I wrote about blockchain previously and now to examine its impact on various industries and job functions. Human resources is a wide field and there are areas for application of blockchain. Recruitment is one area. A blockchain service is already in the works for resume verification. An alliance between Recruit Technologies and blockchain specialists Ascribe, who currently have a platform for using blockchain in the verification of digital copyright, has been working on this for some time now, and believe it will make it possible to verify common resume details as true, for instance that an applicant really did attend the university they say they did, and attain the qualifications they list.
In the past, references were really the only way to check out some of what was written in a resume, and these days fewer and fewer businesses have time to check these, preferring instead to use easily falsified checks, such as on LinkedIn and other social networks. With blockchain, it would become far easier to take resumes from applicants, including those based in other countries, at face value.
Imagine having all your employment related details associated with your electronic signature in one block :- security access, insurance, payroll, expenses, work performance, employment history, psychometrics etc. The employment contracting process would effectively be redundant. You could work almost immediately, with quick payment. The role of the recruiter will not be needed, but that’s the least of the disruption. This raises questions about the nature of the employment contract and the ‘job’ itself. Most of us will then be in the gig economy, enabled by transparent contract and payment mechanisms.
Beyond recruiting, blockchain has some very interesting possibilities in HR. Some predict that, eventually, staff could have all of their data in one block, including payroll, insurance, expenses, appraisal history, and all other relevant information held and used by HR. With no central database to worry about, it would make it very easy for employees to come on board a company with little contracting effort, and payment would become faster and more flexible too.
Chronobank.io, an Australian short-term work platform, is developing a Blockchain-based financial system for freelancers or contractors to obtain work and pay them in their own “labour-hour” token. They aim to disrupt the HR, finance and recruitment industries with their upcoming platform. I spoke with Sergei Sergienko CEO ChronoBank, who told me “Our goal is to make a difference in the way people find work and get rewarded for their labour, doing it decentralised and without the involvement of traditional financial institutions.” This is potentially transformative, and Sergei’s message to HR leaders was this change will happen, so find out more and work to develop this next wave for your organisation.
One Australian startup is already looking at creating a platform that uses this technology for freelancers, making the process of hiring and paying them far simpler for those who want to engage freelance workers without the associated risks.
There is certainly a lot of work going into trying to bring the benefits of blockchain to the HR sphere, and it will be interesting to see how quickly it is adopted in both the recruitment and HR management arenas in the coming years.