Blockchain technology is disrupting the entire internet as you know it. Companies like IBM, Microsoft, Toyota, JP Morgan, and Accenture are tripping over themselves trying to build products and services that take advantage of this innovation. Which brings forth a question: Is this the next technology revolution? What does it mean for HR technology?
Blockchain Technology Paves Way for Revolution in HR and Recruiting
Here are a few areas where you might see disruption first:
LinkedIn is the perfect example of a centralized network that hoards your data and sells it back to you. We’ll see a decentralized social network that puts your data back under your control and potentially allows you to monetize your expertise via micropayments for contributing content, comments, or performing tasks. An emerging example of this is Stem.
Identity Verification and Background
The background check is a slow and expensive process, and is a burden to the candidate who has to fill out the authorization forms. In the future, a candidate could have all of their personal information pre-validated and stored on a secure blockchain application. Once the verification is completed, the information could be automatically accessed by an organization for free because the candidate owns the data and can grant access.
Resume Validation and Accessibility
We pay job boards for access to the resumes housed in their databases, but the candidates who own the resumes don’t have much control over who sees their information or what is done with it. On the recruiter side, some databases are filled with fake resumes. We’ll start to see companies build a decentralized database of resumes, owned and controlled by candidates and authenticated by blockchain.
Goodwill Hunt Through Blockchain Technology
The weakness in the distributed resume lies in lower-level employees who don’t necessarily have a job history that may demonstrate their value to an organization. However, blockchain could be used to provide verifiable information on a candidate’s educational history and qualifications that would reduce the risk of fraud while eliminating the need for applicants to provide official transcripts. Such a transformation of the way we recruit and hire would require significant changes in the way we run that function.
Transform the Way We Manage Businesses
Beyond the benefits to HR, blockchain is poised to transform the way business is done in several areas. Functions within a company that was dedicated to verification, administrative documentation, and coordination of those functions, would be unnecessary. This would necessarily transform the structure of many businesses, which the HR function would naturally lead. Blockchain has the potential to reduce transactional costs not only in financial terms but in terms of productivity as well.
Preparing for Tomorrow
Blockchain’s applications for HR are important and could affect various functions such as hiring. As with most technological innovations, we can’t know for certain how the rollout will affect our various businesses. What is important is gaining a solid understanding of emerging technology and staying up to speed on the ramifications for business to ensure that when change comes, you’re ready to embrace it.
Impact of Blockchain Technology on the Future of Work
There’s a lot of work that goes into the talent acquisition process – verifying information and credentials submitted by job candidates is a heinous task. Blockchain’s impact on HR and the future of work can likely be significant. However, it’s important to keep in mind that Blockchain has its limits. As long as there are humans involved in the process, there is always the potential for error.
When it comes to the business of talent management, blockchain can be used to track certifications, continuing education, training, and the like for existing employees. The advantage of integrating blockchain into the HR records management process is that these stored files can never be deleted or overwritten— As a chain can have a block added to it, only if everybody within that chain agrees that the information in the block is true. Blockchain will play a fundamental role in creating trust.
The management of transactional data occupies an enormous role in the HR operations of a company, and blockchain can help make those transactions quick, efficient, and secure. Whether it’s employee payroll, tax information, vacation and sick time tracking, timesheets, medical information, —most processes streamlined and made more secure using blockchain technology. To know how blockchain technology can help your business, contact Techruit Solutions today.
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