The blockchain fad is growing, and while the technology is revolutionizing other departments, the HR and recruitment business is no exception. Blockchains are mostly associated with Bitcoin and other cryptocurrencies and have the power to disrupt everything you do online.
Technically, blockchain is a peer-to-peer decentralized digital ledger that can be viewed and verified by everyone. It is used to track all types of information and eliminates the involvement of the third party in the transactions.
Have A Look At Five Characteristics Of Blockchain:
- Distribution: The participants of blockchain are connected through a distributed network and operate from ‘nodes.’ Nodes are a computer that runs a program to define the business rules of a blockchain. It also keeps a copy of the ledger, which updates automatically with every new transaction.
- Encryption: Encryption is all about recording data securely. With this, clients can control their personal information and share what is only required.
- Immutability: Blockchain content is difficult to change once cryptographically signed, time-stamped, and added to the ledger. You can’t change the records unless the participants agree.
- Tokenization: The value is then exchanged in tokens, which represent the type of assets, including money, the user’s identity, and the units of data. Creating a token is a way through which the blockchain represents a currency for trading.
- Decentralization: Decentralization is a consensus mechanism that verifies and approves transactions, thereby eliminating the need of a central person to govern the network.
Here’s how blockchain impacts the functionality of HR:
It Helps With Recruitment:
Resumes are now the thing of the past; viewing grades, work history, certificates, and work experiences are easy to verify. This also means a blockchain-based verification system helps to reduce the time spend on minimizing frauds, conducting background checks, building trust, and more in recruitment. Also, recruitments take a lot of time and resources within HR.
Help Knowing Candidates History:
Job seekers often lie about their qualifications, while others show false work history to get their resume up. HR’s often do reference background checks to verify employment history, make multiple phone calls, and send long-drawn emails making the whole process quite time-consuming.
Also, it is very difficult to keep track of employees who are no longer working with the company. However, digital platforms like Veremark can be used for background checks. These platforms not only use blockchain technology but are also fast, transparent and convenient.
It Protects HR From Cybercriminals:
HR management services involve dealing with lots of sensitive, personal, and financial data. There might be information relating to health insurance, salary, banking, financing, and more. These things can be at risk of exploitation, but with blockchain, the ability of hackers to access private data is minimized. In fact, in some cases, it is completely eliminated as the records stored are decentralized.
It Improves The Attendance Data And Accuracy Of Time:
Blockchain ensures that all records are accurate and restricted to unauthorized changes. This ensures that the information about time and attendance is correct and cannot be tempered easily. HR departments can store information like biometric data, which will help in improving the payroll and time tracking systems.
Also, HR has the visibility to access real-time data, and there would not be an issue that the records are accurate.
To Pay In Cryptocurrency:
For the companies that hire globally, the idea of crypto-pay makes sense. This could also be a major cost-saver for HR’s if they regularly pay to international workers. Crypto-payroll also eliminates the costly fees that come with paying money internationally.
Blockchain is like a welcoming addition to HR, which help business focus on goals and objectives, thereby strengthening the role of Human Resources.
Put theory into Practice:
If you are looking to try a real-world implementation of Blockchain into your HR then there are several applications that you might want to explore:
- www.Veremark.com – a digital background and pre-employment screening service that enables you to check the credentials and work history of prospective employees along with other data points. These records are then hashed and stored on the blockchain providing you with complete security if either needed from a compliance or audit perspective that you had done the necessary checks. At the same time, the candidate is also given a blockchain-based career passport so that they can share and re-use the verified data points as well in case they ever need to.
- www.Workchain.io – a time and location app that enables you to also pay your staff and workers in real-time. Predominantly focused on the US and for blue-collar workers, the solution is great for those who do shift work and need to clock in and clock out.