Why Blockchain Can Be a Revolution in the Recruitment Industry

Jobsoid

Kelly Barcelos from Jobsoid puts light on the fact that how blockchain technology can empower and ease HRTech functions like recruitment, background verification, etc.

With the development of virtual currency Bitcoin in 2009, the concept of blockchain technology was introduced. And when we talk about Bitcoin, we are not talking about some breakthrough in a certain industry; it’s an advancement in the underlying infrastructure of almost everything we today do online – the web.

Bitcoin is a digital currency that can be transferred between any two parties without the interference of a government body or bank. And this electronic payment system is powered by blockchain technology. Bitcoin is used through blockchain but that is not its only application; blockchain stores databases that are decentralized and accessible to anyone the owner provides access to. For example, it allows sourcing goods across the supply chain and creates transparency. For this reason, De Beers, a UK-based diamond company uses blockchain to allow its customers to verify that their diamonds are free from conflict.

Fortune 500 companies like Microsoft, IBM, Accenture, Toyota, and JP Morgan are digging deep into blockchain technology and finding innovative ways to use it to their advantage.

Blockchain in Recruitment

Though blockchain is huge, it is still a few years from seeing its prevalent use in consumer space, recruitment processes, talent acquisition, HR, and employer branding. But looking at the advancements of competing businesses, it will not be a surprise if blockchain soon becomes the foundation of all the methods of recruitment.

Read on and find out how blockchain can be a game-changer in Recruitment.

Faster Identity Checks and Background Verification –

Blockchain-based record-keeping can turn the recruitment process around for good in the coming future.

The traditional background check process is expensive, slow, and cumbersome. Most organizations hire a third party for identity verification that includes checks on candidates’ personal information, past compensation data, previous employers’ records, degrees, certification, transcripts, visa status, etc. By introducing verification through block-chain records to the methods of recruitment, HR can get access to this data free of cost.

A candidate can simply store all these data points and details in their blockchain account and grant access to potential employers without any hassle. This also reduces the time taken to complete background verification significantly since HR wouldn’t need to chase down past employers and rely on third-party agencies to validate their prospective employers’ information.

 Resume Validation – As per CareerBuilder, 75% of the HR managers said that they caught candidates lie. In today’s time, there is hardly any fool-proof recruitment technique to ensure that candidates do not lie on their resumes. But with the use of blockchain for record-keeping, this problem can be solved. Since the data flow under blockchain is automated, it would become impossible for the candidates to lie during the recruitment process. Recruiters can access candidate data flowing directly into their database from academic institutions, government bodies, and their past employers, and can be confident that their hiring decision would be right. Moreover, any false information is rejected by blockchain, which means candidates cannot make fake entries.

Decentralized Recruitment – Blockchain has a huge potential for transforming the recruitment process also because it decentralizes recruitment. This means that the candidate data has multiple access points depending on whether they allow someone entry to their database. Think of blockchain as an open ledger, or in more technical terms, a computer database that is stored across multiple computers. It is unlike a centralized database where a central government body or company processes people’s data. This increases transparency yet maintains security.

Moreover, a recruitment firm sources candidates for hiring companies. But with decentralized recruiting, recruiters can tap into a wider and more talented pool of candidates since participants can earn tokens for various actions they take, such as, posting jobs, sourcing candidates, referring friends, etc. The fact that the income doesn’t depend on whether the candidate gets selected, everyone is monetarily motivated to do their bit in the recruitment process.

Fast Employee Contracting – Recruiters who depend majorly on paperwork can face trouble and delay in contracting employees. But those who want to eliminate this inconvenience and also work on employer branding can use blockchain to their advantage. This is because blockchain can hold important contracting data, such as payroll details, electronic signature, security access codes, psychometrics, and performance reports. This allows employing candidates almost immediately and reducing the wait time.

Blockchain frees up time that would otherwise be used in hefty paperwork and allows recruiters and HR to focus on more important tasks that require human intervention. This is also critical in improving communication with the candidates and enhancing the employer brand.

 Data Security – It is critical for HR to store employee data securely since data breaches can land them in legal complications. And we are no strangers to frauds and data thefts in this age where hackers can gain illegal access to a centralized system. With blockchain decentralizing data, HR can have one less thing to worry about. The secure blockchain technology prevents hackers from gaining access to employee data because it is not stored in one single machine.

 Easier and Efficient Onboarding – Onboarding can be a mess since there are many transactions, including creating accounts, giving key card access, setting passwords, sending long emails, following checklists, etc. But this process can be optimized using blockchain. Blockchain can automate these tasks using smart contracts and help HR save a lot of time and improve the employee experience. In fact, it also has other potential applications, such as automating stock plans and paying freelancers. This can be revolutionary especially since many companies hire dedicated professionals who take on these activities.

Recently, Oracle applied for a patent for the use of transformative blockchain technology to make employee workflows more efficient. It has realized that blockchain can become the future of recruitment.

Efficient and Easy Payroll Management – The global workforce is getting increasingly distributed. And this is posing several challenges in terms of employee satisfaction. Volatile exchange rates and late compensation/payment processing are the two main roadblocks in creating a stellar employer brand. With the help of blockchain technology, these challenges can be overcome. It allows exchange through cryptocurrency which accelerates financial transactions, and that means, employees and vendors can receive their salaries and payments in no time and also convert their cryptocurrency into the desired currency.

 Increased Productivity – Blockchain technology allows creating a quicker recruitment process and smoother onboarding and payroll processes. And when repetitive tasks related to accounting, supply chain management, and legal matters are automated, productivity levels can go significantly up. Instead of doing monotonous tasks that kill creativity, HR professionals can be more involved in human tasks that require human skills and expertise.

 Better Employee Experience – Blockchain applications involve more than just storing personal, academic, and professional data of candidates. It can help HR to understand the interests, career aspirations, and goals of employees based on which, they can offer them better career opportunities that would ascertain their growth.That’s how organizations can show that employee satisfaction and happiness are their top priority. And this means – power to retain employees and avoid unnecessary costs of hiring again.

Blockchain may be in its baby phase, but it has the potential to become as huge as the internet, the thread that connects our lives. And those who begin early can surely get the most out of it. Find out how blockchain can fit into your recruitment process and help you make your employer brand stronger.
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ABOUT THE AUTHOR

Kelly Barcelos

Kelly Barcelos is a progressive digital marketing manager specializing in HR and is responsible for leading Jobsoid’s content and social media team. When Kelly is not building campaigns, she is busy creating content and preparing PR topics. She started with Jobsoid as a social media strategist and eventually took over the entire digital marketing team with her innovative approach and technical expertise.

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