Blockchain technology has experienced fluctuating status over the years, which could explain why, until recently, it has remained on the outskirts of the HR lexicon. However, as the world continues to evolve, HR
professionals must adapt to new technologies to modernize processes and systems. One such technology with immense potential for HR is blockchain, a decentralized ledger that provides a secure and tamper-proof way of storing data. In this article, we’ll explore the potential applications of blockchain for the future of work, particularly in recruitment.
Benefits of Blockchain Technology in HR
With blockchain technology, security is a top priority. Every block in the chain contains unique data that is cryptographically secured, making it almost impossible to hack or alter the data stored on it. This makes blockchain technology an ideal solution for storing sensitive HR data, such as candidate CVs, payroll information, and employee records.
Storing candidate CVs on the blockchain can eliminate the need for costly background checks, which can be time-consuming and resource-intensive. This can ultimately lead to significant cost savings for companies and recruitment agencies, making the hiring process more efficient and cost-effective.
Increased Accuracy and Completeness of Candidate Information:
Blockchain technology provides a tamper-proof record of all candidate information, including education, work experience, and other credentials. This can help HR professionals make more informed hiring decisions, as they can be more confident in the accuracy of the information provided by job candidates.
Addressing Issues of Discrimination and Bias:
Storing candidate information on the blockchain can help address issues of discrimination and bias in the hiring process. HR teams can ensure that all candidates are evaluated based on their qualifications and experience, rather than on factors such as race, gender, or age.
Improving Employee Retention:
The use of blockchain technology in the HR industry could also help address issues of employee turnover and retention. By providing employees with a tamper-proof record of their employment history and achievements, HR teams can help increase employee satisfaction and engagement, leading to improved retention rates and reduced turnover.
Examples of Blockchain-Based HR Solutions:
Although there is currently no single blockchain technology specifically designed for HR, various blockchain-based HR solutions are being developed, with large players like Accenture leading the early adopters. Here are a few examples of blockchain-based HR solutions currently in development:
ChronoBank: This platform aims to create a decentralized database of time-based work contracts using blockchain technology.
Bitwage: This platform allows employees to receive their wages in Bitcoin and other cryptocurrencies, making international payments faster and more affordable.
Benefits: This platform aims to simplify HR processes by integrating payroll, benefits, and compliance all in one place.
HKHR Recruitment’s Take on Blockchain Technology in Recruitment:
As a technologically advanced recruitment company, HKHR Recruitment sees immense potential in the use of blockchain technology in the HR industry. The frustrations experienced by both candidates and clients when it comes to CVs, for example, can be addressed by storing candidate CVs on a dedicated blockchain. This has the potential to add exponential benefits to any in-house talent team as well as their candidate community.
Whilst the use of blockchain technology in the HR industry is still in its early stages, many players in the industry are working on it, and the potential benefits appear substantial. From cost savings and increased accuracy to improved efficiency and transparency, blockchain technology has the potential to transform the way HR professionals approach human capital management. As technology continues to evolve and mature, it will be interesting to see how it is applied in the HR industry and the impact it has on the future of work.
Looking for a Recruitment partner who is bringing the future forward? Contact us today to partner with HKHR Recruitment, the most progressive recruiter in the world. Reach out to Sarah at Sarah@HKHR.asia to start the conversation.