Blockchain technology is also known as distributed ledger technology. Changing or hacking data stored in a blockchain is impossible. A ledger documents all the changes happening in real-time. It helps in making the process transparent and accessible to all. In simple words, blockchain is a decentralized database. Different blocks containing data are linked together. These links are formed in the form of chains. It is shared among all the computers which are a part of that network.
Some of the characteristics of blockchain are:
- Immutability: This characteristic of blockchain makes sure that the contents are not changed once recorded. A transaction can only be added once it is approved or signed by all the other nodes on the network. If the majority allows the transaction, then it is added. The transaction is added with a timestamp and is recorded in the ledger. If anyone tries to make a change, that is also recorded and everyone is notified.
- Decentralized: It is not stored at a server or one single node/device. Blockchain can be seen by everyone on the network. Everyone has access to their own records. No single person makes the rules. Instead, consensus methodology is used for blockchain.
- Security: Blockchain offers better security than other systems. For the data to be altered or stored, every node needs to approve it. Which makes it difficult for anyone to tamper with it. As a result, information stored on the blockchain stays safe and secure.
- Integrity: There is only one ledger for a blockchain. It can be seen by anyone who is a part of the network. The ledger stores all the transactions and information regarding transactions. It is easier for everyone to see that owns what. As well as, who made what changes and at what time. Nothing can go unnoticed.
According to Singapore’s Business Director of Hays, Grant Torrens, “Blockchain’s implications for the finance industry are well-known, but the potential to use the technology in the world of work is huge and it will soon transform HR and recruitment.”
Technology experts say that Blockchain is the future of technology. This is all because of its numerous advantages. It is beneficial for both, companies as well as for individuals. As it helps in the safekeeping of records as well as financial transactions. Nowadays, companies can be seen shifting to blockchain technology. The use of blockchain is not just limited to IT firms. Blockchain technology aids in numerous sectors of businesses. From hospitals to schools and from small businesses to multinational organizations. Blockchain-based solutions can provide ease to each and every one.
According to some predictions, by 2030, $3.1 trillion will be created by blockchains in business value. Blockchain technology can come in very handy for the human resource department. As the human resource department have to manage the data of numerous employees, blockchain-based solutions can make this easier for them. A report of CompTIA from November 2017 reported that companies that have already adopted blockchain-based solutions have been using it for various HR functions.
- 51% of those companies are using blockchains for digital identity
- 49% of those companies are using blockchains for asset management and tracking
- 49% of those companies are using blockchains for auditing
- 48% of those companies are using blockchains for distributed storage
- 44% of those companies are using blockchains for payments
- 45% of those companies are using blockchains for smart contract
Blockchain technology can help the human resource department on many fronts.
Talent Hunt & Recruitment: The biggest struggle of the human resource department is to find the right person for the job. They have to go through a number of CVs to find the right fit. Some companies hire agents and third parties to find them the right candidate for the post. A huge amount of money is spent on talent hunt and recruitment processes. Blockchain makes it easier to find the right person. Applicants can allow the company to access his records on the block chain. In this way, the HR of that company can directly access the records of applicants. It makes it easier to check the candidate’s education, work history, skills, and other information.
Background Checks & Employment History: Using blockchain will he running background checks and checking employment history easier. First and foremost, there will be no paperwork. As the applicants give access to HR, they can view all the required information on the blockchain. It will also ensure that no candidate is adding false information. According to a survey conducted by CareerBuilder, 75% of HR managers have caught a lie on a resume. With blockchain, there will be no such issue as the information will be added by credible sources.
Managing Financial Transactions: Doing financial transactions is a very crucial task. They have to be on time as third-parties are involved. It is a difficult and long task. Especially if transactions have to be made overseas. With all the bank runs and currency changes, etc. Blockchain technology has made this absolutely easier. Blockchain will carry out the transaction itself with no need for intermediary banks. The currency will also be changed automatically by the blockchain. As a result, transactions will be easy, timely, accurate, and cost-effective.
Managing Payroll Systems: Managing payroll systems is one of the most time taking job. It is a never-ending task for the HR department. Shifting the payroll system to blockchains will make it very easy to manage. Smart contracts will be made. By the time the employee completes their designated tasks or complete their working hours, the money will be transferred to them automatically. As all the information regarding payments will be added to the block chain, the task will be automated and it will save time. Bank transactions will be carried out by the blockchain itself.
Securing Data: Saving data and information on blockchain helps keep it secure. Due to the security model adopted by block chain, cybersecurity attacks can be prevented. Information is safe from hackers and intruders. As blockchain makes all the processes transparent, any fraud, either internal or external can be caught within no time.
Increased Productivity: As most of the tedious and lethargic tasks will be automated. Employees of the human resource department will be more productive in the work that they do. There will be less paperwork for employees on many fronts. Moving to a blockchain is also very cost-effective as most of the data will be on the blockchain.
Hence, moving to blockchain-based solutions will increase the productivity of the team and will be cost-effective.