HERE’S A LOOK AT THE DECENTRALIZED INTERACTION BETWEEN CANDIDATES AND RECRUITERS
There is a growing need for automation and application of technology in recruitment, as hiring executives are repeatedly faced with the pressure to hire the best talents in real-time at less cost. In modern times, finding top talent will depend on a recruiter’s ability to automate the hiring process adequately. Studies suggest that 52% of talent acquisition leaders say the most difficult part of their job is screening the right candidates from a large applicant pool. Technology has transformed the major industries which include sports, finance, healthcare, and experts believe the same is happening with the recruitment market.
BLOCKCHAIN FOR RECRUITMENT
Blockchain seems to be the most exciting of the emerging technologies and most impactful on the society. Blockchain is the technology behind Bitcoin, Ethereum, and many other decentralized platforms. Blockchain technology is used to store information in real-time, secure data without friction and execute immutable contracts without a central regulation. The advantage of blockchain is that it stores an indelible ledger of all previous transactions in a string of ‘blocks,’ meaning we know who owns what and who can send what to whom. Blockchain, for instance, decentralizes interactions between a banker and his customers and is perfect because they both do not have to worry about trust.
This has seen industry experts ask if blockchain could decentralize the recruitment market, and solve the inefficiencies in the industry.
One of the greatest weaknesses in the distributed resume is new college graduates who do not have a job history that may demonstrate their value to an organization. However, blockchain could be used to provide verifiable information on a candidate’s educational history and qualifications that would reduce the risk of fraud, eliminating the need for applicants to provide official transcripts. Such a drastic transformation of the way we recruit and hire would require significant changes in the way we run that function. Blockchain will produce employee’s privacy while making the services useful for recruiters.
Data verification and protection is one of the biggest development blockchain will bring to the recruitment industry.
Candidates can provide false information on education, employment history, and other personal data. Blockchain ascertains the veracity automatically which includes academic qualification, employment history, work permit and other relevant information. It offers a safeguard to stopping dishonesty in the areas. The employer scans a letter, duly authorized by the candidate and sends to the college, which validates the claims that the applicant is a graduate of the school. A university could publish encrypted academic credentials to a blockchain, while the candidate would have a wallet allowing them access to their credentials. When a company requests access to their credentials, the candidate provides access directly to the enterprise. This would speed up the whole process and substantially reduce admin costs for the university.
The blockchain technology gives candidates complete control of their professional identity, through the personal encrypted key and world computer data. Online recruiters will no longer make false job applications on candidates behalf, by altering data — blockchain allows you to protect your data, updating at your will. Also, the very concept of the CV itself is ripe for disruption! Utilizing the blockchain technology as a means of storing this data becomes much more fluid, expansive and enabling than the stale old CV or the recruiter asking other recruiters about their opinion of your ability to do a job. John Denehy likened the blockchain technology to Engzig with full competency, evidential, and like a social network in functionality. It thus decentralizes every mutability and intermediary influence in hiring or data manipulations.
Recruit Technologies and ascribe announced in 2016, a strategic alliance to bring blockchain technology to the human resource industry to increase transparency and address fraud in HR credentials. The aim is to investigate the possibilities and practical uses of how blockchain technology can be applied to the human resources sector; they will begin by developing a prototype resume authentication database for hypothetical job hunters.
Jobeum is an example of another decentralized network for business and recruitment professionals. It is a distributed ledger that keeps records about employment, education, completed projects as well as related payment transactions. Jobeum is a blockchain-based network, a transparent system where users control who sees a particular part of the information in their profile. Their profiles become their “digital twins” and earn JobTokens for them when other people ask them for certain information or an action (e.g., open a part of their profile, show contact information, and confirm their skills). Many steps in the recruitment process will be automated via smart contracts, and the hiring process will be much more transparent.
The blockchain is also being deployed for overseas Filipino workers in resolving illegal recruitment, contract frauds, and expensive remittance fees. It will monitor and reduce the time frame of contracts management, and automatically show the employers what to avoid in a job search.
BLOCKCHAIN — A SAFE LANDING FOR RECRUITMENT
Blockchain holds great promise to improve the immediate concerns of the hiring market. The technology bridges the unsecured exchange in hiring between recruiters and candidates while protecting data and validating profiles.