Blockchain in HR: What you need to know

Blockchain In HR
 The 21st century has never failed to surprise us with some of the mind-blowing technologies that have a huge impact on our lifestyle.

Some are still exploring the world but already gain popularity, and Blockchain is one of them.

From Banks to Education, Blockchain is everywhere, and the HR industry is already started experimenting, but the problem is everyone in this sector is thinking it is limited to background verification only.

The fact is Blockchain not only verifies the background of employees’ but also has impacts on other areas, and most importantly, it comes with privacy concerns.

Here are some facts about Blockchain you need to know

Candidates will have control over their resume

Gone are those days when candidates were coming with one resume with their all achievements, and there is a debatable topic whether they should use a single resume or customize one for each job.

But for Blockchain in hr, it is not the same as before because candidates will have control over it even after submitting their resumes.

Firstly, candidates no longer require a customized resume because they can update their information with real-time data via a blockchain-based cryptographic profile.

Whenever they join a company or learn a new skill or work in a project, their profile is updated, and there’s no need to worry about what to include and what not as everything will be there.

In short, candidates will have control, but can’t tamper with their data.

Blockchain makes it easy for all HR processes

HR professionals are occupied with many responsibilities which are increasing day by day and is becoming daunting.

From dealing with job seekers to vendors, payrolls, client relationships; everything they need to manage smoothly, but things become difficult because of the laws and processes that need to be followed.

Verifying every record and data is difficult for HR professionals, and here blockchain will act as a rescuer due to its accuracy and simplicity and no need for cross-verification.

Tracking attendance and expenses with blockchain

Managing employees, office expenses, attendance often cause disputes between payroll and HR department due to the lack of accuracy to some extent.

Biometric information can solve some problems, but again it’s not secure and manipulation is possible. We saw Apple’s face recognition is not secure and Blck Hat hackers proved it in their Los Vegas convention. Biometric data are secure in the system, but once stolen, anyone can tamper the data as per his/her wishes.

ID2020, a non-profit project is using Blockchain to store biometric data and is creating a digital identity for record-keeping purposes, and due to decentralized nature, manipulation is not possible.

HR professionals can use this technology to safely store the data and can track everything accurately that could remove the miscommunication between payroll and HR department.

Data Privacy Concern of blockchain

The entire recruitment system is now moving towards technologies to make it efficient, however, it comes with some disadvantages too. Even though Blockchain is secure but at the same time, recruiters will have access to the entire data of an employee that raises questions regarding data privacy.

Whether it’s the Cambridge Analytica scandal or Yahoo Data Breach, many countries are imposing strict regulations to protect users’ privacy which is against Blockchain’s basic principle.

Such privacy laws make it difficult for recruiters to store and use data even though it assures security. The problem is Blockchain breaks all data and distributes it across a network of computers where each one will have a copy to protect in case of hacking or data loss.

This will enhance security and makes it impossible for hackers to hack as every change require multiple confirmations from the entire network.

And here, users need to make their data public in a decentralized network to prevent them from manipulation that ultimately comes against the basic principle of data privacy.

Here, companies need to be careful about such laws before using these technologies.

It still raises many questions

Even though it offers great benefits in recruitment, there are many questions arise regarding privacy and managing lower-level employees.

For fresher, Blockchain will play a major role, but there is no proper solution for already working professionals and those who are in lower-level jobs as they are less likely to have accurate job history.

How this will ensure that all employees are treated fairly and how can it act as a bias-free technology in the recruitment sector?

Well, everything has some pros and cons, but that doesn’t mean we should not use technologies, and we are talking about Blockchain that creates a challenge for hackers due to the unbreakable security features.

Of course, it’s new, and all these questions can be answered as we continue the experiment, but for now, we should appreciate what it is.

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