Blockchain technology, as a foundation stone for the cryptocurrency in 2008, is a head-turner even outside the payments industry to which it has been restricted in the past.
Blockchain will create $3.1 trillion in business value by 2030. – Gartner Forecast
This statistic shows how enterprises are striving to discover ways of embracing blockchain to revolutionize their business operations and exchange values in this digital world. While blockchain has disrupted fashion, logistics, finance, healthcare, and other sectors, it is ready to shake talent management, HR, and skill development industry too.
What does it mean to the recruitment industry?
Human resource professionals manage volumes of workload, such as determine the staffing needs, screen resumes, perform background checks, recruit professionals, handle their training, and much more. For the seamless execution of these tasks, businesses hire expensive recruitment management agencies. But they are oblivious that Blockchain-enabled business models will present a seismic shift to how HR operations are conducted in the future.
The questions that businesses struggle with-
- What implications does Blockchain have for the future of HR?
- How the HR specialists can leverage opportunities that blockchain offer?
- What are the related risks?
A glimpse into the blockchain capabilities can help in gaining an understanding to align recruitment operations with this evolving technology.
Employee Background inspection
Short term contacts, freelance, and on-demand talent acquisitions have changed the way people work. This further restricts tracking and verifying the background of employees.
With blockchain, it is easier to record, verify, track and manage the candidates’ addresses, employment history, education documents, and much more. The employee records can thus be stored on the digital ledger by tokenizing the candidate’s identity along with reducing the risks of fraudulent applications.
Smart contracts for agreements
The global smart contracts market is expected to reach approximately 300 USD Million by the end of 2023 with 32% CAGR during the forecasted period from 2017 – 2023.- Market research future.
Time intensive manual contract and agreement generation restricts the recruiters to focus on high-value activities like employer branding and enhancing communication.
Blockchain-powered smart contracts generate immutable rights and obligations verified by all the participants on the network. Smart contracts help manage information like employment contracts, digital signatures, and performance reports, among others.
Payroll and settlements
When employees operate remotely, payment management becomes a lengthy process. Handling payments that involve travel expenses, tax liabilities, currency exchange, etc., make the process highly complicated.
Blockchain comes to the rescue by enabling seamless cross-border payments along with reducing risks and errors in the process. The decentralized and secure ledger verifies and validates the data more securely and efficiently. Besides, blockchain restrains the involvement of banks and third parties making the overseas payroll process less time-consuming and cost-effective.
Many times, the legal frameworks of certain countries favor the restriction or removal of confidential information of an entity from the virtual platforms, for instance, the EU’s GDPR.
In such cases, blockchain ensures that candidates of such countries can leverage the entitlements just by erasing the encryption key, making the information undiscoverable for the entities.
Tracking the attendance of candidates becomes a monotonous task that eventually affects the wages and claim processes.
With Blockchain technology, it gets easier for the HR specialists to store biometric data such as fingerprint or iris scan, ID scan, etc., in real-time. Record accuracy and increased visibility reduce errors and disputes and increase the efficiency of the operations like payments and necessary settlements, decreasing the frustration of the HR officials.
Blockchain technology has many more capabilities, ready to be utilized, to drive the focus of the HR professionals on core business functions and goals. From optimizing the operational efficiency and performance to saving costs and time, blockchain becomes a major part of back-office operations resulting in productive business outcomes. So, if you are planning to automate and optimize your back office operations too, Cygnet Infotech’s Blockchain capabilities can surely help you. Contact us today for more information: firstname.lastname@example.org.