Is Blockchain Technology The Future Of Staffing And Recruiting?
There are areas that need to be addressed from a legislative front before Blockchain can be a reality
Posted on 06-19-2019, Read Time: Min
Share:
According to a 2017 report, the average time-to-hire a new employee was 36 days. While just over a month may not seem like an excessive amount of time to pare down a hundred-plus resumes to one deserving new hire, when we’re in an economy with a 3.6% unemployment rate, candidates are a hot commodity!
With this in mind, business should be digging into their hiring practices to find efficiencies. Many quickly realize they can significantly streamline this process with the help of technology. While artificial intelligence is typically the first piece of tech that comes to mind, there is another technology out there that has the potential to make a tremendous impact: blockchain technology.
For those who are unfamiliar, blockchain is a secure ledger of information. It’s a growing list of encrypted records, called blocks, which are linked using cryptography. Each block is defined by a timestamp and transaction data, thus a blockchain is resistant to modification. Its decentralized network of computers verifies and automates the confirmation and flow of information. While blockchain technology has gotten the most notoriety as the underpinning of digital currency like bitcoin, there is a huge opportunity to leverage this application in human resources and human capital.
In terms of HR, blockchain technology would serve to build a permanent record of employment, a complete picture of background information and resume items that no one can edit or change. It can help companies make better decisions in hiring and promotions and save time and energy in the employee life-cycle. This “workforce identification” or “workchain” as I like to call it, would take a lot of pain points out of the recruiting and hiring process and could even lead to the automation of it in some aspects.
Convenience- All workforce-related information on an individual would be in one place, including certifications, educational records and letters of recommendation among much more. HR professionals would no longer have to call an applicant’s references or ask individuals why they left their previous positions because information of that nature would be easily accessible in the candidate’s public blockchain.
Blockchain technology also enables smart contracts, which can facilitate payments to gig workers. Oftentimes, gig and contract workers wait weeks as their invoices undergo a manual verification process. This process can be automated with blockchain and will allow these workers to be paid instantly when their work is finished through smart contracts. Cost-effective- On top of offering convenience and efficiency, blockchain technology would save human resources on costs. There would be no need to pay a third party to run a background check on a candidate or for a credential specialist to verify that someone has all the proper certifications for a role, (e.g. hospital employees).
With a “workchain,” companies also wouldn’t need as many recruiters to narrow down pools of applicants, saving on labor costs. Trustworthy- By nature, blockchains are trustworthy because they are unalterable so the use of this technology in HR would effectively eliminate falsification of information. There’d be no more fraudulent references or fake salaries, improving a recruiter’s chances of hiring better talent and someone who will last longer in the desired role.
Workchain information would also be decentralized so sensitive personal and financial data is less at risk to be modified by cyber-criminals. In many cases, that risk is virtually eliminated. Case in point, the workforce identification has revolutionary potential to disrupt the HR industry. LinkedIn is probably the closest to nailing down this concept, with its robust database of work-related information on its users, however it may be some time before innovators actually make it a reality.
While the idea of a workchain has tremendous positive implications, there are areas that need to be addressed from a legislative front here in the US before this could become a reality. Hopefully we will see lawmakers move to adjust legislation to support this cutting edge technology and provide US companies with the ability to operate more efficiently and effectively!
With this in mind, business should be digging into their hiring practices to find efficiencies. Many quickly realize they can significantly streamline this process with the help of technology. While artificial intelligence is typically the first piece of tech that comes to mind, there is another technology out there that has the potential to make a tremendous impact: blockchain technology.
For those who are unfamiliar, blockchain is a secure ledger of information. It’s a growing list of encrypted records, called blocks, which are linked using cryptography. Each block is defined by a timestamp and transaction data, thus a blockchain is resistant to modification. Its decentralized network of computers verifies and automates the confirmation and flow of information. While blockchain technology has gotten the most notoriety as the underpinning of digital currency like bitcoin, there is a huge opportunity to leverage this application in human resources and human capital.
In terms of HR, blockchain technology would serve to build a permanent record of employment, a complete picture of background information and resume items that no one can edit or change. It can help companies make better decisions in hiring and promotions and save time and energy in the employee life-cycle. This “workforce identification” or “workchain” as I like to call it, would take a lot of pain points out of the recruiting and hiring process and could even lead to the automation of it in some aspects.
Convenience- All workforce-related information on an individual would be in one place, including certifications, educational records and letters of recommendation among much more. HR professionals would no longer have to call an applicant’s references or ask individuals why they left their previous positions because information of that nature would be easily accessible in the candidate’s public blockchain.
Blockchain technology also enables smart contracts, which can facilitate payments to gig workers. Oftentimes, gig and contract workers wait weeks as their invoices undergo a manual verification process. This process can be automated with blockchain and will allow these workers to be paid instantly when their work is finished through smart contracts. Cost-effective- On top of offering convenience and efficiency, blockchain technology would save human resources on costs. There would be no need to pay a third party to run a background check on a candidate or for a credential specialist to verify that someone has all the proper certifications for a role, (e.g. hospital employees).
With a “workchain,” companies also wouldn’t need as many recruiters to narrow down pools of applicants, saving on labor costs. Trustworthy- By nature, blockchains are trustworthy because they are unalterable so the use of this technology in HR would effectively eliminate falsification of information. There’d be no more fraudulent references or fake salaries, improving a recruiter’s chances of hiring better talent and someone who will last longer in the desired role.
Workchain information would also be decentralized so sensitive personal and financial data is less at risk to be modified by cyber-criminals. In many cases, that risk is virtually eliminated. Case in point, the workforce identification has revolutionary potential to disrupt the HR industry. LinkedIn is probably the closest to nailing down this concept, with its robust database of work-related information on its users, however it may be some time before innovators actually make it a reality.
While the idea of a workchain has tremendous positive implications, there are areas that need to be addressed from a legislative front here in the US before this could become a reality. Hopefully we will see lawmakers move to adjust legislation to support this cutting edge technology and provide US companies with the ability to operate more efficiently and effectively!
Author Bio
| Jason Leverant is President and COO of AtWork Group. Connect Jason Leverant Visit www.atwork.com |
Error: No such template "/CustomCode/topleader/category"!
