HR and blockchain can be a very beneficial combination.
Many companies adopted the blockchain technology for the advantages that are far beyond smooth processes and transparent transaction.
That means beyond what our typical systems can offer.
The use of blockchain is not limited to financial transactions and cryptocurrencies.
Many departments can benefit from blockchain technology, particularly Human Resources.
The HR department can leverage the ample benefits of the implementation of blockchain technology.
What is Blockchain?
We can loosely interpret blockchain as the digital, decentralised platform for records keeping in a public database transactions manner.
However, the application of the technology is not limited.
Maersk, recently, partnered with IBM to commercialise the blockchain technology. They use it to track their cargo through the supply chain.
Similarly, the incorporation of blockchain in the Human Resource industry will be the harbinger of a new era.
Here are a few ways we can marry the two to gain business excellence.
Speed up and simplify background and credentials verification process
The candidate background verification process is tedious.
During recruitment, the confirmation is usually done manually or by a third-party.
The process becomes exhaustive for both parties. They need to fill up the authorisation forms and check them manually.
On inclusion of blockchain technology, the candidates can store their
- identity proofs,
- qualification documents,
- certificate of experience,
- previous salary break-ups, and
- visa status on the platform.
Job seekers can choose to share the information with the company they apply for a job.
The HR Manager will be able to verify the documents directly from the blocks.
Thus, eliminating the need for a third-party. All done while retaining top-most data security and privacy on the decentralised platform.
Facilitate talent pool hunting and management
HR and blockchain help the workforce team to access big data on the decentralised platform.
Then, easily match them against the company requirements with a few critical data points.
In case of any referrals, they can authenticate them too.
It will also become easier for the HR management team to
- check candidates’ key profile
- recommendations and referrals
- contributions to the community
- participations in contests
- awards and accolades received
All these are private and secured.
Also, the data only belongs to one person who carries the ‘hardware wallet’.
But they are authentic. Reason being that what’s in the hardware also appears in every the decentralised platform.
Make paperless onboarding
The application of blockchain in HR technology will also be environment-friendly.
Usually, candidates are required to provide the original copies of all their documents. Plus, the photocopied ones for their future employer to keep.
- Awards Paper
- Education Credentials
- Residential Address Proofs
With the security and authenticity offered using blockchain technology, you don’t need any paper as proofs of validity.
All you need is the hardware. Of which you can use to contain all your documents. Then, you don’t have to worry about security issues or how to authenticate them.
Improve payroll management
With the implementation of blockchain, HR departments do not need to send out payroll the traditional way—paper or electronic.
For overseas employees, the process is expensive. And it takes up more time through third parties and intermediary banks.
Furthermore, currency volatility is also an issue here.
Consequently, it affects both the employee and the company. Moreover, usually only intermediaries benefit most from the exchanges rates.
Besides, it also eliminates the challenges faced by HR. Specifically, the blockchain technology allows faster, secured, and ‘borderless’ transaction.
Ensure Data Security
Like all the other departments, HR also faces data security challenges.
Unfortunately, confidential information can still be compromised when stored in computer systems. Same goes to the cloud platform.
However, data once recorded on the blocks cannot be changed or faked. Data will be secured, and cybercriminals will not deter the system.
Additionally, a multi-layer verification process to the structure will further strengthen the system.
HR and Blockchain Fit Perfectly
HR being a data-intensive function, can benefit from the technology in several other ways.
Smart contracts and computer protocols will assist in
- the management and transfer of digital contracts, and
- the blockchain will store them eventually.
In the present scenario, it seems that HR functions will be limited to data storage and verification of information.
Therefore, mass acceptance of the blockchain in business operations will allow HR application in deeper incorporation.
As a result, better employers verification, salary information, history and more.