Professionals continue to grapple with the challenges presented by ever-changing technology and the disruption of human resources. One of the newest technologies to significantly impact the HR community is Blockchain.
Blockchain provides a decentralized and secure ledger which gives participating parties a way of validating the information related to a transaction. In doing so, it speeds up the process and cuts out any middleman…
You can think of it as a database that keeps information in such a way that it’s almost impossible to change once recorded.
Err, that may sound a bit complex… We will simplify this, just stay with us!
If we fully utilize blockchain’s capabilities, the technology will create more accurate and effective approaches to just about everything in Human Resources. From big-picture areas like hiring and taxes to smaller scale tasks like payroll, there are so many important human resource applications that the blockchain will change.
Blockchain Technology Can Revolutionize HR
Here’s how Blockchain Technology will be able to change the face of HR.
1. Blockchain Will Change Job Search And Hiring:
Most hiring portals are in the user data business today. Companies like LinkedIn and Facebook aggregate data about their users and provides services based on that information.
As more information moves to the blockchain, businesses that depend on aggregated data wouldn’t have the same level of influence. It will change the power dynamics of the hiring game.
Instead of an applicant writing up a description of where they have worked and what they have done, blockchain transactions will simply store all of their employment history. This will totally transform the way companies recruit candidates.
- Human resources will have direct access to candidate data.
- There will be no need for a lengthy verification process where HR offices call references to confirm employment history. They can simply pull up the public blockchain.
- This will speed up the process and reduce the current average turnaround time of 3 days to a few hours.
Candidates won’t be able to adjust or alter their resumes based on the specific job they are applying to. This means manipulation of data will be minimized, and a truer picture of the candidate will be reflected. Information such as reasons for leaving previous jobs, education, certificates and even performance evaluation can be stored on the blockchain.
Blockchains can help create a more efficient, resume-less ecosystem.
2. Blockchain Will Streamline Routine Tasks:
The blockchain is changing various aspects of financial transactions and legal contracts. When human resources are dealing with an international workforce, they have to deal with the banking laws of each and every country.
Blockchains can help improve the flow of transactions using smart contracts which can automatically carry out predetermined terms. Both parties would be guaranteed that the other side would uphold those terms without having to spend as much time ensuring paper oversight.
Everything from tracking payroll to issuing paychecks to managing contracts is more efficient with blockchain. It provides a trustworthy alternative for payroll transactions without all the headaches of central databases.
As cryptocurrencies gain more acceptance, it will be possible to manage financial transactions without banks and governments. It will help HR departments maintain worldwide workforces more efficiently.
With the help of companies like ‘Bitwage’, blockchain is being used for cross-border payments using bitcoin. The company allows employees or contractors all over the world to be paid by employers with their currency of choice.
3. Blockchain Will Automate Tasks:
Companies are hiring global workforces, contractors and temporary workers. Such diversity leads to more paperwork to handle and more complications. Along with taking a lot of time, keeping track of headcounts and tax rules are a huge burden for the HR.
When dealing with tax issues, a large amount of time is also spent in ensuring all the tracked data is correct. Verifying data across departments is a tedious task.
Blockchains help keep track of records in a distributed manner and maintain information more cohesively. Also, information once entered on the blockchain will never be lost.
The blockchain is a fair and accountable system where nothing slips through the cracks. It can track a person’s income and purchases, and reset his tax rates accordingly in real time based on how much he is earning. This will reduce the year-end hustle and you don’t have to save every single piece of paper reflecting your expenses.
4. Fraud Prevention, Cybersecurity And Data Protection:
HR deals heavily in personnel and financial data. This makes HR departments a prime target for hackers and cybercriminals.
Blockchain severely cripples their ability to attack and cause mayhem with someone’s personal data. Because of blockchain’s attributes, the threat of cyber attacks and other fears will be addressed majorly.
The blockchain is primed to cause disruption. It’s cheaper and more effective than standard time-intensive and people-intensive methods. It makes people’s lives easier. It won’t be wrong to mention again that Blockchain will most certainly revolutionize HR Industry, if not completely remove the ‘Human’ aspect out of Human Resources.