Blockchain Technology in HR

Blockchain Technology, Bitcoin

Deploying Blockchain Technology in HR

Blockchain is the technology behind highly vaunted crypto currencies like Bitcoin. This is a technology that involves a transaction written in a public ledger which is overseen by a series of witnesses rather than a broker. Blockchain technology can be applied to other items like public documents or even land titles.

The 4 properties that make Blockchain an unbreakable way of doing things are:

  • PUBLIC – The transactions are visible to everyone, meaning changes are readily witnessed
  • LEDGER – Records are small and recorded over time rather than done in one large file.
  • DISTRIBUTED – Visible over a large network of computers and is generated in a decentralised manner such that breakdown of one computer or a segment of the network does not compromise the records.
  • IMMUTABLE – It is not possible to change or alter the information which makes it highly trustworthy.

Applying blockchain to HR

Document and information fraud is commonly seen in HR in different forms including altered and forged documents and false fabrication of documents like past employer recommendations. Common mistakes can occur too like mistranslation of foreign documents, misrepresentation of original context.

The concept of applying blockchain technology to HR has been explored by different HR experts. Unlike before when authentication of paperwork in HR like official certificates and contracts has been done by paper, blockchain would allow for the creation of an authentication database. This would reduce the time involved for both the employer and the recruit. The employer would be confident of the documents provided and have no need for further verification. The recruit would not have to seek several clearances repeatedly making searching for a job faster.
This could be done by encouraging data mining among different institutions. The certificates would be recorded in a blockchain and a certificate of authenticity is then issued with the use of digital signatures.
The deployment of blockchain technology has numerous advantages for HR departments. The time to fill positions is greatly reduced with persons that have known and proven qualities. The costs involved in multiple verifications are especially significant in the current scenario where job tenures run an average of 3 years. A HR department would be saved this headache by doing a single verification. The HR department can also make financial decisions quickly as the potential recruit is a known and proven quantity.
Deploying blockchain technology in HR may become standard practice in a few years.

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Brad Nelson