JAX Finance Blog

JAX Finance, 9-12 April 2018
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What Makes Blockchain Appealing To HR Professionals?

Can blockchain be used for HR purposes? Unsplash

Finding and recruiting the right candidate is not a cake walk, in fact, recruitment is a tedious job! However, it is a rock-solid backbone of a corporate world, which includes all business verticals. It takes a lot of efforts to hire right candidate suited for the job, and it is a pain point for the HR team and employers globally.

The existing hiring process has a lot of issues with it, and all it is happening since decades. Today, we’re talking about mobility and even discussing how employers and job seekers can leverage from the advancement in online services to overcome the issues. But, the issues still persist and that’s a harsh reality.

What is wrong with the current hiring process???       

Lack of trust between employee and employer is one of the first concerns. Both the parties are forced to show faith on 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 is having flaws in it. It is possible that a candidate may lie about their educational qualification, work experience and produce fake references? In this case, there is no way out you can catch the truth behind the lie.

Aside to this, what about the overall cost and time spent on the lengthy exercise of hiring 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 leverage from the emerging technology like “Blockchain” to streamline the hiring process.

Hold on!!! How blockchain comes into the picture when we’re talking about recruitment and hiring process?

Well, it does have a deep co-relation with the HR process. And it could be a sure-shot solution to overcome the backlogs of existing method and improve the hiring process. Let’s see how it does. The Blockchain is a newly emerging technology that is changing the way businesses are operating and bringing efficiency to the organization.

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 this emerging technology can bring to the HR business process?

Alright, but what makes Blockchain more suitable and appealing to the HR professionals?

Of course, there are some noticeable issues or concerns, mainly with payment and capital markets, expressed from the industry experts for the usage of Blockchain. But if we take a look at the other side, it is having a bag full of goodies for the HR. Instead of focusing on the downside, if we look at the benefits blockchain brings, it is possible to identify and address the pain points and backlogs of existing HR process.

Possible usage and goodies Blockchain can deliver for HR Professionals:

  • Verifying and assessing education, skills and performance details of the candidate could be the first potential usage of Blockchain!

One of the major pain points of the recruitment process is to verify education, job responsibilities and skills. It is the most problematic and cost consuming process. Getting education and other details verified could be time taking as it is dependent on the 3rd 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 reducing the productivity.

It is very tough to maintain and manage the documents of the employment of the candidate. Also, there are various problems with validating the historical data of the recruit while hiring them. Creating blockchains for the employment purpose can help you build a complete record of the historical data. And it could be a kind of proof for the employees in case they wish to show their employment record.

  • Reduces the overall cost and boosts payment transactions.

When we talk about the expat package of an employee, it costs more than double of the salary of the 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 payment across different geographic locations by eliminating the middleman to process the transaction. 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 at a certain place where it is not legal to extract such information. However, with blockchain, you can easily store such confidential details and can access those details without taking consent of the employee as and when required.

  • Boost up productivity, fraud prevention and cybersecurity in HR

Finishing work within a time-frame defined, meet up goals, salary payouts, bonus 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 contractors too.

There are, maybe, other potential uses of blockchain within HR process 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 utilize blockchain optimally, but giving a thought to use blockchain is not at all a BAD OPTION!!! What’s your take on this? Do you think we can explore more about blockchain and its profound use in HR domain? Share your views in the comment section below.

 

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Wednesday, April 11 2018
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