The demand for Blockchain in Human Resource (HR) is growing and is having its impact on the Human Resources function. While blockchain is widely associated with many forms of industries like, Music Industry, Tourism Industry, Banking
Manpower Recruitment is a time-consuming process and utilizes resources within the HR department, so much so that organizations hire third party agencies or recruiters to claim back the time. All this comes with a price and incurs expenses and are counterproductive. Looking into Resumes will be easier, grades, certificates, work history and experience will be easily verified and visible to people with direct involvement.
Checking and Verification
It has been found that a majority of early adopters of blockchain in Human Resource (HR) sector currently use it to verify digital identities and this is because the data stored comes from trusted sources such as authorized institutes. Being able to verify individuals’ identities, background and work experience alongside real-time information relating to pay and claims will undoubtedly free up some much needed time to allow HR to focus on the more strategic goals of the business.
The process of employee referencing has gone for big change a lot over the years and it looks likely to change again in the near future. As HR will have access to a candidate’s employment record that is accurate and reportedly impossible to falsify, the referencing process will become more transparent and address fraudulent credentials, increasing the chances of you hiring talent better suited to the business.
It has been found and reported that high numbers of early adopters of blockchain are already utilizing smart contracts within their organizations. Smart contracts between an employer and its workforce will make it possible for workers to be paid automatically this is by virtue of a code which will determine what happens to the money once it comes in and certain conditions are created. The distribution of wages can happen instantly with no risk of delays or fraud.
Employee data records
The current procedure to hire and on-board a new recruit is lengthy. From conducting the interviews, checking qualifications, validating work background and gathering references or applying for the necessary security checks – it all so time-consuming. This process continues throughout employment. As blockchain would already have stored all of this important validated information, it would significantly reduce the time and energy spent on this process, easing the whole HR experience.
Assured and Secured Transactions
All transactions in a blockchain setting can be anything from an exchange of personal information, work history, records to financial details and crypto-currencies. The capabilities of cyber-security are changing the future of these transactions as the information stored on blockchain technology is secured through cryptography which makes it extremely difficult to tamper with.
The blockchain technology is used to store biometric data, such as a fingerprint or iris scan, for legal ID and record and data storage. Organizations could use this technique of storing unique employee data to track attendance and expenses for wages and claim purposes. Human resources would have visibility to the real-time data and there would be no dispute that the records are accurate, strengthening the trust element in payment authorization and looking into claims made.
Compliance & Auditing
With the data stored within the blockchain already accurate and validated, audit checks for compliance would be easy to conduct and readily visible to those authorized. It looks like blockchain technology would be a welcome addition to HR that is likely to free up time and resources needed to focus on core business goals and objectives whilst strengthening the role of HR as a strategic partner.
With the introduction of blockchain in Human Resource (HR) segments, the operations have become pretty safe and streamlined, transactions have become safe and records are easily accessible. In case, you are looking to understand blockchain’s implications in HR sector in more detail, drop us an email on [email protected] or schedule a free consultation with our team of blockchain experts who can guide you through the blockchain implementation in a specific use case.