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6 Ways Blockchain Affects Human Resources
From:
Ira S. Wolfe -- Success Performance Solutions Ira S. Wolfe -- Success Performance Solutions
For Immediate Release:
Dateline: Lehigh Valley, PA
Monday, April 19, 2021

 

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.

1. Employee Data Security

One of the biggest benefits of blockchain technology is near-absolute security. Due to the inherent nature of this technology, there is little to no possibility for anyone to compromise the security of the data kept in blockchain networks. 

As you can expect, this would do wonders for HR. Private information about employees would become completely encrypted and secured, and only specific people would have access to it.

What’s more, even though all the data would be securely stored away, it would still be easy to share it in tokenized form, which is completely safe, just like all other aspects of this technology.

data security HR

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.

compliance, auditing, blockchain, HR

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

5. Smart Contracts

One of the more interesting features blockchains has brought about is smart contracts. A smart contract is fairly simple and works in the same way as a regular contract.

However, in HR, these could be used to hold the payments in escrow and only release them once the job has been done successfully. In other words, once the terms of the contract are completed, the money would be automatically released. A smart contract enables this because whatever is written into it is completely enforceable as long as both parties agree. 

Since all of this is done automatically by the system, it can streamline worker income and company cash flow like no other technology in the past.

smart contracts, HR

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.

About Success Performance Solutions

Since 1996, Success Performance Solutions has established itself as an HR leader in pre-hire and leadership assessment, respected by both clients and peers. Its portfolio of testing includes administrative and technical skill testing, DISC behavioral profile, personality job fit, cognitive testing, emotional intelligence, and adaptability quotient.

About Ira S Wolfe

Ira S Wolfe is a “Millennial trapped in a Baby Boomer body” and the world’s first Chief Googlization Officer. He is president of Poised for the Future Company, founder of Success Performance Solutions, a TEDx Speaker, host of Geeks Geezers Googlization podcast, and frequent presenter at SHRM and business conferences. Ira is also recognized as one of the Top 5 Global Thought Leaders and Influencers on Future of Work and HR by Thinkers360. His most recent book is Recruiting in the Age of Googlization, now in its 2nd edition, is recognized by multiple organizations as one of the top Business, HR and Recruiting books to read in 2021. He is also the founder of the Googlization Nation community and a frequent contributor to HR and business blogs, including Cornerstone's OnDemand and Medium.

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Name: Ira S Wolfe
Title: Chief Googlization Officer
Group: Success Performance Solutions
Dateline: Wind Gap, PA United States
Direct Phone: 484-373-4300
Main Phone: 800-803-4303
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