The concept that is now changing the way we live is called Blockchain, the decentralized system and potential applications of which are quite rich, varied, and extensive across a host of functional domains. One such area is HR – the curator of the most precious asset a business possesses i.e. its employees. With blockchain organizations will be able to validate the legitimacy of their employee information, rather than general assets and transactions.
Blockchain has ledgers that contain all the transactions among those in a network. It is a secure, reliable, private way to store data. It also has no centralized authority, making the chances of bias and corruption very slim. While Blockchain will continue to draw attention and application in managing finances and supply chains, HR could be an amazing fit as well – the key difference in HR being that organizations would be validating the authenticity of their employee information, rather than general assets and transactions.
Addressing human resource risks, and possible economic losses
Nothing is more important today for an organisation than to know and understand its employees. With globalization of economies, companies are dealing with unique challenges in the global marketplace. Employees, the essential owner of knowledge, technology, and service, embody the core component of enterprise management. The strategic worth and importance of human resource in the systematic growth of organisations is axiomatic, however, the authenticity of human resource information takes in vital significance in ascertaining cost and efficiency of human resource management.
The unrestrained predominance and usage of internet technologies and mobile devices now pose a threat to information symmetry thus triggering human resource risks, and possible economic losses to business ventures. A scientific and full-proof solution to this is Blockchain — by combining the conventional encryption technology with distributed internet technology it can establish an HR information management model that negates the risk regarding the genuineness of human resource information.
Possible usages of blockchain
Authenticating and gauging the education, skills and performance of potential recruits – helping them get the most appropriate job roles
Ensuring an all-inclusive, reliable blockchain-based record of education, skills, training and workplace performance of employees
Supervising cross-border payments and employee mobility, including international expenses and tax liabilities, also having the prospect for organisations to create corporate currencies
Enhancing productivity, for instance, by automating and reducing the load of routine, data-heavy methods like VAT administration and payroll
Improving fraud prevention and cyber-security in HR
Human resource documentation
The Blockchain model can be used to certify the human resource documentation. For all validations, such as the duration spent on a project for an external client, nature of work performed, and client awards and citations, the necessary information could be sought from the distributed HR ledgers from various organizations via the central Blockchain administrator. Consequently, the internal recruiter can simply access the Blockchain and either look-up the profile by searching for a few keywords or going through the profile saved on the blocks. These blocks would hold various pieces of information from previous projects, client citations, employee competencies, and project citations. This lends veracity to the candidate’s CV.
This Blockchain-based model can also provide effective decision support information to the human resource management of an organization. This operating model driven by Blockchain could be used to certify the human resource documentation as well as to bind the information and the documentation. What’s more, the HR information could be recorded in an HR Ledger (call it a specialized HR Accounting book) based on Blockchain technology – any modification may then be difficult in the entire network since that would require a validation from each certifier. In case of employees, the certifiers could range from Universities and Employers to Certification bodies and Security agencies.
Startup using in HR
In this space, Noble House is making the entire continuum of finding work and hiring independent consultants more approachable and lucrative for freelancers and businesses, respectively. The venture is transforming how HR works – thus aligning itself with the idea of a “gig economy” very well. The platform boasts of over 400 quality experts across India and Asia for skills like business transformation, HR technology, talent acquisition, employee assessment, compensation and rewards, and more. Noble House goes by the motto Good Work, Good Life. It helps independent consultants find good work so that they can deliver their best to the clients. With over 20 skill categories, consultants can choose what is best suited for them. Organizations, in turn, get access to the large database of best professionals for their innumerable HR needs and Noble House’s Intelligent Algorithm helps in matching them with suitable candidates as per the requirement.