Blockchain technology, as a foundation stone for the cryptocurrency in 2008, is a head-turner even outside the payments companies to which it has been restricted in the past.
Blockchain will create $3.2 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, education, and other sectors, it is ready to shake the 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 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, experts. But they are oblivious that Blockchain-enabled business models will present a seismic shift to how HR operations are conducted in the future in the business.
The questions that businesses struggle with-
What implications does Blockchain technology have for the future of HR?
How the HR specialists can leverage opportunities that blockchain technology offers?
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, background verification, 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
Time intensive manual contract and agreement generation restricts the recruiters to focus on high-value activities like employer branding and enhancing communication and many more.
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, and many more.
Payroll and settlements
When employees operate remotely or work from home, payment management becomes a lengthy process. Handling payments that involve travel expenses, tax liabilities, currency exchange, many more, 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 of payment management. 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 process.
Many times, the legal frameworks of certain countries favor the restriction or removal of some of the confidential information of an entity from the virtual platforms, for instance, EU's GDPR.
In some of the cases, blockchain ensures that candidates of some countries can leverage the entitlements just by erasing the encryption key, making the information undiscoverable for the entities.
Tracking the attendance of all candidates becomes a monotonous task that eventually affects the wages and claim processes.
With Blockchain technology, it gets easier for HR experts to store biometric data such as fingerprint or iris scan, ID scan, and many more., 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 experts officials.
Blockchain technology has so many capabilities, ready to be utilized, to drive the focus of the HR specialist on core business functions and goals. From optimizing the operational efficiency and performance to saving costs and time, and 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, Saubhagyam Blockchain services can surely help you.