What makes blockchain appealing to HR professionals?
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Hold on!!! How does blockchain come into play when we’re talking about recruitment and hiring processes? Since blockchain is changing the way businesses operate, who says it cannot have a deep correlation with the HR process? In this article, Ankit Patel explains why blockchain can become an asset to the HR department.
Finding and recruiting the right candidate is not a cakewalk. In fact, recruitment is a tedious job! However, it is the rock-solid backbone of the corporate world, which includes all business verticals. It takes a lot of efforts to hire the right candidate, and it is a pain point for the HR team and employers globally.
The existing hiring process has a lot of issues, and it’s been the same for decades. Today, we’re talking about mobility and even discussing how employers and job seekers can profit from the advancement of online services to overcome these issues.
What is wrong with the current hiring process?
Lack of trust between employee and employer is one of the first concerns. Both parties are forced to show faith in each other even though both are having a lot of doubts.
Reference check could be a possible solution to overcome the trust issue, but is it flawless? Well, unfortunately, it has flaws. It is possible that a candidate may lie about their education, work experience and produce fake references. In this case, there is no way you can catch the truth behind the lie.
Aside from this, what about the overall cost and time spent on the lengthy exercise of hiring the right resource at the right time? What about the feeling of uncertainty of existing HR process? Well, to overcome all these issues, we must think out-of-the-box and use emerging technologies such as blockchain to improve the hiring process.
Hold on!!! How does blockchain come into play when we’re talking about recruitment and hiring process?
Well, it does have a deep correlation with the HR process. And it could be the perfect solution to overcome the backlogs of existing methods and eventually improve the hiring process. Let’s see how it does that.
The blockchain is changing the way businesses operate. With the help of its decentralized database and powerful internal system to manage the information stored, it is fascinating for many industries and businesses across the globe. But what can this emerging technology bring to the HR process?
What makes blockchain suitable and appealing to the HR professionals?
Of course, there are some issues and concerns, mainly with payment and capital markets but if we take a look at the other side of the coin, it has a bag full of goodies for the HR department. Instead of focusing on what can go wrong, if we look at the benefits blockchain brings, it is possible to identify and address the pain points and backlogs of the existing HR process.
This is how HR professionals can use blockchain:
- Verify and assess education, skills and performance details of the candidate could be the first potential usage of the blockchain.
One of the major pain points of the recruitment process is verifying education, job responsibilities, and skills. It is the most problematic and resource-consuming process. Getting education and other details verified could be time-consuming as it heavily depends on third-party agencies.
With blockchain, you can easily bypass all these hurdles by creating separate transactions for all such events as and when they happen.
- Manage documents more effectively.
Documenting the employment history is yet another hurdle. It is very tough to maintain and manage the documents of the candidate’s previous employment. Also, there are various problems with validating the historical data of the recruit while hiring them.
By creating blockchains for this purpose, you can build a complete record of the historical data. And it could be proof for the employees in case they wish to show their employment record.
- Reduce the overall cost and boost payment transactions.
When we talk about the expat package of an employee, it costs more than double the salary of the newly-hired employee. In case employees are moving to a higher-paying country on a temporary basis, the cost is quite high.
Bitcoin has changed the definition of making payments across different geographic locations by eliminating the middleman. If we can think about developing a similar feature for the HR process as well, it will greatly reduce the salary conversion costs. Also, it will act as a bridge between employee and employer to access their salary on the go without waiting for it to be transferred.
- Handle legal and privacy issues more effectively.
What if someone asks the employee about their current salary or age? Well, it could be a point of concern in certain places where it is not legal to extract such information. However, with blockchain, you can easily store such confidential details and can access them without needing the employee’s consent as and when required.
- Boost productivity, prevent fraud and cybersecurity in HR.
Finishing work within a defined time-frame, meeting goals, salary payouts, bonuses and tons of other manual work reduces the overall productivity of the HR professionals. But with the help of blockchain, all such processes can be automated, which in turn reduces the burden of managing routine.
Moreover, blockchain also improves fraud prevention and cybersecurity in HR for both the employees and the employers.
There are, maybe, other potential uses of blockchain within the HR department beyond conventional recruitment and payroll process. It could help the recruiter manage the health records of the employees, maintain learning records or other information with utmost security, and even let the employer validate the skill sets and capabilities of the resources.
Of course, there are certain challenges to utilizing blockchain optimally, but considering using blockchain is not at all a BAD OPTION!!!
What’s your take on this? Do you think we can explore blockchain’s use in HR? Share your views in the comment section below.