Technology has changed the way HR leaders handle all sensitive data. Blockchain is best known as the infrastructure behind bitcoin and other cryptocurrencies that makes financial transactions safe without a bank or another middleman.
“Blockchain technology has such a wide range of transformational use cases, from recreating the plumbing of Wall Street to creating financial sovereignty in the farthest regions of the world.”
Blockchain has the power to revolutionize the ways which Human Resource pros approach many of their daily tasks. It encrypts networks where individuals and companies can share information securely, enabling recruiters to verify employee data, including educational and career achievements. Below are 5 ways in which blockchain can impact HR.
Protects HR from Cyber Criminals
Human Resource Management is involved in dealing with a lot of sensitive personal and financial data. The department receives and stores information relating to pay, health insurance, finance and banking, disciplinary records are at risk of being exploited. But with blockchain records are decentralized, reducing the ability of the criminals to gain access to the data.
The Recruiting and Hiring Process will be Transformed
Standard methods of seeking out candidates, determining they are worth pursuing or not, conducting a pre-hire verification process can be taking too long. Potential hires may tweak or fabricate references, so hiring managers to wait days to have detailed information on past employees due to liability purposes. Blockchain can help out of the process, which means that employers and applicants can get answers they need quickly. Employee records can be stored on the blockchain database which includes employment history, letters of recommendation, educational records and more.
Smart Contracts will Facilitate Payments
An organization that adopts blockchain can automate the process and enable workers to be paid instantly through the use of smart contracts. With a smart contract, this will make companies more attractive to remote workers.
Blockchain can Improve the Accuracy of Time and Attendance Data
Blockchain helps to ensure records and pieces of information are collected through time and attendance systems that can’t be tampered with. This improves HR Departments to use technologies to improve the veracity of their payroll and time tracking systems.
Companies can use Blockchain to help pay workers in Cryptocurrency
Crypto-based payroll system is backed by blockchain technology, it can attract more applicants on a global site. Employees want to access their money, move it and use it to buy goods and services with ease.
Human resource industry has evolved over the years, moving from traditional paper-based application and processing system to the digital/email-based systems, before later moving to the cloud via professional networking platforms.
“Blockchain technology isn’t just a more efficient way to settle securities. It will fundamentally change market structures, and maybe even the architecture of the Internet itself.”
Blockchain technology has veritably become the final word in ensuring secure, efficient and smooth operations of an enterprise. Such as Human resources, the custodian of the most valuable asset an organization possesses – its People. Blockchain features can incorporate our digital work platforms that can improve the situation, for instance.
- The ability to exchange digital assets without the need for a 3rd party.
- The ability to execute smart contracts in the employment space.
- A distributed ledger to store digital records.
- An indelible record of all previous transactions.
Blockchain is best known as the backbone technology and it is a type of decentralized database that allows everyone in a “chain” to see and verify the details of every record. Blockchain will have widespread adoption and will have an enormous impact on the way that businesses share information.