HR professionals may be the ones most impacted by blockchain technology due to their responsibility for processing requests and approvals, which are some of the first steps in any business transaction. Conversion of HR data to be viewed by external clients onto blockchain platforms is unlikely to be any easier than the conversion of internal data in HR departments. The issue here is not the number or complexity of rules or processes involved but how that information might change over time. Organizations constantly update and evolve their policies and procedures. Integrating blockchain into HR systems is a daunting task, but there are already some early successes.
HR is often thought of as a monolithic function within an organization, but in reality, it is a decentralized organization with several business units, including payroll and benefits. Additionally, HR is responsible for both the actual management of employees, such as recruitment and onboarding, and other critical processes unrelated to employee management, such as reporting and payroll. HR has made great strides in recent years by implementing cloud applications for efficiency and collaboration. HR professionals should take a closer look at how they can integrate HR practices with bitcoin trading platforms. Bitcoin Motion helps them do so easily and effectively. Here are the eight ways blockchain will Impact the HR Function:
- Recruitment:
Blockchain will significantly impact the recruitment process in HR and Talent Acquisition. Blockchain will completely revolutionize the hiring process by providing an immutable ledger, where past behavior and performance can be evaluated and tracked over time. This transparency will allow for a more meritocratic environment, where skills can be assessed based on talent, not connections. An employer can see if a candidate has improved or developed new skills in their former jobs or educational institutions or if there is any evidence of unethical behavior that may have brought their previous positions to an end.
- Verification:
There will be a direct impact on Verification processes. The verification of qualifications, credentials, and experience will be significantly simplified with blockchain because it provides an immutable record that cannot be falsified.
- Referencing:
Employers will be able to verify references with a simple scan of the blockchain. Cryptocurrencies are already being used to pay for and confirm references. Employers will be able to check if the reference has been paid and if an individual has provided incorrect or misleading information about their qualifications, skills, and accomplishments. In the future, blockchain will be used to confirm references with a simple scan of the blockchain. Additionally, candidates will be able to provide references that are accessible by their future employer.
- Smart Contracts:
Smart contracts will eliminate the need for intermediaries. Instead of an employer having to rely on an external source who may not be entirely trustworthy or who may not have accurate and up-to-date information about the candidate or their qualifications and skills, smart contracts will allow for a direct transaction between employer and candidate. Candidates can receive an offer from their future employer without the need for an intermediary to make sure the offer is legitimate. This will allow for candidates to be able to complete background checks on their own, thereby minimizing time wasted in the verification process.
- Employee Life-Cycle:
Blockchain will allow for the creation of a single digital identity that can be used to share skill sets, certifications, and achievements with future employers when switching jobs. This will prevent any duplication of effort in employee onboarding and training. Blockchain will offer a secure and efficient solution for both employees and employers. Employees won’t have to worry about losing access to their certificates or assessments if they switch companies, as everything will be stored on the blockchain. An employee’s entire professional history will be easily accessible through their public key.
- Secure ‘Transactions’:
Blockchain offers a secure, decentralized, and cryptographically safe method of interacting with third parties and storing information. The technology enables the management of transactions across multiple locations in a secure manner. It also allows for the storage of confidential information in a way that can only be accessed by authorized individuals.
- Attendance:
As blockchain will provide a secure and decentralized method of storing attendance records and tracking time spent at the office, companies can ensure that employees aren’t abusing their paid time off. Blockchain will also be helpful in situations where attendance is taken via clocking in from a smartphone device. As employees would need to be present to have their phone scanned upon entering a building, blockchain could optionally record their location and check if it corresponds with the location of the organization, thereby creating an immutable record of all locations visited by an employee within a particular period.
- Compliance & Auditing:
Blockchain will improve compliance with HR policies, as it can be used to track and record changes to employee information such as pay rates, benefits, and job titles. It will also enable audit trails of key personnel actions such as terminations and changes in access rights. The immutable nature of blockchain will allow organizations to conduct an audit at any time by scanning the blockchain for any discrepancies. This is obviously not something that you could do with a paper-based record system.
Conclusion:
Blockchain has the capacity to completely disrupt the HR function. While there are obvious benefits for employees, employers will also earn from implementing blockchain technology. Blockchain technology can be used to protect an employer from identity theft and fraud. Additionally, blockchain will be useful in verifying references, which will eliminate the costly and time-consuming involvement of Third-Party Service Providers in the hiring process. Smart Contracts will completely eliminate the need for intermediaries by allowing for a direct transaction between employer and candidate.
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