Can HR and Blockchain Technology Blend In?

The blockchain technology is already being adopted by several companies to make the transaction processes smooth and transparent. The use of this technology is not limited to financial transactions and cryptocurrencies only. The technology can, in fact, be incorporated into several departments like the HR as well. Blockchain can be simplified as the digital, decentralised platform that has the capability of keeping all records and can act as the public database of transactions. However, the application of the technology is not just limited to that. Maersk has recently partnered with IBM to commercialise the blockchain technology to track their cargo through the supply chain.

Similarly, the Incorporation of blockchain technology in Human Resource industry will be the harbinger of a new era.

Current HR Challenges and Blockchain Technology Solutions



Background and Credentials Verification Process


The background verification process of a candidate during recruitment often becomes tedious as it usually takes a manual or third-party intervention. The process becomes exhaustive for both sides as the need to manually fill the authorization forms and check them still exists. On inclusion of blockchain technology, the candidates can store their identity proofs, qualification documents and certificate of experience, previous salary break-ups and visa status on the platform. The job seekers can choose to share the information with the company they are applying at. Being a transparent decentralized platform, the HR management will be able to verify the documents directly from the blocks, eliminating the third-party.


Talent pool hunting and management


Blockchain technology will help the HR team to access information on the decentralized platform and match them against the company requirements. In case of any referrals, they will be able to authenticate them also. Checking out the key profile, recommendations and the candidate’s contribution to the community groups, participation in contests will all become easier for the HR management.


Paperless On-boarding


The application of blockchain in the HR technology will also be environment-friendly. This is how- saving the certificates, education credentials, identity and address proofs on the blocks does not require any paper.


Payroll Management


Implementation of blockchain technology will no longer see the HR department sending out payroll electronically in the traditional method. In the case of overseas employees, the process is expensive and takes up more time due to the intervention of third parties and intermediary banks. Currency volatility is also an issue here. It affects both the employee and the company as intermediaries benefit most from the changes in the exchanges rates. This challenge faced by the HR will be eliminated as the blockchain technology allows for a much faster transaction process.


Data Security


Like all the other departments, the HR management faces data security challenges as well. Important and confidential information can also be compromised when stored in computer systems or even on a cloud platform. However, data once recorded on the blocks cannot be changed or faked. Data will be secured and the system will not be deterred by cybercriminals. A multi-layer verification process added to the structure will further strengthen the system.

HR being a data-intensive function can benefit from technology in several other ways. Smart contracts and computer protocols will assist in the management and transfer of digital currents that will be finally stored on the blockchain. In the present scenario, it seems that HR functions will be limited to data storage and verification of information. However, mass acceptance of the blockchain technology in the companies and institutions will see its application by the HR space in employer verification, salary information, and history.

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Amos Tay

Amos Tay

I have over 10 years’ experience in the Logistics and Transportation industry working both as an in-house HR professional as well as an external recruiter. I have a Gallup CliftonStrength certified coach. Connect with me for your next Logistics & Supply Chain hiring role.

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