How Blockchain Could Transform The HR Industry?
Blockchain has become a very popular concept in the past few years and has gained a lot of recognition from many industries. It is best known to be the key technology for the transaction of bitcoins and other such cryptocurrencies, but aside from that, it actually has a number of other applications and potential uses –including the potential to change the face of HR industry as well.
In other words, blockchain has the potential ability to transform the way firms hire temporary workers. It wouldn’t be long until hiring these reliable temporary workers becomes faster, efficient and a whole lot easier.
But to begin, what exactly is blockchain?
It is a distributed ledger network where information is stored in batches, or “blocks”. These are connected together in a structure chronologically in a “chain” (therefore, “blockchain”). The details in a block cannot be deleted or modified; rather, modifications get stored in new blocks altogether.
Replications of the blockchain are made available across a network of computers, which verify the details in every
These characteristics suggestthat information stored onablockchain is transparent, secureand trusted—so how couldit help make workplacesmore effective and efficient?
1. Hire reliable temporary workers fast
Trusted job history-
Temporary employees are the key parts of various modern companies, nut finding efficient and reliable temporary workers most times take as long as sourcing full-time workers. It could prove to be easier for staffing agencies or HR teams to source and verify qualified temporary workers quickly if candidates are able to put their credentials on a blockchain network.
Employers would put updates and job titles, while universities would upload certificates and degrees. Extra information like a background police check could to uploaded on the blockchain as well. Therefore, these records would be easily available to staffing agencies.
Recruiters would not need to spend resources and time calling previous managers to verify the information as the information on the blockchain will already be verified at the source. Although, it’s important to keep in mind that this system will need to be on an opt-in basis. Candidates who are uncomfortable putting details about themselves on the blockchain will need to be protected.
A few start-ups have already started to develop such tools for hiring agencies for implementing blockchain. Ascribe and Recruit Technologies have integrated to create a resume authentication service on blockchain for candidates, which would digitally verify official resumes and certificates.
But it is worth nothing that all employers and universities will not adopt blockchain technology at once. HR professionals will still need to verify the candidates’ history, making use of blockchain verification as part of the process. Blockchain will simply provide support to traditional forms of background verification and will prove to be a powerful tool for them.
A digital ID-
When oneusesthe internet, theyleave a trailof informationbehind them. Wearing a smartwatch to track your exercise, downloading and using anapp,or streaming your favourite show leavedigital footprints everywhere. Today, manycommonitems—including your car and your fridge—may also be connectedone way or anotherto the internet.
This data notes our habits, likes and dislikes, skills and interests. Putting up these details on a blockchain could create a “digital dossier” of a job hunter’s hiring potential by making available more details than an interview or cover letter would reveal. Again, this would not eliminate the HR’s job, but will help with it
2. Easier and more effective salary payments
If you happen to have an international candidate, you must be aware that overseas payroll payments inefficient and most importantly, expensive. International bank transfers take a long time to process. Also, they incur bank charges, andyou could experience volatility in currency exchange, which could all cause a hassle for the employer and employee both.
Payment transfers through blockchain, on the other hand, could make international payroll easier and efficient. By partnering with banks and financial institutes around the globe, Bitwage transforms money to bitcoin, which can then be paid in local currencies. Payments are quicker and require very fewer transaction fees, onlyabout1% compared to the average of 8% for bank transfers. Further, as the payrolls are transferred via bitcoin, they can be tracked so you would come to know the staff has received their wages.
Gender pay gap-
A Pew Research Centre whichstudied theaverage hourly earnings of full-timeand part-time workersin the USA,found thatin 2017,women earned18% less than mendid. In the same year, the global average pay was $12,000 for women and $21,000 for men.
Blockchain could improve this huge pay gap by making work performances and salaries all the more transparent. As workplaces implement connected devices more, more information will be available to them to help track employee performance. Employers could then track the working hours, projects progressed, and meetings scheduled and attended. This will make it easier to decide
Moreover, salaries and bonuses would betransparent if they areuploaded on an open blockchain.
3. Help employers outsource tasks
Start-ups are hinting at the possibilities of using bitcoin for outsourcing work. For example, Earn.com allows people to earn cryptocurrency by completing tasks and replying to
Improvising the idea further, workplaces could use a blockchain network to track work procured, having a verified record of all the completed tasks. This would boost transparency and trust between employers and employees. A majority of these start-ups are in the early stages of building and scaling their product even now, and it is still early for adopting and applying blockchain. However, we are excited to try these new technologies for our own businesses as they become available everywhere. It will definitely not happen overnight, but blockchain clearly has the potential to revolutionize