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HR revolution with the blockchain

HR revolution with the blockchain

Articles / 2019-03-20 17:10 PM

The personnel management function has been developing in the rhythm of modern society and innovative technologies play a really big role in it. Just yesterday we started talking about automation and digitalization and today we’ve got a new concept on everyone’s lips – the blockchain.

The blockchain is a decentralized technology that allows storing and exchanging data in an absolutely transparent and secure way. Thanks to the blockchain technology virtual data exchange is conducted without mediators. Together with this, all the participants to the network can verify the credibility of the data. It is a ledger that stores all the transactions. The system appeared in 2008 and got its popularity thanks to the cryptocurrencies.

The primary aim of the blockchain is to create trust between the participants as each data exchange is transparent and is recorded without identification of the participant.

Taking into consideration this very fact, search and recruitment of personnel are the most obvious ways to apply the technology. Because with the help of this innovative tech an employer can check the reliability of the candidate’s profile. The employer can also study the competencies and the experience of the candidate, i.e. everything to save time and learn what he or she needs to know about a potential employee. That is why it is in the interests of the recruiter to implement the blockchain tech and maximize his or her chances to find a perfect employer!

Let us consider different aspects of HR where the blockchain can be successfully applied.

Social media

Linkedin is a good example of how the centralized network stores your data. Soon, we will be able to see the decentralized social media that will let you control your data. It will also let you monetize your opinion through micropayments – for each comment, published content or another action made. Steem is from another sphere but still is a good example.

Background and authenticity verification

The process of background verification takes much time, money and efforts. In the future, all personal information of a candidate including previous addresses, employers, information on the salary, social security number, visa status and other will be preliminary confirmed and then stored in the protected blockchain application. After verification, the organization can get free access to the information as the candidate him/herself possesses the data and can provide it. It is also the simple automation – there will be no need in experts that will have to verify the whole CV. There are more than 20 companies that are now developing the blockchain in this very direction.

CV Verification and Accessibility

Employers have to pay job boards to get access to the CVs stored in their databases but the candidates that really own the CVs cannot control who actually sees their information, who uses it, if it can accidentally get to the current employer and at the same time candidates have to pay as well. The blockchain tech can provide decentralized CV bases that will be controlled by the candidates themselves.

Imagine the world where the employer pays to the candidates to have a right to upload their CV or to connect them instead of paying job boards or Linkedin.

Hiring

The hiring of a new employee actually presupposes various office manipulations. It is a mess of mile-long email patterns, checklists, and software. Fortunately, most of the manipulations can be optimized and automated with the help of smart contracts.

The Blockchain Tech can dramatically change the way we manage personnel and HR. As a result, we will live and work in the world with absolutely new economic models based on transparency and security.