What is Blockchain and Why It can Help Human Resource Managers
Blockchain Technology is being touted as the next big thing to emerge in the field of distributed ledger systems.
Blockchain works by maintaining a database of records where each record is stored in the form of an encrypted key and where each record can be authenticated for accuracy, genuineness, and security maintained through peer to peer verification process.
For instance, any changes to the records are done only after such changes are authenticated by the rest of users in the system so that wrong and incorrect data is not stored in the database.
This peer to peer verification ensures data integrity and data consistency across the system and hence, is a boon to those who are looking for ways and means maintain reliable and accurate data.
Where such efficiency matters is in the realm of organisations having to access secure data such as employee data, applicant data, attendance data, payroll data, compliance data, and most importantly, reporting the data on dashboards.
All these functions that a typical Human Resource Manager does everyday can be made easy and efficient through the use of Blockchain technology which means that implementing it would enhance the effectiveness of such operations.
Specific Case of Recruitment which can be Made More Efficient
To start with, take the case of the recruitment process where HR managers need the applicant data to be correct and verified so that there are no fake resumes or fudged applications reaching the system and worse, such candidates being selected.
To ensure that applicant data is correct, HR managers can simply use a Blockchain database to access the same and verify it using the Distributed Ledger Technology.
Indeed, resumes can become a thing of the past as HR managers can simply access applicant data in an industry wide database and then, track the progress of the candidate during his or her education and career that eliminates the chances of fake data and fudgy applicants reaching the organisation.
Further, having industry wide Blockchain databases also ensures that each candidate is evaluated for the accomplishments that they have done without having to search multiple data stores or many such databases.
In other words, finding whether a particular candidate is what he or she claims to be is made easier.
Thus, Blockchain is best used for automating and streamlining the recruitment systems in organisations that reduce time, increase accuracy, and help HRM staff to become more efficient.
How Blockchain Helps Gig Economy HRM Staff to Streamline the Processes
Another key advantage of using Blockchain is in the realm of the so-called Gig Economy or the Part Time work component in organizations.
Using Blockchain, HR managers can ensure that all linked data such as the number of hours worked or the tasks completed is accurate and reliable and at the same time, by linking the wages and the payouts to the former, timely payments can be made without the HR managers having to go through each of the records for the Gig Workers.
Indeed, the emergence of Blockchain is parallel to that of the Gig Economy and perhaps, this explains why both have become so popular for organisations to implement.
Moreover, Smart Contracts can be drawn up wherein minute details and deep data can be maintained for each Gig Worker and in the process, HR managers can also use the same Industry databases to verify whether such part timers are what they claim to be.
In addition, there is no need for elaborate verification systems for payroll, reporting, auditing, and compliance.
Thus, each of the activities in the HRM value chain becomes more efficient with the use of Blockchain technology reducing time and ensuring that organisations can derive efficiencies from the economies of scale and the synergies from integration.
Reporting, Auditing, and Compliance Processes
Any technology is usually associated with innovative and efficient improvements over the existing processes. Blockchain too fits into this with its emphasis on streamlining and time reduction of each task in the HRM value chain.
Moreover, reporting becomes easy as all that the HR staffs has to do is to pull out the relevant data from the ledger or the database and then without having to verify such data in a time consuming manner can instead, use it to enhance the efficiency of reporting.
In addition, legal auditing and compliance usually demands the most accurate and timely data and Blockchain due to its obvious advantages in this respect can ensure that such regulatory reporting is made easier.
Further, reporting on dashboards such as an automated HR Scorecard real time reporting system is also part of the benefits that Blockchain brings to the table.
Of course, overreliance on technology has its own drawbacks and hence, it is also the case that HR managers have to have access to the most trusted ledgers containing the data and not trust any database blindly.
How Blockchain Rocks?
Last, using the combination of Blockchain, Artificial Intelligence, and Analytics, HR Managers can become more predictive in anticipating trends related to HRM. They can fill in vacant positions in a timelier manner as these technologies reduce the time taken by leaps and bounds and what more, they can also enhance the authenticity and reliability of data. In addition, they can scale up quickly which means that there is a wider applicant pool as well as a deeper data store to draw the data from.
With all these advantages, industries insiders predict that it is a matter of time before most, if not all organizations adopt Blockchain for HRM.