Blockchain Is Changing The Way Organizations Recruit
The season of cryptos continues. People are piling into the crytocurrency universe looking for – instant gratification. It’s as if everyone is talking about, speculating, or trading in cryptocurrencies. It’s surreal and those who are not already into the whole blockchain tech, look at it as they would, a fly-by-night operator. But beyond the cryptocurrencies and the ICOs, there’s a lot that a blockchain has to offer.
Blockchain makes it possible to exchange data securely, in a distributed manner. It maintains a growing list of data records most efficiently, which are validated and recorded permanently. It is almost virtually impossible to mishandle or tamper with data on the blockchain. This makes it perfect for all sorts of transactions in the business world.
Employment Verification Processes
Every business strives to stay on top of how the latest technology is incorporated into their internal and external business processes and procedures. And the latest blockchain technology is creating waves in the business circles by offering a highly competitive advantage for companies.
Background Checks
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Background checks form a crucial part of a company’s employment process. This involves conducting an investigation into the applicant’s background and checking the references.
This is done to ensure the candidate is not only qualified for the job but also in an attempt to decrease organizational risk that comes with hiring people with a dubious or criminal background. Hiring the wrong person can prove to be very expensive for companies.
However, a background check is one of the most arduous tasks that involves a lot of time. Even after processing a whole lot of information, hundred percent accuracy of information may not be possible.
Unlike earlier, when a candidate held one or two degrees and worked for a long duration with one employer, the employment landscape is very different today with the individuals having more jobs and a wider range of educational achievements. This makes validation a more difficult and time-consuming task.
The same employers that previously outsourced this job to a background check provider are now actively seeking new methods of recruitment.
The blockchain can make a huge difference to the human resources personnel in a large organization. With a huge database filled with a large number of records at their disposal, finding accurate background information is easy. Everything from the applicant’s employment history, criminal records and all other background information can be stored in the blockchain ledger.
The University of Melbourne, Australia is already using Blockcerts, a system that checks credentials using the blockchain technology. This system, developed by a U.S. company called Learning Machine, tracks the credentials and certifications of students, on the blockchain.
Education Verification
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Many universities are already offering their students, the option to store data.
Thomas P. Keenan, professor of Computer Science at the University of Calgary, explained: “In a blockchain world, the transcripts would be tamper-proof and, basically, signed by the issuing institution. We already do this for our students at the University of Calgary by allowing them to put volunteer positions on their ‘curricular record,’ which we then certify for them.
He also talked about the need for cost reduction. He said that a lot of time is invested into checking the details of students from universities in foreign countries. He believes that a blockchain registry can make it much easier to validate institutions.
Fraudulent certifications are generally a major problem, especially for companies who have offices in different countries. It becomes very difficult to track information from educational institutions in other countries.
Blockchains can provide organizations with the applicant’s education trail.
Past Job History
Apart from education, there is the job history, companies have to look into, when hiring. What if the company the applicant previously worked at is no longer operational? This may lead to many dead ends when trying to contact the HR department.
Not getting proper information may lead to not employing the person. By doing this, they may miss out on good talent. On the other hand, there is also the possibility of hiring the wrong person.
Companies are now looking at storing employee information on the blockchain, to help solve this major problem.
Criminal Records
One of the major aspects of a background check is the criminal records check. Very few companies provide these details on their website. Generally, a criminal history investigation of the person is done by the background check company hired by the company. They look at court records. But the problem arises when a nationwide search is required, since these records are maintained in the respective courts of each state as opposed to a national database for the public.
As you can see, this is expensive and time consuming. A blockchain that maintains a record of all criminal activity by employees, can be immensely beneficial.
After Hiring
Apart from the educational, employment and criminal records, there is a whole lot of information that can be stored on the blockchain. Blockchain smart contracts can prove to be extremely useful for organizations.
Blockchain Smart Contracts
The blockchain smart contracts can help store information related to the salaries, bonuses, retirement and other benefits. For example, with a smart contract in place, an employee bonus can be activated automatically, based on fulfilling a certain criteria.
A smart contract is a computer protocol intended to facilitate, verify, or enforce the negotiation or performance of a contract. ... The most prominent smart contract implementation is the Ethereum blockchain platform, where they are known as a decentralized application. ~ Wikipedia.
Imagine a company outsourcing their work to an employee residing in a different country. A smart contract can trigger payment, once the job is done by the freelancer. How convenient is that?
Conclusion
This is just one of the applications for blockchain – there are hundreds of such applications where blockchain implementation can transform the way organizations access and protect important information. Staying in the know about the latest developments in the blockchain and adopting it at this early stage, can be advantageous for companies.
Has your company adopted the blockchain technology yet? Look forward to your comments.
