Blockchain technology has long been touted as the next big thing in the world of finance. But did you know that it also has the potential to massively transform human resources departments around the world?
The following five changes are just a few of the improvements that blockchain can make to the world of human resources:
The hiring process is not only slow but fraught with potential for fraud by candidates who exaggerate experience and references who don’t tell the truth. But if academic credentials and employment records were stored on a blockchain, recruiters would no longer have to wait days for callbacks or conduct costly follow-up investigations.
Rather than submit a resume, each applicant could provide a key that unlocks their credentials, employment history, or letters of recommendation. And because the information is stored on a decentralized blockchain, it’s sure to be unadulterated.
These days, many companies have employees in different countries. By switching to blockchain-based cryptocurrency, HR could pay these people more or less instantly and at a lower cost than traditional cross-border payment schemes. Cryptocurrency also eliminates the impact of fluctuating exchange rates, which can be maddening for workers in unstable jurisdictions.
Rather than make freelancers wait while you manually verify their work, expectations could be coded into smart contracts that distribute workers’ money as soon as they satisfy your criteria. This doesn’t just benefit the gig worker. It also insulates the company from fake or inflated invoices.
More Accurate Employee Data
Blockchain ensures that once a record is added to the chain or ledger, it stays there forever and in its original form. This makes blockchain well-suited for time and attendance, payroll, and personnel data that an outsider (or employee) might want to alter.
Better Data Security
HR manages a lot of sensitive information which it usually stores in the cloud or on company servers. Unfortunately, both are susceptible to hack. The company that embraces blockchain is safer. To change a single character in a personnel file, a hacker would have to commandeer the entire decentralized network.
There is absolutely no reason why blockchain technology should be confined to the world of finance. As outlined in this article, it can also create a great deal of change in HR departments across the globe.