You might have heard about the concept of blockchain but do you know how it affects the recruitment process? The concept of blockchain technology was introduced in 2009 with the development of Bitcoin, which is a virtual currency.
What is Blockchain?
A blockchain is a time-stamped series of unchanging records of data, which is managed by a single unit-owned computer cluster. Each block of data is secured and tied to each other using cryptographic principles (i.e., series).
Blockchain In Hiring Process
The concept of blockchain is still finding its place in recruitment. You can say that it is at its initial stage. If you are a recruiter and you are looking for new trends to follow, discover the methods through which blockchain can put a positive effect on the recruiting process.
The employee onboarding process demands for time and efforts of the HR department. This includes background checks, filling up forms and a lot of paperwork. So, how can blockchain reduce these efforts? You can save the time spent on the onboarding process by filing the new employee’s credentials and other information on the blockchain.
For employers, vetting is one of the most tedious and time-consuming tasks. It includes emails, phone calls and records search hours to verify the information and credibility of all the candidates — blockchain speeds up the entire process. Recruiters can easily store all the professional certifications, academic credentials, and related qualifications in the blockchain. Thus, recruiters can easily screen candidates by accessing this information. It will not be easy for anyone to steal or falsify these credentials.
Easy Payroll Management
Managing payroll is a challenge with an increasingly distributed workforce. As a result, there may be employee dissatisfaction due to late payment processing and volatile exchange rates. With the help of blockchain, HR professionals can create their cryptocurrency which will fasten the process of financial transactions. Employees will receive the payment quickly and later, they can convert the cryptocurrency in the desired currency.
When we talk about data, we look for safety. It is important to emphasize the importance of secure data storage with blockchain technology. This is useful for the HR department to save sensitive personal and financial information. Hackers know the ways to hack a system which results in frauds and identity thefts. As blockchain is decentralized, nobody can alter data from a computer.
In recruitment, the general scenario is that there is a contract between an employer and a recruiting company. This includes all steps of recruitment: right from screening candidates to finding the qualified ones.
Blockchain, on the other hand, allows for decentralized recruitment. Companies can use blockchain to create their recruitment marketplace where tokens will be issued to members for each action such as job posting, referrals, etc. This motivates recruiters because they get compensation for various activities whereas employers get more options for talent.
With a smooth onboarding process and payroll management and quick recruitment, there will be an increase in productivity. Blockchain technology will automate repetitive tasks related to supply chain management, legal matters, and accounting. This is how you will get enhanced productivity.
Better Work Experience
As you know that you can keep employees’ information in the blockchain, it helps you to understand the career aspirations and abilities of employees. Based on this information, employers can offer better career opportunities for the employees to grow in the company. The result is happy and satisfied employees.
Using Blockchain techniques in the recruitment process provides many benefits. It will not only simplify the recruitment process but also reduce the amount of repetitive financial and legal paperwork. Also, Blockchain gives immediate and valuable insights into the employees’ records, which show their advancement and result in better employee experience opportunities.
Originally published at https://hr-gazette.com on April 30, 2019.