3 Ways Blockchain Revolutionizes Employee Recruitment and HR
Finding and recruiting candidates is not a piece of cake. The long resume verification process and the cost is not trivial. Recruitment has been a tedious job for decades. However, technology now changes the way many businesses work, not least in terms of recruitment. Blockchain has the potential to be a solution to those classical problems.
A blockchain is a large, distributed digital ledger which was originally created as bitcoin backbone. In bitcoin transactions, the existence of blockchain eliminates the need for ‘trusted third parties’ (the banks) to check and validate the authenticity of each transaction. Each transaction will be encrypted and stored as a ‘block’ throughout an immunized, decentralized computer network.
Essentially, decentralized databases and internal system power in managing stored information make blockchain so appealing to many industries and businesses worldwide, including in HR and recruitment. Then how can HR and recruitment utilize blockchain? There are three main areas among the many areas of recruitment and HR that will be revolutionized by blockchain.
1. Background check
One problematic issue that is costly and time-consuming in recruitment is the process of verifying education, skills, and work experience or background checking. This process is highly dependent on human resources. With blockchain, it is possible for all candidate’s track records (including those relating to identity proof, academic certification, and degree, employment history, previous salary cuts, visa status, etc.) to be pre-validated and stored in a secure platform. Candidates can manage their profiles throughout their career and provide access to the employer when needed. With blockchain, data is immutable and stored securely and the company does not need to waste much time verifying all candidate information.
2. Manage documents
Documenting the employment history is another challenge. It is very difficult to maintain and manage candidate documents from previous recruitment. Validating historic recruitment data is also a problem. With blockchain, companies can build a complete record of historical data that can be proof for employees in case they want to show their employment record.
3. Prevent fraud
HR can also utilize blockchain to record and map the skills and abilities of employees in the company. Perhaps many companies have made this record through performance appraisals. However, using blockchain data can be business information. For example, determining the right employee for internal promotion, how many employees need to be recruited, and who is an employee who has the right competencies for a project.