The applicability of blockchain technology has evolved exponentially, having already moved beyond cryptocurrencies and the like. With the advent of the blockchain, information exchange is never going to be the same again. It has opened up a giant pool of opportunities with real-time information sharing, collaboration, and cross-border payment transactions. Thus, resulting in significant advancements in the workplace.
The primary reasons behind the massive popularity that blockchain has gained in the recent past are-
Ease of access
The capabilities of blockchain technology are far-reaching and can be further leveraged in sectors like logistics, healthcare, fashion, and more. Immutability and transparency are the prime factors in the widespread popularity of blockchain.
Transactions of all kinds involving the exchange of information, contracts, records, and more are maintained and stored in a public ledger, which is completely anonymous to those who aren’t directly involved. A report from CompTIA found that early adopters have already been utilizing blockchain for-
- Digital identity (51%)
- Asset management and tracking (49%)
- Regulatory compliance/auditing (49%)
- Distributed storage (48%)
- Smart contracts (45%)
- Cryptocurrency/payments (44%).
How Can HR Benefit from the Blockchain Technology?
Since the system is decentralized and distributed, all the information can be accessed from anywhere and at any given time. Such enhanced cybersecurity is also changing how payment transactions are carried out. Thus, there is a potential to help streamline and improve essential functions of HR processes, in an efficient, error-free way.
Acquiring Talent and Onboarding
One of the critical areas where blockchain finds high potential applicability is talent acquisition. Since data stored in blockchain is unalterable, a candidate’s background information including his resume, educational certifications, work experience, salary slips is tamper-proof. With the support of blockchain, the entire process has become entirely paperless. When coupled with machine learning, organizations can filter through validated and qualified resumes, get accurate candidate predictions and fasten the means to search for the perfect candidate.
Transparency in Data Maintenance
Blockchain can use employee data like fingerprints, face and iris recognition to track attendance. Further, a record of expenses and other transactions also gets maintained and can be used to process claims, with enhanced real-time visibility to the HR.
Payroll Processes & Final Settlements
Blockchain also facilitates cross-border payment flexibility, while eliminating errors, third parties, and multiple intermediary banks. Remote employees can also benefit when payroll processing is carried out on a real-time basis. The entire process can be tracked on the distributed ledger system, thus making the system more transparent and robust.
It presents several benefits concerning cost and efficiency for the organization, thereby contributing towards the business outcomes, and even strengthening the role of HR as a business partner. Additionally, it eliminates back office functions and helps realign the focus on core business functions and objectives.