Blockchain Tech Changing The Face Of HR

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.

Security

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

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:

• Improved data security. This is a huge concern in the recruitment process, as the personal and sometimes sensitive information of employers and job seekers is freely exchanged. By implementing blockchain technology, data is secured. Once data is recorded on the blockchain it cannot be altered or tampered with in any other way. This ensures a reduced risk of identity theft.
• Verification of credentials. By using blockchain, companies can streamline the verification process of credentials like work and education experience. This can completely eliminate any need for manual verification, and thereby reduce the risk of fraudulent resumes making their way into the system.
• Bias reduction. Bias, including the unconscious variety, is a rampant issue that can have a negative impact on diversity and inclusion in the workplace.
• Better payroll management. Smart contracts can automatically activate payments based on a set of pre-defined criteria – such as work hours, compensation agreements, performance metrics, etc. This eliminates the need for manual payroll processing, thereby reducing the potential for disputes and errors.

Everything Central

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.

More Power To Employees

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.