6 Ways Blockchain Affects Human Resources

Blockchain has already started affecting many industries, and HR is certainly one of them. Furthermore, blockchain content writing is already quite big due to the sheer number of global business sectors the new technology has influenced. 

According to the current predictions, blockchain is set to reach the value of $3.1 trillion by 2030 globally. However, this won’t only be the result of higher efficiency and better-operating models. It will also happen due to a complete paradigm shift in the way businesses and individuals exchange, interact and create value.

Naturally, many will argue that this kind of revolutionary thinking, though normal for new technologies, is only occasionally valid. Still, there is a lot of truth behind it because the disruptive potential blockchain has should not be underestimated. 

But how will the technology affect human resources specifically? That’s precisely what we aim to find out in this article.

2. Time and Resources Saved in Recruitment bu Blockchain

Recruitment is one of the biggest responsibilities of a typical HR department. It often takes so much time and resources that organizations are forced to seek outside help, i.e. help from independent recruiters.

With blockchain, a big part of the whole recruitment process could be shortened and streamlined. What’s more, the role of recruiters could also become redundant at some point.

Namely, most of the information on candidates would find its place on the blockchain, thus saving the HR department a lot of time. Resumes could become obsolete, as grades, work history, certificates, and experience could be easily checked via a blockchain network.

This would be possible, as every employee could get specific virtual credentials that would hold all of their professional histories. If allowed access, every potential employer could easily view this data.

3. Compliance, Regulations, and Auditing

Blockchain also enables everyone to easily erase the information stored on it, as long as they have the right encryption key. With that in mind, every employee would be able to delete their personal information easily. What’s more, they could remove it forever.

But that’s not all — since all information on the blockchain is always valid and accurate, compliance checks and auditing processes would become a lot easier and more streamlined.

4. Entire Life-Cycle of an Employee

Blockchain could affect the entire employee life-cycle once a person is hired just as much as it could affect the recruitment process. 

As previously stated, blockchain could store all the data otherwise found in resumes, including additional information on references and more. However, once a person starts working for a company, this information could also be modified easily. 

So, during their time at the company, all of the employees’ data could easily be updated. Once they change their job, the new employer would have all the necessary and fully updated

6. Secure Payments and Benefits

In the eyes of many, the best part about blockchain is that transactions can be easily encrypted, thus making payments completely secure. 

With this technology, intermediaries — banks, for example — could become obsolete. Companies wouldn’t have to depend on them for processing payments. 

As blockchain technology used in cryptocurrencies already keeps crypto transactions safe and fast, it could easily do the same in other cases.

Bottom Line

As you can see, blockchain has a lot of potential to positively disrupt human resources. There are many ways in which it has started to affect the sector already. However, many others are bound to follow.

The ways we’ve discussed here offer a mere glimpse into the vast pool of possibilities. The technology is incredibly useful and could be implemented across the board, so there are many more methods and ways in which it could be used in HR. 

One thing is certain, though — people in HR need to take this technology seriously and look for different ways to implement it. The time for change has come, which is why you need to strive to be at the forefront of innovation.