Blockchain – Revolutionizing HR
Blockchain (cryptocurrency like bitcoin, etc.) has been one of the most talked about technological advancements in recent years. Discussions range from investments in different types of digital currency to how it will affect human resources and modern employment processes. Quite a few global tech savvy companies have reported completely revamping their systems to accommodate the growing blockchain technology. With new technology comes challenges; understanding and implementing new processes can be a challenge, especially with something as new as blockchain.
Blockchain is essentially a decentralized database where exchanges can be made (of data, money, information, etc.) without the involvement of a third party (like a bank or a recruiter). Every transaction is approved by participating parties and then shared, recorded, and permanently stored. Once the transaction takes place, information or data cannot be deleted or changed. The transparency of blockchain technology is one of its biggest draws. It makes it simple to find information, make payments, and record taxes and other information. In addition, it allows individuals and organizations to make secure exchanges (i.e. pay employees) without going through a bank, thereby avoiding associated fees and currency changes.
In addition to streamlining the recording of financial information and other office tasks, the popularization of Blockchain could bring about two big changes for human resource professionals: how we pay our employees and how we recruit. While many companies are still processing payroll and finding potential candidates through traditional means, some have moved away from these processes. It is projected that in the next ten years most companies will move to using Blockchain.
Several companies have begun to utilize Blockchain to pay their employees. It is particularly helpful for large organizations with employees around the world. Traditionally, an employer transfers money from their bank to the employee’s bank account, potentially paying fees and losing money in the conversion to another form of currency. With Blockchain the employer can pay their employee in cryptocurrency, like bitcoin, cutting out the middle man (the bank) and avoiding currency conversion altogether. This new technology has allowed employers to streamline their payroll, avoiding unnecessary charges, and saving organizations money.
While streamlining payroll is an attractive aspect of Blockchain, it is not the only process that would radically change with the implementation of this technology. Some argue that the use of Blockchain will make things like resumes and LinkedIn obsolete. Instead of writing a resume, individuals would store and publicly share their work history, and the organizations they worked for will have the opportunity to provide additional information. This could potentially eliminate the need for employment verification and allow HR professionals to see work history as well as performance indicators from the candidates’ previous employers.
Another attractive aspect of Blockchain technology in the hiring process is the inability to change information or provide inaccurate information. Because the basic information (candidate A was employed at X company) would be unalterable, there would be less of a chance for misunderstanding or deception in the recruiting process. Potential employees, or third-party recruiters, would be unable to provide inaccurate information about work history and/or skills.
Implementation of Blockchain will allow a new level of transparency and efficiency that could revolutionize human resources. It would allow HR professionals to act quickly and accurately in recruitment, payroll, and other financial practices. While this technology is in its infancy and still feels entirely foreign to many of us, it is rapidly growing and with its ability to streamline essential HR functions, it is worth looking into.Tags: Bitcoin, blockchain, payroll, recruiting