Blockchain & its applications in HR Technology
Through blockchain's distributed ledger technology, multiple parties can securely share data. It is also fit for facilitating smooth financial transactions without middlemen. These two things make blockchain a boon for many HR functions. Furthermore, the administrative burden on the HR teams is significantly reduced, leaving them with more time for value-creating tasks. The future of blockchain in HR technology is bright, as its many benefits cannot be ignored for long.
Blockchain technology has set foot in all kinds of business activities because of its various benefits. The applications of blockchain in HR are not mainstream yet, but they sure are an invaluable asset for the HR professionals who are aware of them.
A blockchain is an immutable shared ledger across a network. It is a decentralized and secure database that can store any information in digital format. Blockchain is the technology behind the largest cryptocurrency - Bitcoin.
Some of the many applications of blockchain in HR are given below:
Blockchain-based applications have high levels of security as they operate on algorithms and only the relevant people who have access can view the information. Also, the data in a blockchain cannot be altered or hacked, thereby protecting the sensitive personal information of employees. HR professionals can be sure that data stored on a blockchain is secure and not prone to cyber-attacks. The security provided by blockchain technology also helps while doing high-volume transactions across the globe.
Candidates’ identities can be tokenized on the blockchain and they can securely share important documents like college transcripts, training certificates, resumes, and career achievements with the recruiter. On the other hand, the recruiter can be ensured that these documents have not been tampered with. Candidate and employee data can be verified easily. The process of submission and verification of documents is streamlined to a great extent, reducing the workload of the HR team.
Blockchains can help to manage contracts between employees (permanent or contingent) and the employer. This is done with the utilization of smart contracts on the blockchain. Smart contracts are programs on a blockchain that self-execute when pre-set conditions are fulfilled. This helps to reduce paperwork and human intervention in the entire process. This application also automates employee benefits administration, saving a lot of time for the HR team.
Blockchain technology enables companies to make payments across the globe smoothly without any third-party costs and intervention. Transactions stored on a blockchain also give way to a streamlined auditing process, as this data cannot be hampered. The receivers of income will no longer depend on banks to process their salaries when blockchain-based transactions are done.
Compliance with regulations
Blockchain protects the user's data and users have full control over who has access to their personal information and for how long. Regulations like the General Data Protection Regulation (GDPR) in the EU that protects the user’s data privacy can be compiled with the help of blockchain. Employees can delete their encryption key and make their personal information irrecoverable in case they are leaving the organization.
Alok Nidhi Gupta has built this high tech company from scratch as Co-creator of the organization and lead the organization that filed patents in Smart Metering fields. He has been instrumental in the entire design & development of TalentRecruit’s software offerings, it is under his leadership that recruiters across industries have come to rely on TalentRecruit’s robust solutions.