Blockchain Set to Revolutionize HR and Recruitment
While cryptocurrencies are popping up left, right and center, with the bigger cryptocurrencies like Bitcoin, Ethereum and Ripple making headlines, there should be greater focus on the technology behind all this- blockchain. Blockchain is going to revolutionize many industries and business processes, to create a more efficient, secure and transparent future. One industry which will be revolutionized is the HR and recruitment industry.
“The blockchain cannot be described just as a revolution. It is a tsunami-like phenomenon, slowly advancing and gradually enveloping everything along its way by the force of its progression. “
- William Mougayar, Author of The Business Blockchain
R&D in blockchain across the globe is increasing as businesses are becoming more aware of how blockchain can improve the way businesses are operated and managed. From production, data management, to businesses processes, blockchain can reduce costs and increase efficiency in a wide range of areas.
One area which is up and coming is HR. Blockchain can turn HR upside down by revolutionizing every process from the recruitment process to background checks, filing sensitive documents all the way to payroll. Currently companies use internal HR processes, outsourcing, online platforms and middlemen in these processes. Through the use of blockchain middlemen can be cut out and unnecessary online payments to expensive portals can also be cut out because blockchain allows a trustworthy way of verifying data and storing it on the ledger. This process becomes cost effective, fast, efficient and accurate.
Profede makes recruitment transparent
Profede wants to fix the currently broken recruitment market. Currently companies have to pay large amounts of money to recruiters or online job portals to find suitable profiles. Many times in today’s recruitment process we find that the profile does not match the job, the profile is outdated or the process is simply too expensive and doesn’t work efficiently. This is why the future will see blockchain being used so that companies can see current profiles and contact relevant candidates who are willing to take the time to look at opportunities.
The recruitment process will no longer require lengthy verification processes to check backgrounds, that the education and previous work are legitimate or references as all this information will be stored onto blockchain and community verified. This makes the HR process faster, more efficient and more transparent for both the company and candidate.
With Profede, recruiters will be able to target the most relevant candidates for a posisition. Recruiters can conduct a well-defined search where the professionals will be much more receptive to relevant offers. As professionals only receive serious proposals from recruiters resulting in a win-win situation. PATOs can be exchanged for services offered by various organizations such as recruitment services for companies. These PATO tokens will make it easier for the recruiting market to shift from being in the main social networks and job portals possession to being in the hands of professionals and businesses themselves.
Users take the time to look at worthy opportunities on Profede
As blockchain allows all the expensive fees of traditional job portals and recruiters to become obsolete through blockchain projects that allow companies to find candidates directly, the function of HR becomes faster and more direct. The HR process becomes efficient and transparent, and the companies can now pay the candidates instead through tokens for their time to look at opportunities.
Professionals become part of the profit equation at Profede. Professionals decide how much they feel fairly compensates them for sharing their data with others, which parts of their data they are willing to share and with whom they are willing to share their data with. This makes the whole recruitment process much more transparent, fast and efficient when it comes to finding the right person for the right job.
As there is an incentive for candidates to look at the opportunities presented to them, if the price they set fairly compensates them for their time then even the more difficult job roles can efficiently be filled as candidates have an incentive to respond. Today professionals can often be busy and have tons of mail in their inbox. Professionals don’t have the time to go through all of the mail in their inboxes to find out which opportunity is worth their while. Through Profede’s protocol these professionals set a price so that when the opportunities are presented to them they will look at them because they are being compensated for their time. This also means that the opportunities are likely going to be relevant ones.
When blockchain goes mainstream, expensive job portals will likely become old-fashioned and obsolete
Currently job portals like LinkedIn are making billions off of user data, but professionals, the real data creators, are receiving nothing. Everyday we sign up to use online platforms that provide their free service, while they make a profit from having and selling our data. Profede sees a brighter and better future ahead, where those traditional ways will be replaced by blockchain technology. Professional platforms like LinkedIn will have to adapt and change or they could possibly become obsolete.
“The blockchain does one thing: It replaces third-party trust with mathematical proof that something happened. “
- Adam Draper, Founder and Managing Director of Boost VC
The future is one where blockchain will be mainstream. Blockchain stores the details of the professionals, in a way that they don’t have to repeat to write the data online. The data will be stored on the ledger and will be accurate and transparent. Professionals can create data and decide what they do with the data as there will be data transparency. This reflects on the HR process also, as HR can see the data and contact professionals directly based on their successes.
Profede’s Growth Plan
Profede designs and develops a open source decentralized ecosystem, upon which external developers create apps and services. The core offering includes the framework enabling external developers to build on top of the platform.
Once the platform is launched, Profede’s team will focus on marketing to small and medium businesses to build the job offer side of the ecosystem, with the expectation that more businesses will bring more professionals, leading to continued growth of the ecosystem.
The massive adoption of the protocol will be reached once the protocol is adopted by several existing and new professional verticals and apps. The first professional network to adopt it will be beBee, with 12 million users, that has already signed an agreement with Profede. Profede aims to close more deals with a wide range of different platforms that can use and benefit from Profede’s protocol:
- Professional networks: In professional networks users interact with each other to find new opportunities or offer services. The professional networks that implement the Profede Professional Protocol will give their users access to a large amount of users and professionals in other networks.
- Specialized professional networks: Much like professional networks but focalized in small groups. For example, engineers and writers will benefit from reaching a large user database that Profede’s protocol offers.
- Businesses: Medium and large businesses that have developed job portals on the Internet to recruit professionals, but they still need to spend money on advertising networks in order to get candidates to apply for their open positions. By implementing the Profede Professional Protocol these businesses would be able to access the worldwide database with millions of validated professionals directly, thus reducing their costs.
- Recruitment experts and headhunters: Recruiters will benefit from a worldwide database and also from the new sales channel that Profede offers from its database of validated candidates.
- Job portals: Generalist and specialized job portals need marketing strategies to grow their candidate databases but once their users find a job they become inactive users. By using the Profede Professional Protocol they could offer their users an advantage to remaining active in that they will be able to earn money through exchanging data with their profile.
- Service Providers: in general all the companies that provide services and value added to professionals will be able to benefit from Profede’s protocol.