The Future of Hiring - How Blockchain is Changing the Recruitment Process

Blockchain technology is one of the latest trends. While it was initially launched around the 90s, it began to gain mainstream recognition only recently via its association with cryptocurrencies. Digital money is one of the most fashionable assets you can own as a trader. While many detractors claim that it is too volatile to be considered a reliable holding, others praise its store of value capabilities, as well as its usage versatility. There are many researchers who are confident that crypto is bound to change the world and that society isn’t all that far from a future in which cyber coins are just as commonplace as their fiat counterparts.

Until that becomes a reality, however, there are a few use cases that are more readily available. One of them is the use of blockchain in recruitment and HR. It might sound a bit odd. After all, there seems to be no apparent connection. Let’s delve into it a little further.

What is blockchain?

First, let’s get the most important question out of the way. What exactly is blockchain technology? How does it work? In essence, the blockchain is a distributed, decentralized ledger that protects the integrity and validity of the submitted data. Once something is on the blockchain, it stays there forever. It cannot be deleted or altered in any way, which is why you need to be extra cautious when performing any action on the blockchain. Suppose you want to learn how to buy ETH. One of the first things you need to consider is the Ethereum price. Given the fluctuations, you must also be aware of the precise values to find the best way to buy Ethereum. You’ll also need to figure out how the blockchain works precisely so that your Ethereum transactions are safe. If you make a mistake, you typically can’t take it back. So should you send Ether to the wrong account, you can only get it back if the recipient decides to return it of their own accord.

One of the most significant advantages of the blockchain is that it is censorship-resistant and doesn’t require the assistance of third-party users or intermediaries. These protective and relatively democratic properties have made it highly sought after in the context of digital currency trading. People who are struggling to have access to financial services, or had their bank accounts suspended or blocked, such as journalists or political dissidents, can turn to crypto. Since digital money isn’t tied to any central authority, including banks or government agencies, crypto accounts can’t be frozen on demand.

However, there are various contexts where crypto can be used, apart from cryptocurrencies.

Blockchain in recruitment

One of the areas in which blockchain tech is revolutionizing processes is the recruitment process. While the technology is not yet implemented at a broad scale, it’s incredibly promising and comes with several advantages. Firstly, companies could benefit from the increased security the decentralized ledger provides. Data cannot be compromised in a decentralized system, as nobody has chief rights over it in order to modify or delete it. When you’re looking at potential applicants, you’re reviewing essential data such as academic credentials or previous employment background. There’s a certain degree of risk that these could be lost or entirely deleted by accident. Even the most minor details can make a huge difference in whether someone is hired or not.

The blockchain also helps maintain the integrity of the entire body of data as it is transferred between hiring agencies and employers. Job candidates can share their details directly without the concern that information can be tampered with upon verification. There’s also the additional problem of information veracity. The creation of dubious institutions such as diploma mills and the advent of online resources that can make fake credentials appear as official references have made it so resumes can’t be taken at face value any longer and instead have to be thoroughly checked.

Blockchain can help detect fraudulent attempts and keeps all documents in order, so if there’s ever any cause for concern regarding someone’s references, you can quickly go back and check. Estimates show that roughly 75% of resumes contain exaggerations or even legitimate mistruths. When blockchain technology is implemented in businesses, recruiters can rest assured that they’re making better decisions and choosing the right people for the job.

Streamlining processes

Apart from the increased security and the diminished capacity to cheat the system and commit credentials fraud, one of the best parts of the blockchain is that it streamlines processes and makes the process easier to manage. This isn’t surprising, as tech developments have a penchant for making work overall more efficient. Using the blockchain means that the data you see is trustworthy. For instance, if you notice an employee previously worked for a particular company, you don’t have to contact the previous employers to ensure accuracy. The same is true about verifying education bona fides.

If there’s a particular licensing required upon hire, the decentralized ledger acts as an authenticator, validating the chain of authority and showing that the certification is genuine. This process means that employees can start their job in a matter of days instead of the weeks it currently takes to verify documents.

Payroll management

It’s becoming increasingly challenging to manage payrolls efficiently, given the highly distributed nature of the workforce at the moment. The result is delayed payment processing, as well as often unstable exchange rates. These aspects contribute to employee dissatisfaction and can be harmful to the company’s reputation in the long run.

Blockchain technology can help speed up the processes, especially if HR professionals designate their own internal cryptocurrency through which to carry out transactions. You also avoid cross-border payrolls and ensure payments are received in real-time. Given the fact crypto can easily be converted into fiat money, there’s also no concern that anything could be lost. While not directly a part of the recruitment process, this aspect is part of a business’s good reputation, which in turn attracts employees that are more willing to work diligently and bring something new to the company.

Using blockchain technology in recruitment offers many advantages. As the world progresses towards higher acceptance of this new tech development, it’s all the more likely that a growing number of companies will use it.

Cryptocurrency