Blockchain and its impact in HR practice
If you’re like me and have been following banking, investing or cryptocurrency the last few years, you may already have heard of the term, “blockchain”. Yes, it is that technology of keeping records that is often called a distributed, decentralized, public ledger. So a blockchain is an absolute time-stamped series of recorded data that is distributed and managed by a group of computers. Today, blockchain is no longer confined to cryptocurrency alone. Its abilities move across sectors such as healthcare, logistics, textile and even philanthropy.
HR and Blockchain
There is an increasing demand for blockchain in HR and that is not surprising as blockchain is sure to have an effect on HR practice in general. Here are some ways in which blockchain will change the way HR is today.
This is still the most important as well as most cumbersome function of HR as it takes a lot of time and effort. With blockchain, data on the prospective employees can be viewed in advance. This modernises the whole process and checking a bio data and verifying it will all be quicker and visible to all. Also, this means that the problem of bias, trust, and also exorbitant fees can be avoided. The newer HR practice has to be built on technology. The back office requirements of hiring can be made shorter thanks to blockchain.
Apart from hiring, reference is also a key function that the HR undertakes. With blockchain, HR has the access to a prospective candidate’s work record. This is not only accurate, but also impossible to fabricate. Thus the hiring process is more transparent thanks to blockchain.
Blockchain also brings the possibility of a smart contract between employees and employers. This is a win-win situation as there will be no fraud or delay in payments. Apart from that, employers can also ensure that there is no work delay as all the employee work data are stored and calculated.
If you are contractor or a freelancer, this will benefit you more as payments will be made on time. From an employer’s perspective, you can terminate a contract at any point and an otherwise lengthy procedures will now be shorter.
When it comes to auditing of companies as well as compliance, blockchain is the way to go. Audits will no longer be that dreaded period that is time consuming as data in the blockchain is already validated. This makes it faster and easier to check!
Cost to Company
Blockchain technology can be used to store biometric data and this can be used to store unique data of the employees that will help companies to track not only attendance, but also expenses of each employee. With such data with HR, there can be better planning for the future. This also strengthens the trust factor as there is no room for error. Human errors can be avoided by bringing in blockchain.
Anytime, Anyplace HR
All of the information that is stored on blockchain can be accessed anytime from anyplace. It is secure, authenticated, and verifiable as well. It thus helps streamline and augment key aspects of HR processes, in an efficient, error-free way.
One way to improve employee engagement through the distribution of digital appreciation coins for deserving employees. Again, since everything is stored online there is not much distrust in the system of disbursement of these coins. Here is also a clear traceability factor in this technology. These coins can be ultimately en-cashed by the employees.
When HR does not have to spend all its time in various processes and verification, thanks to blockchain, it can spend its time in formulating more strategic goals for the company.
If you are already implementing blockchain in HR, do write to me and tell me how it helps!
Disclaimer: Some of these ideas are already in use in the author’s company