How Blockchain Can Change HR Management
Since blockchain is a “native” technology for cryptocurrencies, the potential of decentralized solutions in the field of recruitment and corporate management is only being studied. Meanwhile, blockchain can become an effective tool for optimization or full automation of complex, labor-intensive business processes. These include recruitment and personnel management.
What’s Special about Blockchain?
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Application of Blockchain in Human Resource Management
The ability to safely store and exchange data is the greatest advantage of blockchain technologies that can be used to change the relationship between companies and employees significantly. A single decentralized system that collects reliable information about the education, skills and work experience of candidates greatly simplifies the recruitment process.
On the other hand, candidates for a particular position can easily demonstrate their competence without providing a resume, recommendations from previous workplaces, and even an interview. What is more, the use of blockchain technologies will also allow firms to more clearly coordinate work processes, boost employee engagement, and objectively assess labor productivity.
Taking into account all its features, the blockchain can be useful for solving the following tasks:
- Recruiting – Storage of education certificates and data on the candidate’s background, skills, and labor achievements in a decentralized verification system ensures the information accuracy. There is no need to search for contacts, calls, conduct numerous personal meetings, or analyze documents.
- Automation of messy personnel management processes, such as payroll, VAT administration, attendance control.
- Implementation of a business model for cooperation with freelancers working in the condition of absolute transparency and trust of all interested parties.
All in all, blockchain has all the features necessary for HR management and hiring processes.
Blockchain is the Future of Gig Economy
The operation of modern companies most often does not depend on their geographic location since remote work is becoming common in the business sector. The new model of the economy “Gig” economy allows a huge number of young talented professionals to offer their services to employers anywhere in the world and receive a decent reward for their work.
However, for this type of cooperation, it is necessary to ensure safe cross-border payments, pay taxes in accordance with the requirements of specific jurisdictions, and create a transparent ecosystem for trusting relationships between employees and companies. With the help of the blockchain, which is ideal for instant financial transactions with a minimum commission and compliance with all regulatory requirements, you can easily implement and control all work processes. At the same time, confidential information available exclusively to employers and remote workers is reliably protected from cyber threats and fraud.
Successful Blockchain Projects in the HR Sector
Several startups have already achieved good results in the development of blockchain solutions to increase the efficiency of personnel management and hiring processes. For example, Bitwage, a California-based Bitcoin payroll service, allows employers to pay for the work of remote and full-time employees in cryptocurrency without a bank account.
At the same point, the startup Etch has created a platform where all labor agreements are concluded in smart contracts, and salaries are automatically calculated and instantly sent to an Etch wallet or payment card.
Dream offers ready-made blockchain solutions based on machine learning technology that simplifies the selection of first-class specialists and receive financial support for a specific project.
There are also startups aimed at improving the transparency of the data of job seekers. Aspire, a London-based company has launched a recruiting blockchain platform that has collected only verified information about candidates, including a reference from previous employers.
Blockchain has enormous potential that should be used to transform the HR sphere. Startups have already laid a solid foundation for the further development of technology, and companies need to implement ready-made solutions or develop their own.