The advent of bitcoin and cryptocurrencies changed the way we look at financial transactions. Being able to carry out digital transactions without a middleman or bank and use technology to handle sensitive data gave us the power to explore so many more applications of the blockchain. One of these applications is in human resources. It is unusual but blockchain can revolutionize many functions of HR.
For instance, generally, when an employee is signing up for health coverage offered by the employer, he or she has to share medical history with the employer – even when they don’t want to. However, with blockchain in the picture, the employee won’t have to do it. The loss and misuse of data are reduced greatly.
What Is Blockchain?
The blockchain is a ledger with a peer-to-peer network that stores data in blocks along with digital history. The data stored in these blocks can’t be modified, which is why blockchain is an append-only technology. It can only add new information and all the previous transactions can’t be modified, erased, or changed.
How Blockchain Can Help Human Resources
1. Talent Acquisition
When it is about talent acquisition, blockchain is beneficial for both HRs and employees. From the ability to store and control data access to sharing records of education, previous employment, training, everything can be controlled. The candidate can share details with relevant employers and employers can correctly match skills with the candidate’s qualification more accurately.
While big organizations still manage to handle talent acquisition and hiring, small and medium enterprises struggle a lot. If some technology can streamline this process, it can also enhance the productivity of the workplace.
2. Productivity Gains
After talent hiring is streamlined, HR managers can additionally utilize blockchain for payroll, tax compliance, and reducing other admin tasks. If these tasks are effectively managed on time, SMEs will be able to focus on other essential business processes. They can make better client relations and serve their customer in a better way.
3. Easy Payments and Mobility
If blockchain is successfully implemented in organizations, it can lead to easy mobility and payment transfer. Blockchain will enable transferring of money cross-border without worrying about third-party integrations. However, for this to execute in reality, the cooperation of banks and financial institutions is required.
4. Prevention of Cyber-Crime
We are all aware of blockchain’s ability to reduce cybercrimes and fraud. This is the most effective application of blockchain which can reduce improper use of personal information and unidentified data-theft fraud.
There are various other benefits of blockchain in HR such as identity checks. One of the biggest hurdles in HR is to run a background check of an individual and check the educational qualifications. With blockchain to assist us, it would be simpler to verify records in minutes rather than days. Blockchain has the power to revolutionize HR activities, which will help HR managers to focus more on employee growth, collaboration, agile methods, and client relations.