How Blockchain Technology is Changing the Face of HR Management?
When it comes to finding out a secure way of recording business transactions among multiple stakeholders, blockchain is one technology that gets a special mention. Do you know $1 billion investment has been using blockchain technology over the past five years in Venture Capital Investment?
This clearly indicates the fact that the phenomenon is all set to take the industry by storm. And when it comes to fuelling corporate organizations for growth and revenue, efficient HR management policies play a crucial role. From all leading academic assignment help firms to the ones belonging to conventional sectors like banking, management and law; all of them have embraced HR digitization as a game-changing phenomenon.
76% of HR leaders are of the opinion that employee recruitment practices are underutilized at their organizations. This calls for efficient management that would address such issues and help the firm grow with effective solutions.
So, how about leveraging the potential of blockchain technology to enhance HR management efficiency? Wondering how? Here’s everything you need to know.
Improved Central Verification Procedures
Reportedly, 84% of employees were caught lying on their resumes. Now, this is one critical issue that needs to be addressed as early as possible. Blockchain technology is said to be one reliable tool that will reduce the time spent on conducting background checks to a significant extent. Consequently, keeping a check on fraudulent activities would be easier, thus, restoring faith in the entire process of employee recruitment.
- Blockchain technology ensures accurate data retrieval and a better way to target the right candidates with the right jobs.
- Universities and colleges could publish encrypted academic credentials to a blockchain database. This would enable the candidates to access the same and share the data with their potential employers.
- Blockchain technologies powering mobile wallet applications will help students to add and display their certificate on the platform for the employers to take a look at.
- The technology can help recruitment teams strike a fine balance between accuracy and speed.
More Transparent Employee Referencing Process
Over the years, the process of employee referencing has changed a lot. It is said that the process is likely to change soon in the near future. As blockchain will make it easier for the recruiter to access a candidate’s employment record, the process of referencing will become more transparent.
According to Forbes, if we fully utilize the potential of blockchain technology, it will create more effective approaches that will enhance the functionality of Human Resource management.
As a result, the technology will help recruiters address all fraudulent credentials, thus, increasing the chances of hiring better talents, suited to the particular business niche.
Enhanced Data Security via Virtual Platforms
According to reports, enhancement of data security is one of the primary benefits of using blockchain.
Now that you wish to know how, take a look here:
- Blockchain ensures efficient HR management with enhanced data security by breaking all major information into tiny chunks and distributing it across a huge network of computers.
- As a result, each computer will have a complete copy of the data. This will help in preventing data loss in case of multiple computers crashing down.
- Blockchain is virtually impossible to hack due to its decentralized nature.
- Moreover, data management via blockchain technology is encrypted and cross-checked by the entire network.
Lesser Time Spent on Employee Life Cycle Evaluation
The entire employee life cycle is expected to be changed for good if blockchain technology gets implemented. It goes without saying, the current procedure associated with hiring a new recruit is lengthy and complex. The process doesn’t end with verification or referencing. Rather, it continues throughout employment until the employee finally leaves the company.
Jeff Mike, Vice President and HR research leader for Bersin by Deloitte said, “The reason it is relevant because blockchain creates the potential for personal data to be owned by the individual rather than the organization.”
This makes all the difference. When bulk information is streamlined and personalized, the process of evaluating the employee life cycle would be more secure and portable.
Cross Border Payments Should No Longer Be a Major Concern
When it comes to Human Resource and Workforce management, one cannot afford to overlook the aspect of cross border payment. Creating blockchain-based corporate currencies or bitcoins is said to be one of the most effective strategies corporate houses can implement in order to fuel cross border payments, thus, ensuring maximum mobility.
It’s a known fact that gig and contract workers are often required to wait for the payment to be made, as the entire process undergoes manual verification. With the blockchain technology being introduced, the automated payment system shall no longer be a far-fetched dream for the HR management teams.
With the new-age contractual payment system being implemented and powered by the Blockchain technology, here are the benefits business houses might expect down the road:
- Blockchain technology ensures fast, secure and low-cost international payment processing services.
- The use of encrypted distributed ledgers provides real-time verification of transaction without intermediaries like the intervention of banks.
- Both employee and employers’ minds would be put at ease if blockchain, as a technology, ensures secure transactions across all major virtual platforms.
To Wrap Up
Lest we forget, blockchain is a peer-to-peer network of ledgers that would encrypt and store blocks of data or digital history that can be accessed and verified by anyone authorized to use the network. However, before signing off, let me share some valuable suggestions that would help you rope in the best blockchain technology to enhance HR management:
- Determine the value of blockchain and find out if the technology would work well with your HR database.
- Ensure the fact that the technology is kept up-to-date with blocks storing information about date, time and financial transactions.
- It is suggested to connect your computer to the blockchain network and give access to select members, instead of making the platform available to a large group.
Now that you know how the technology would enhance HR management with regards to employee recruitment, referencing, verification and cross-border payments, embrace the best practice to fuel organizational growth. Good luck!