Blockchain has brought a new dawn over the twenty-first century. It has completely changed how we perceived the internet and how businesses were functioning. With the advances in the distributed ledger technologies, nearly every industry is implementing the tools to make the most of the blockchain network.
The ripples of Blockchain hasn’t left the world of Human Resources untouched. The HR technology has had their fair share of the technological and operational shift in the past decade. For instance, the HR operations have shifted from offline processes to cloud services. This has created standardization among different departments and branches of the same body.
Further enhancements of the HR network over a blockchain network will be beneficial in creating a concrete, reliable and information-driven peer to peer network.
The blockchain technology can be defined as an open source, distributed database network where every transaction is stored, maintained, and accessed by the nodes of the network. So no matter what information, assets, or currency you want to transfer, you can proceed with the blockchain network.
So how will the network affect the HR sector?
Blockchain technology is set to make significant tides in the following aspects:
To identify proper work ethics and employee satisfaction, it is important to analyze the business operations at a given organization. This involves matching the competencies of employees with their working positions. A blockchain infrastructure is the best fit to implement employee contribution to the network.
Employee participation in a performance tracking system using a blockchain driven network will help to create a credible performance metric system. It will act as a critical tool to realize the benefits of the network.
Blockchain implementations have gained sufficient traction, thanks to the data concreteness and easy user accessibility. The technology can thereby be used to track a candidate’s or employee’s background information.
Though the conventional methods, it takes significant resources, both time and financial, to make a fact check against a given applicant. Many organizations avail third-party services to do the same. Using a blockchain network, the employer can simply track the performance of a candidate to check their eligibility for the given job profile.
In an event where the candidate doesn’t qualify for the given position, the company can further keep track of their qualifications for future opportunities. A blockchain network will act as a one-point solution to track career profiles and candidate accolades.
Blockchain technologies will induce significant usability regarding the payment sector. The blockchain already facilitates thousands of cryptocurrencies. These facilities can be further extended in everyday transactions. The main advantage is, blockchain is capable of maintaining high volume transactions thereby creating valuable scope business transactions and overseas trade.
Blockchain implements a reliable consensus system to create accountable transactions. This means your transactions are immune to any possible fraud or data breach. A distributed network will further enhance security by maintaining a public ledger where all the nodes of the network have a “block” storing the details of your transactions.
Automation of tasks
Theoretically, blockchain is applicable wherever you find a redundant, time-consuming, unwieldy task. Therefore the implementations are applicable in the following fields of business operations:
- Recruitment and Selection: The process will cover the recruitment requirements and overgo different rounds of applicant validation and verification. For instance, the portal can be helpful in identifying the engagement of an employee, a background analysis and how capable they are to fit into the job. Personalizing your job profiles over a blockchain network will help you to attract prospective employees for your organization.
- Employee Onboarding: Upon selection, most organizations have a process of background checking that requires hours of paperwork and labor resources. To verify the credential claimed by an onboarding applicant, blockchain will be beneficial in accepting, storing and checking the credentials. This information can directly be verified by contacting schools and colleges. Through Blockchain implementations, all this information will be available at a single click.
- Compensation Management: Compensation management is a significant area of HR management that takes up much resources and time. Using a blockchain network, globally deployed employees can be managed. In contrast, the conventional methods such as banks and third-party transfer services charge hefty commissions and take up a lot of time in paperwork. By creating a virtual corporate currency, organizations can save themselves from the hassles of these payment systems.
- Performance Management: Regardless of the size of an organization, it is essential to analyze the competencies of employees and reward them accordingly. If an organization fails to meet the expectations of a competent employee, they are prone to losing them to their competition, or worse, demoralize them to perform half-heartedly. A blockchain network will be the best fit to track their progress and contributions to respective projects and ventures. An automated system will be beneficial to create a full-fledged reward system to motivate the employees.
- Employee Exit: When an employee leaves an organization, it is a challenging work to catch up to their progress and continue a project from where it was left. Maintaining the signs of improvement and documentation of these projects on a distributed network will help organizations to keep the pace of execution.
The blockchain technology is here to stay, with the applications of the distributed technology in nearly every industry, almost every business is inclining towards implementing blockchain to day to day operations. The blockchain network is hence set to disrupt the HR sector in the given ways. It is time for new and old businesses to adhere to the trend.