Experts predict that the value of the blockchain technology will be as high as $3.1 trillion by 2030. They base this forecast mostly on how it is transforming the way businesses, individuals, and institutions transact and interact online. While most of the current focus may be on the financial applications of the blockchain, the technology is also set to revolutionise a wide range of industries. One of these is the HR and recruitment sector.
How Blockchain Can Transform the HR Industry
The world of HR and recruitment is still plagued with obsolete tools, such as paper records, outdated software, and unreliable ways of handling confidential information. The blockchain offers a simple yet advanced solution for these problems and more. Below are some of the blockchain benefits that can change HR for the better:
- Protection from Cyber Criminals
Human resource managers deal with a lot of sensitive financial and personal information. These include confidential data regarding identity, health insurance, disciplinary records, and salaries. In the wrong hands, these can be exploited, placing both the individuals and the company involved at risk.
Blockchain technology companies can help HR departments store data on the chain. Since blockchain is decentralised and incorruptible, the opportunity to hack and steal the data is virtually eliminated. Additional security measures can also be implemented, such as requiring authorisation and verification before anyone can access the ledger.
- More Efficient Recruitment Process
Present methods of searching for, vetting, and hiring candidates are often slow and inaccurate. In worst cases, they may allow fraudulent practices as well, enabling applicants to fabricate their references and qualifications.
The blockchain can completely remove the potential for fraud and the consequences of human error. It can store an individual’s employment records and grant permission to employers to access the data. The benefits go both ways. The applicants are assured that their data is kept private and safe, while employers can trust that the information is accurate and up-to-date.
- Enhanced Accuracy of Attendance and Time Keeping Data
Blockchain technology can make it impossible to fake time and attendance records for all employees. Instead of relying on manual entry which can be tampered with or biometrics which can fail or glitch, the blockchain will automatically store permanent time tracking data in real time.
- Simpler Payment Process for Gig Workers
In companies that work with independent contractors, the HR department has to facilitate their payroll as well. More often than not, gig workers have to wait and go through a complicated process before they can get paid. Unfortunately, companies can lose talented freelancers if they fail to promptly and correctly facilitate payments.
HR and payroll managers can resolve this problem by creating blockchain-based smart contracts between the company and independent contractors. Once the terms of the contract are satisfied, payment will automatically get credited to the contractor’s account.
This can make companies more attractive to freelancers. It also reduces the risk of fraudulent invoicing and other payroll concerns for remote workers.
Blockchain Technology: Transforming the World’s Industries
HR may not be at the forefront of cryptocurrency news when it comes to blockchain applications, but there is no doubt that the technology will usher profound changes to this niche. This is just the beginning.
Momentous events are always happening in the blockchain space, such as Bitcoin’s upcoming halving and the adoption of blockchain technology by governments, big businesses, and more. If you are thinking of investing in this incredible technology, there is no better time than now to get started.