Blockchain and HR

Blockchain and HR

Blockchain, the information technology behind bitcoin and cryptocurrencies, is increasingly gaining ground, both in the financial sector and other more diverse fields. For example, the potential of blockchain in sectors such as HR and recruitment is enormous and, according to the latest edition of the Hays Journal, this technology is destined to revolutionize the business world.

But what exactly is blockchain? It is a digital network of nodes that transfer digital value through a system of cryptographic algorithms and rules, forming an open register, distributed via peer to peer technology, through which to track transactions between two parties in a verifiable and permanent way.

The Hays experts interviewed various HR managers from important companies, such as PwC and Deloitte, asking them to offer an opinion on the potential uses of blockchain for this sector. As a result, numerous possible applications have emerged regarding a technology that is still largely unexplored.

1 – Data verification

Blockchain can be used to verify the identities, qualifications, credentials and experiences of potential candidates during the selection process.

2 – Candidate qualification assessment

Blockchain could replace a candidate’s traditional references. Once a qualification is achieved, professionals can add the certification to the blockchain. This new competence will then be verified and will not require any further future evaluations, making it directly available to any recruiter and/or potential employer.

3 – Identification of potential candidates

Blockchain technology could prove to be an excellent ally for the reduction of selection timing and to increase accuracy, both fundamental aspects in order to guarantee the best match between enterprises and professionals.

4 – Drafting of contracts

This technology, in fact, allows the creation of intelligent contracts in which, in a fully automatic manner, certain actions are envisaged only if all the conditions set out in the agreement are met.

5 – Collection of employee information

Using blockchain technology could greatly simplify the HR department’s job, allowing one to quickly archive all the information and keep track of any changes in the data.

6 – Employee payroll

Last but not least, blockchain technology could be used for the employee payment systems. This is a more advanced aspect, but there are already examples of this technology being used based on the assumption that bitcoin and cryptocurrency will soon be stable enough to support the entire payment management system of a company’s employees.

While the potential of this technology is enormous, every application in the HR world must be evaluated and tested very carefully before being implemented.