The use of blockchain technology is impressive and expanding to every sector of an organization. It is ingraining itself as one of the human resource technologies in recent years. It can change the way HR leaders and professionals handle sensitive employee data and other HR processes.
Blockchain technology can disrupt the HR workflows like recruiting, tapping top talent from the pool, onboarding, maintaining data, managing payrolls, and handling financial transactions. It can also simplify hiring and operating functionalities at the global level through cross-border payments and automation of real-time exchange rates.
Get to know how blockchain can be one of the best hr tech trends here. Blockchain capabilities like decentralized network, encryption, immutability, tokenization, and distribution promotes the HR industry to manage sensitive data.
Blockchain in the HR industry
HR departments are pressing ahead to make processes efficient and productive by imbibing technologies at every level.
Technology in HR departments enables HR leaders to reshape the way they work. According to 2019, HCM Trends report from The HR Federation, the global HR technology venture capital topped $3.1 billion this year. Though there is a range of interesting technologies like Artificial Intelligence, Big Data, Automation, this content piece throws light on the blockchain.
Blockchain, the groundbreaking HR technology solutions fundamentally touch the HR processes as follows.
Blockchain can store all of the employment histories. The applicants need not write a description or resume for their prospective employers. This would change the way of recruitment procedure itself. The HR offices may no longer have to follow a lengthy verification or call references. The HR recruiters can easily pull up the details of the prospective employee(s) by using a public blockchain. Further, blockchain can also store employee performance and the reason for leaving a company.
HR professionals can pick the right talent, provide access to the information and resources they need without phone calls, emails, or stacks of paper.
Streamline routine tasks
Routine HR tasks like payroll system, paychecks issuance, contract management, tax management for gig employees can become more efficient. Blockchain ensures accurate records, improve the accuracy of time and attendance data. Organizations can send and receive funds instantly without corresponding fees. Paying in standard fiat currency or cryptocurrency is also a possibility.
A smart contract creates immutable rights and obligations for the participants. Thus, it carries predetermined terms automatically and efficiently. It is cost-effective and time-saving than the prevailing people-intensive methods. HR systems backed by blockchain can attract global businesses and employees on the desk.
HR leaders deal with sensitive personal and financial data as well. They store and receive data regarding pay, health insurance, finance and banking, disciplinary records, and more. These data are precious for a company to earn the trust of the employees and clients as well. With blockchain, the ability of hackers to gain access to sensitive data gets highly reduced or eliminated. The records are shared as necessary through verified permission alone.
The records available on the blockchain are decentralized and the hackers find it difficult to hack all the systems even though they might succeed in getting access to one or two nodes. Moreover, any changes made are authorized and verified. So, hackers fail to corrupt data.
Compliance and regulations
EU’s General Data Protection Regulation (GDPR) allows employees to enforce their ‘right to be forgotten’. They can delete the encryption key and make the personally identifiable information unrecoverable. These and new stringent laws help HR to use blockchain and ensure employees have control over their data.
To conclude, any company processes need to promote transparency and trust. These two are priorities for HR professionals and blockchain technology and its ability seems to be more promising for them to handle.