Blockchain is the New Disruption in HR
In one of our previous blog titled ‘The Potential of Blockchain’, we discussed why blockchain is the next generation of transaction systems. To continue the discussion further, in today’s blog we would like to discuss use case of blockchain in Human Resource.
“Blockchain technology can be incorporated into multiple areas. The key use of blockchain today is as a distributed ledger system for cryptocurrencies which is identified as the popular ‘Bitcoin’.”
Blockchain’s decentralized network of computers verifies and automates the flow of information. And that makes it a trustworthy system which stores the data as a neutral party. This is the reason why several industries are trying to make a use case of the blockchain. Along with the trending use cases of blockchain we all have been reading and talking about, blockchain also has potential to disrupt the way HR is functioning. Starting from hiring to exits, payrolls, and the entire employee journey can be put through many changes using blockchain.
Think of a scenario where you have multiple blocks storing employee information at various touch points of the employee journey starting from the education to the first job and second and another one. A system implemented using blockchain would keep a record of the entire employee journey in a decentralized fashion accessible to relevant parties (colleges, employers, third-party verification agencies etc.) based on the provisioned authentications.
Blockchain provides a decentralized and secure ledger which gives participating parties a way of validating the information related to a transaction. Recruitment is a classic use case that we can think of which becomes the first step of any employee journey. We can create and store digital records of the employee at the time of hiring and use it as required with the access keys. Now, as the employee journey begins, one can start mapping and store a different set of information in multiple blocks like Performance, Salary, Certifications, Training and in the end exit record of an employee. This will actually work like a footprint of an individual which can be exchanged digitally by the stakeholders. A user can use same blocks and grant the access to the new employer to access his/her employment history for which you do not need any verification now as it comes from a trusted source.
We will not only save time but it will make the entire process flow more efficient and reliable. There will be authentic data which an individual will be sharing with all employers and one cannot alter the resume based on which position /company he/she is applying. This will help companies take better decisions w.r.t. hiring right candidates. Similarly, there can be multiple automated workflows which can be automated like Payroll and other routine tasks.
A lot of people are debating and talking about Impact of Blockchain on HR whereas we should talk about how fundamentally blockchain changes the way we manage people and data being in HR. I am looking forward to seeing interesting use cases from the HR industry and if you are aware of one, please leave a note in the comment section as a help to the entire HR fraternity.
Let’s create more blocks as an information about this topic and create one HRCoin which will be useful for everyone