Where there's data, there's a blockchain and where there’s blockchain, there’s a boon. The blockchain is unblocking ample of growth opportunities for businesses. Sectors like security, telecom, and insurance are already blessed by this highly disruptive digital technology and from Finance to Marketing every functional area is manifesting its potential. But, every successful adoption in the corporate world starts from the HR department. Hence, a business must explore the implications and benefits of blockchain in HR before transfusing it in the rest of the organization.
From reliable employee verification to problem identification in the workplace, blockchain can make the HR simpler, easier, speedier and cost-effective. Its benefits are more palpable in activities which are Data-centric and time-consuming.
It is time HR leaders should become familiar with blockchain. They should be thinking about how processes could change in their worlds with the existence of a secure, validated digital identity 'owned' by candidates or employees, not by third parties. There are some current challenges but, once the network effect kicks in, the growth of blockchain technology could be exponential.” Primarily, the core benefits that HR can derive from blockchain technology are recruitment, performance monitoring, upskilling and fraud prevention. Apart from these, blockchain technology can also contribute significantly to the HR in transforming the routine tasks into automated ones and managing employee mobility. This is just a beginning, in the long-run; blockchain has immense potential to bring drastic changes in reshaping the core HR processes.
How Blockchain is going to make HR fast and agile
- Resource management and administration
The enhanced ability to match people’s skills and performance to the job profiles they are assigned to would provide uplift to productivity across the nation. Small and medium-sized enterprises (SMEs) may benefit particularly. The burden of finding and recruiting the right talent is especially heavy for smaller businesses and by helping them achieve this more effectively and efficiently will boost their productivity to great levels. With high-potential targets areas like payroll and VAT covered under blockchain applications, the administrative burden on SMEs would be greatly reduced thus, helping them focus more on serving customers and growing their businesses.
- Learning & Development
Blockchain could bring immense improvement in the condition of both sides of the employment relationship by empowering it with the ability to maintain and control access of a comprehensive & trustworthy blockchain-based record of the employee’s and potential employees’ education, skills, training and workplace performance. Such valuable support would better sculpt the skills, training, and experience of the individuals into a genuine value in the employment market. By applying analytics to the data, companies would be able to match individuals to roles much more accurately and effectively.
- Authentication and verification
There are certain initiatives that include much more than certification. Seed funding for projects is one such factor that gained a growth of almost 20% since 2013 and the unconventional HR tech vendors are even into exploring its possibilities and benefits. At present, the belief is that this technology will relieve HR from the need of validating documents such as qualifications, position history, job experience as well as transactional data such as medical certificates, address changes, and tax file data. Similar to their use in other cases: Once the record gets created by the source and stored in a block, the HR system could link it to that record and digitally assure and accept its authenticity.
- Off-shore payments and mobility
The initial stages of the blockchain structure for multinational companies might include the creation of their own blockchain-based corporate currencies or “coins” that can be used to transfer and transact values across their supply chains that are spread globally, free of the friction and costs of third-party reconciliation.
Over time, central banks will also become a part of this revolution and will soon be introducing their own blockchain-based means of exchange to support convertibility into “official” currencies.
- Fraud prevention and Data protection
HR holds a crucial involvement in subject matters involving high-volume financial transactions and responsibility for a wealth of sensitive personal data and these are the areas where blockchain’s benefits are especially important. The consensus use of Blockchain to establish facts helps to squeeze out fraud. Cyber risks are largely springing out from an underlying lack of transparency in systems and data which is a huge challenge and a matter of concern that blockchain can help to address.