Imagine a notebook that everyone can see and write in, but no one can erase or change what is in it. That’s kind of what blockchain is. It’s a digital notebook that stores information securely and tamper-proof.

Blockchain allows you to securely store information where everyone can see it, but no one can change it without everyone else knowing. This makes it perfect for storing important documents, tracking money, and even voting in elections.

Blockchain is a distributed ledger system that securely records transactions and data in a way that is tamper-proof and transparent. This makes it ideal for so many HR tasks, such as verifying employee credentials, managing payroll and benefits, and tracking employee performance.

Advantages of Using Blockchain in HR

There are so many benefits to using blockchain for human experience and recruitment. Let’s explore the benefits:

• Enhanced Data Security

Imagine you have a secret diary that you keep hidden under your bed. Only you know where it is and only you can read it. Blockchain is like that secret diary. It’s a way to store information securely so that no one else can see or change it.

Blockchain is decentralized, which means that it’s not controlled by any one person or organization. Instead, it’s maintained by a network of computers all over the world.

Also, blockchain is immutable, so the information stored on it can’t be changed or deleted without everyone on the network knowing.

These features make blockchain the perfect medium to store sensitive HR information, including employee salaries, benefits data, and performance ratings.

For example, in 2013, Yahoo suffered a massive data breach that affected over 3 billion users. In 2017, Equifax suffered another data breach that affected over 147 million people.

Blockchain stores data in a decentralized and immutable way. This means that even if a hacker were to gain access to a company’s HR system, they would not be able to access or change the data stored on the blockchain- people’s data would still be secure.

• Transparency and Trust

Let’s say you’re playing a game of checkers with your buddies. You’d like to make sure everyone is playing the game fairly, so you’ve decided to record all the moves in a ledger. 

Blockchain is that ledger. It’s a way of recording information in a way that’s easy for anyone to see. 

Blockchain transactions are public and can be viewed by anyone. This makes blockchain ideal for promoting transparency in HR processes, such as hiring, performance reviews, benefits agreements, and promotions. This can help to build trust between employers and employees, and it can also help to reduce fraud.

For example, when a company hires a new employee, they need to be able to trust that the employee’s resume and credentials are accurate. You can use blockchain to verify the authenticity of employee credentials, such as educational degrees, work experience, and skills.

• Reduced Administrative Overheads

You can use blockchain to automate and streamline administrative tasks, such as payroll processing, benefits administration, and employee onboarding. This can free up HR professionals to focus on more strategic tasks.

For example, the company Bitwage uses blockchain to process payroll payments for employees around the world. Bitwage has been able to reduce payroll processing costs by up to 90%.

• Efficient Verification of Credentials

When you’re applying for a job, applicants have to provide their resumes and transcripts. They have to mail them to the employer, and HR has to review these applications one after the other, this is not time-consuming but also inconvenient.

One of the best use cases of blockchain is to store employee information on the blockchain. That way, employees can share their credentials with potential employers and provide them with a link to access their blockchain profile to verify their information.

For example, the company Blockcerts uses blockchain to create tamper-proof diplomas and certificates. Blockcerts has partnered with over 100 universities and educational institutions to offer blockchain-based diplomas and certificates.

• Elimination of Resume Fraud

Sometimes, as a recruiter, you see a resume that looks too good to be true. The applicant has a perfect resume, with a degree from Harvard and 10 years of experience at a top tech company.

Of course, you would want this candidate, but what if the applicant is lying? Well, you can find out with blockchain.

When an employee is hired, the company can collect and store the employee’s credentials on the blockchain using employee detail forms. This creates a tamper-proof record of the employee’s qualifications.

So, if employees leave the company and are searching for new employment, potential employers can check and verify their resumes with their employee records.

Examples of Blockchain Implementation in HR

Here are some top companies that have adopted Blockchain in their HR process:

1. Chronobank

Chronobank is a blockchain-based HR ecosystem that connects freelancers and employers while ensuring secure and transparent payments. It uses blockchain to create a secure and transparent payment system. 

When a freelancer completes a job for a client, they are paid in Chronobank’s cryptocurrency, Chrono. The Chrono is then stored in a secure wallet that can be accessed by the freelancer.

When the freelancer wants to withdraw their earnings, they can do so quickly and easily using Chronobank’s exchange. This exchange allows freelancers to convert Chrono into any other currency they want.

2. CertiK

CertiK has a worker verification feature that ensures the integrity of qualifications and credentials. It leverages blockchain to create a secure and tamper-proof system for storing and verifying qualifications and credentials.

When an employee completes a course or receives a certification, the institution or organization that issued the certification can create a digital certificate on the CertiK blockchain. This digital certificate is then stored in a secure wallet that can be accessed and shared by the employee.

When an employee wants to share their qualifications and credentials with a potential employer, they can simply send the employer a link to their CertiK profile. The employer can then view the employee’s digital certificates and verify their authenticity.

3. Hyland

Hyland provides blockchain-based HR solutions to enable employers to transform employee data and records into digital blockchain content. It creates a secure and tamper-proof system for storing and verifying HR records.

4. Recruit Technologies

Recruit Technologies is a Japanese blockchain-powered recruitment platform that simplifies and secures the recruitment process. It uses blockchain to create a secure and transparent recruitment platform.

Employers use Recruit Technologies to create job postings and manage the recruitment process. Employees can also use Recruit Technologies to find job postings and apply for jobs.

The entire recruitment process is managed on the Recruit Technologies blockchain, which makes it secure and transparent. Both employers and employees can be confident that their data is safe and that the recruitment process is fair.

• SpringRole: SpringRole is a blockchain-based startup that verifies professional identities. It helps recruiters be sure that the candidates they’re interviewing or hiring are who they claim to be. SpringRole also provides resume building and help with job search.
• TrueProfile.io: TrueProfile.io provides blockchain-backed professional documents. This allows international job seekers to provide employers with certified copies of diplomas, certifications, and other professional credentials.
• BlockTribune: BlockTribune is a startup that is offering blockchain-based solutions for journalism and advertising. BlockTribune shares verifiable and tamper-proof news about the blockchain industry, allowing people.

Blockchain has many potential benefits, but many people in the HR industry are reluctant to use it. Here are some of the biggest obstacles blockchain is facing:

• Inadequate awareness and understanding: Many HR professionals are still unfamiliar with blockchain technology and its potential applications in HR. This low awareness and understanding can be a major barrier to adoption.
• Regulatory Uncertainty: The regulatory landscape for blockchain is still evolving, and has faced so many restrictions in recent years. So, this uncertainty can deter some organizations from adopting the technology.
• Cost and complexity: Implementing blockchain solutions can be expensive and complex, especially for small and medium-sized businesses.
• Skills gap: There is a shortage of skilled blockchain developers who deeply understand the HR field. This can make it difficult for organizations to find the expertise they need to implement and manage blockchain solutions.

Future Prospects and Trends of Blockchain in HR

Despite the challenges, the future outlook for blockchain in HR is very promising. As technology continues to develop and mature, it is expected to play an increasingly important role in the HR sector. Some of the key trends to watch include:

• Increased adoption: As the benefits of blockchain become more widely understood, more and more organizations are expected to adopt the technology in HR.
• New and innovative applications With AI: As blockchain technology and AI evolve, we can expect to see new and innovative applications emerge in the HR sector. For example, blockchain combined with AI could be used to create decentralized marketplaces for HR services or to develop new ways to manage employee data and privacy.

Conclusion

Blockchain has the potential to revolutionize the way HR is done. With the help of Blockchain HR process can become more secure, transparent, efficient, and trustworthy.

Also, as blockchain technology continues to develop and there are clearer ethical guidelines for how it should be used, we can expect even more creative and groundbreaking applications in the HR field.