There are many scenarios where blockchain can add real value to HR.
- Talent Acquisition
- Personal Data Security
- Payroll
- Employment contract conditions and benefits
- Audit
- Real-time reporting
- Unstable currencies
- Employee demand
Talent Acquisition
Self-reported career achievements, unverified career records, or credentials in foreign languages might lead to misguided decisions.
How about if we validate those records and store them on a blockchain? Recruiters can receive access to this fully verified “digital identity", which cannot be manipulated. This will improve the quality of the candidates, speed up the screening process, eliminate the need for background and reference checks.
Personal Data Security
But why would candidates agree to store their records of skills, credentials and workplace performance on a blockchain? Because this is a highly secure encrypted solution where the candidates have full control over who can access their data. Using a special crypto password allows the candidate to choose who can view which part of their data.
Payroll
In cases of repetitive transactions such as contractors’ payments, payroll, etc., the conditions can be coded into a blockchain. The program is called a smart contract, and it is executed automatically in real-time.
Employment contract conditions and benefits
Employment contracts might include specific payment conditions or waiting times for certain benefits. Examples could be:
- a) sign-on bonus after the successful completion of the probation period
- b) a certain percentage of salary increase after 1 year of employment
- c) allowances with a validity start date after a specified waiting period
- d) bonus calculation and payout based on predefined KPIs
- e) automated employee record deletion as per the applicable record retention policy
Instead of manually calculating and monitoring these cases, these conditions can be coded on the blockchain via smart contract. Once the condition is met, an automated procedure will be triggered, which will execute the pre-agreed outcome.
Audit
Instead of reviewing many copies of documents, auditors can receive access to the blockchain data and conduct a full audit instead of sampling. Blockchain makes data visible; transactions are traceable, approvals and payments are transparent and easy to reconstruct. As Blockchain is “immutable,” data cannot be overwritten or manipulated.
Real-time reporting
If all people’s data is stored on a blockchain, Headcount and other important metrics will be reconciled automatically without delay or extra effort.
Unstable currencies
High inflation is a concern for many people around the globe. An elegant solution to it could be a salary in cryptocurrency.
Employee demand
More and more employees consider and proactively ask to receve at least a portion of their salary in cryptocurrency. This is also a way how a company can attract professionals with fintech skills.
