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Blockchain in HR (2 of 2)


Blockchain can be leveraged across the entire HR value chain starting from recruitment and all the way to retirement. Below are some use cases for blockchain in HR:

Recruitment is one of the most important task of an HR department. False information in resumes is one of the biggest problems that recruitment departments face followed by unsuccessful background checks. Blockchain is a distributed, shared digital ledger made up of a chain of verified facts which can’t be tampered. Now in case of HR, these facts can be the educational and professional details of employee. As they are now stored in blockchain, they are impossible to tamper as they are referenced to earlier blocks and are digitally encrypted. Once these details are linked to broader personal and background details of the prospective candidate in government databases, it will become cost effective and highly efficient for HRs to screen candidates and detect fraud.

Other key area in HR which can reap the benefits of blockchain is learning. In its current form, learning management is a sort of rigid process where learning is expected to be limited to educational institutions and professional settings. One reason for this is the hard to quantify nature of informal learning sources. This is where blockchain comes in. Consider a future where utilizing blockchain, an employee can track everything that he learns in a ledger in units called learning blocks. Everything one learns either from other individuals or from online sessions or in social activities can be accounted for in learning blocks and utilizing this information, employers can offer jobs or gigs to these individuals. This can provide for a better way to evaluate candidates and a better match of jobs and skills.

Another HR area for potential disruption is that of payroll. The major activity of Payroll department in any company consists of verifying and processing multitude of payments – both domestic and international payments. This is where bitcoin or its alternative can be of immense help. While domestic payments involve may be a single intermediary, international payments are routed through multiple intermediaries which results in waste of time and resources (read money). Using cryptocurrencies like bitcoin can help avoid intermediaries and result in fast payments. Another potential area of use is in paying the distributed workforce in terms of ICs and SoWs. Smart contracts based on the blockchain construct can be used to pay the additional workforce.  Smart contracts are basically codes to automate execution and settlement. Once the smart contract is executed (based on the condition that work is completed), a settlement (payment) is initiated to the concerned party.  

Employee benefit and rewards consisting of healthcare and wellness benefits and various other form of benefits is an area which is in flux due to various regulatory and compliance issues. In this complex operating environment, blockchain can act as a source of truth as interaction between multiple stakeholders tend to complicate the situation. Blockchain can assist in streamlining the document review process by tracking and time-stamping documents, providing secure document storage and controlling the sharing of documents between different participants.

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