When most people think of blockchain technology, they think of the tech used to protect cryptocurrency infrastructure. But the technology is so much more than that.
Blockchain tech is impacting the world of human resources management in numerous ways. These are just some that are making headlines.
HR teams are responsible for several processes that require security. The teams handle sensitive employee data related to healthcare, remuneration, banking, performance records, and a great deal more.
This makes HR departments particularly vulnerable to security breaches and exploitation. But organisations are hailing blockchain tech to be a prime solution in their efforts to increase cybersecurity.
This special tech can prevent fraud both internally and externally. Blockchain is ideal for this purpose because of how it is restricted and controlled. This makes it impossible for anyone to make arbitrary changes.
Recruitment can be a time-consuming process for any HR department.
Blockchain tech has the potential to bring numerous benefits to the table. Below are a number of key ways in which blockchain can streamline the recruitment process:
Blockchain tech can provide a decentralised platform for job applicants to create and store their digital (online) identities on the ledger.
These identities can then be verified and stored on the blockchain, thereby creating an indisputable and secure record of every candidate’s qualifications and important info.
Furthermore, blockchain can enhance the entire hiring process by facilitating smart contracts. These are basically self-executing contracts with predefined conditions built into their make-up. Several HR processes, including offer letters, auto payments, and even salary negotiations, can be automated using smart contracts.
Blockchain technology can empower employees by affording them greater control over their own personal records.
By using a secure and central platform, employees can enjoy ownership of their personal data as well as instant access to their available records. What’s more, they can choose what to share with their HR department.
This can greatly decrease their dependence on the HR department, thereby saving time and increasing trust for everyone involved in the HR process.