We’re on the cusp of witnessing blockchain technology revolutionize human resources processes in significant ways. Blockchain is most often associated with cryptocurrencies like Bitcoin, but blockchain technology has the ability to influence and affect much more than just currency. Human resources will be affected by blockchain technology in a number of arenas- from payroll to recruiting and hiring. Because blockchain, if put simply, automates the flow of information through a decentralized public domain, HR professionals will be able to use this technology to build more direct and accurate systems.
Here are a few ways in which blockchain technology can potentially affect the field of HR:
Trustworthy records and information verification
This may all sound a little too sci-fi to be true, but blockchain technology may render traditional hiring methods obsolete. Hiring managers typically spend a lot of resources and energy verifying a candidate’s employment history. With blockchain technology, hiring managers will be able to quickly access a centralized network and be able to confirm the people, places, and dates on a resume as true or false- from employment history, criminal records, and work performance will all be accessible.
Imagine not relying on background check firms or applications or even LinkedIn or another social media platforms to verify a candidate’s information! Because every block of information is connected to a previously verified data block, hiring managers will be able to work within a completely secured and verified system. Blockchain will not eliminate the human from human resources entirely. The need for HR hiring managers or recruiters and their vast networks and human relationships are key to the hiring process, simply the entire operation will be more simple, trustworthy, and cost-effective.
Manage cross-border payments
In today’s global economy, more and more teams are working remotely and taking advantages of lower costs and great talent abroad. Working with a remote team and get tricky when it comes to transferring salary across borders. Sites like PayPal charge a fee and if paying large sums or many employees, this fee can add up and affect your costs of doing business.
Thanks to blockchain technology, cryptocurrencies and be exchanged and moved globally, at virtually no cost. Furthermore, the exchange is kept secure and verified. Your business may not be ready to move now into working with bitcoin or ethereum, but this is an area in which to follow news and developments if your business operates internationally.
Blockchain technology possesses the potential to relieve the burden of detail-heavy tasks that fall on the human resources department. The advantage is not only in the tasks, but also in the elimination of human error from such tasks associated with taxes, payroll, and other data-heavy processes.
Additionally, blockchain may be applicable to HR in terms of reducing fraud and strengthening cybersecurity in the HR sector for both employees and contractors. Once the correct systems are in place, your business has the potential to dramatically reduce costs on specialized developers and expensive software.
Blockchain technology has not fully infiltrated the human resources field. This is a new technology still growing and developing, and slowly many businesses are beginning to explore its potential. In the past year, major companies like Uber, Dell, and Google have begun to invest heavily in the technology. Any business owner or HR employee will benefit from keeping their eye on this developing tool, it’s time will come and those to take the opportunity first will certainly reap its benefits.
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