely recognized use cases for blockchain HR includes an organization's biggest cost and the procedure that representatives value the most: finance. Blockchain has the power to replace many of the manual tasks and eliminate time lags within current payroll systems. Blockchain additionally offers ‘smart contract’ solutions that allow an organization to automate and secure payments to contractors and vendors. The smart contract functions as a guarantee that work is completed and that the payment will make it to the employee, contractor, or vendor properly and in a timely fashion.
Blockchain could fundamentally change how we manage people and HR. I am looking forward to seeing how this develops, and maybe hearing feedback from experts in HR industry if blockchain disrupts the recruitment industry and what is the chance it happens soon.