The potential of blockchain is already being explored for enterprise applications. Further, the impact of blockchain to revolutionize the business sector is manifesting in Human Resources (HR). In this article, we’ve brought you the possible influences that blockchain can have on HR as well as the organizations that are already experimenting with it.
The Shift in HR with Blockchain Technology
Blockchain adds value to all the processes which are labor-intensive, cumbersome, require a certain degree of trust to operate, and can be automated. With these concerns for HR, the technology has the capability to disrupt operations- both for organizations and employees.
Let’s take a peek at the possible usages of blockchain for HR:
- Storing the educational credentials and employment history of individuals on the blockchain. Each part of the data is verified by the authorized organizations, thus easing the process of recruiting the most eligible employees.
- Automating various cumbersome processes of HR such as payroll payments, VAT administrations, and attendance by introducing smart contracts. These contracts can automatedly release payments each month by calculating parameters such as project completions, deadlines, attendance, etc.
- The blockchain can give an entirely new dimension to the emerging ‘Gig economy’, gaining popularity among the younger generations. Releasing instant pay to the contract worker further enhances such emerging business models.
21st Century Advancements
In the 21st century, where businesses are not bound by geographical locations and remote work is becoming increasingly common. Moreover, this entails additional specifics such as cross border payments, differing taxes according to jurisdictions, and also a mutual trust between the organization and the remote employee. With the help of blockchain, it becomes possible to navigate such concerns. Instant cross border transfers, low fees, and regulatory compliance can be easily managed.
With this technology, it becomes relatively easier to employ skills and talent according to the job needed at hand. While providing complete verification for the information of workers, it thus provides a tool to recruit based on skills rather than references and wrong credentials. Further, this also helps in increasing the productivity levels of a firm
The data available for employees as well as organizations are vulnerable to cyber threats. Blockchain enhances cybersecurity and fraud prevention benefiting the company and its employees.
Current projects in the Blockchain-HR sector
Early adopters of blockchain in the HR department have already started rolling out different projects. One such startup, Bitwage, is using blockchain to streamline cross border payments specifically for recruiters and employees. Another startup Etch focuses on reducing the payout time to zero.
Additionally, startups focusing on freelancing gigs are also quickly evolving. One such startup Dream uses machine learning algorithms to allocate top-notch freelancers to the specific blockchain project.
Furthermore, there are projects working on improving transparency in recruit’s credentials and work history. London based Aspire, built on a blockchain platform, provides an assessment of employees, background checks and training.
Blockchain has the groud breaking capacity of improving trust and adding value to enterprise focused solutions such as HR. Emerging startups have already laid out a strong foundation. One thing is for sure: Blockchain is here to stay!