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Blockchain Technology Breaks Into the Labor Market

Blockchain Technology Breaks Into the Labor Market

Articles / 2019-03-06 18:17 PM

Many experts say the blockchain technology sooner or later will change our world. If from the very beginning it was designed to support the cryptocurrency, nowadays it is applied in many other spheres going far beyond financial transactions.

Banks are trying to understand how they can apply the tech in making payments and accounting records; the world’s largest container shipping corporation ‘Maersk’ has already tested the blockchain in tracking shipments; heavyweight ‘Walmart’ uses blockchain to monitor supply chains; even layers are trying to catch up with the technological progress and have already started working with smart contracts. HR sphere is not going to stay out. Let’s look how the blockchain can impact that sphere of life we all in this or that way belong to.

Gig Economy Boom and the Blockchain Tech

Gig economy is a respectively new concept on the labor market. Actually, it presupposes such working environment where temporary employment is a daily staple and where employees take ad hoc offers. With the increase of the quantity of freelancers many companies lose a considerable amount of money. Numerous intermediaries existing in the forms of special agencies and employment offices, banks and payment platforms cause large financial losses in the process of payroll management.

Use of blockchain can help companies save their resources by means of eliminating the necessity of using the intermediary services. Payroll accounting would be carried automatically and the employees would get their salaries after the work is completed. A company and a contractor could make a direct agreement. The blockchain tech has colossal opportunities to suggest. It has all the potential to increase efficiency of work with freelancers who offer their skills all over the world.

Data Verification

Staff recruitment is the very area where the blockchain can make a great leap, especially if we are speaking about relations between employers and employees. There can be made a new ecosystem on the basis of the blockchain tech. It will be made as a new verification system. All the ‘stakeholders’ would win as a result. Companies would get more credible information about the applicants than that they can get from the recommendations. The employees would be able to prove their professional competences in the same place. They will let:

  • Applicants with good reputation faster get a job
  • Companies save their time and money
  • Easier estimate qualification of the applicants

The new verification system and the system of the performance indicators will open new opportunities for the staff recruitment as it meets all the necessary requirements:

  • Data transparency. Any participant at any time has access to the data to verify the data.
  • Data security. No one party can change the data.
  • Automated processes. The system works automatically without intermediaries to minimize human error.
  • Independence. The system does not belong to either party and is not administrated by either of them.

Every day we can see more and more institutes including schools, state bodies and companies working together with the aim to provide more security and transparency in the sphere of staff recruitment. It is possible with the help of the blockchain tech. Various institutes share information about the career of a certain applicant by means of placing it in the decentralized ledger.

In such a way, the more companies and applicant will entrust the public blockchain with their personal information the more useful the system will be for the HR industry as its representatives will see the real situation and as a result will take more right business decisions.

Moreover, the use of the blockchain in HR will help to solve some social problems. For example, such a problem as difference in wages occurring as a result of gender inequality.