Needs evolve as do corporate demands. For that reason, it’s reasonable to assume that new technologies will start to enhance the way that human resources perform and operate in the years to come. One of the most exciting developments in recent years is blockchain, a digital ledger which many people will know makes possible cryptocurrencies such as bitcoin.
Blockchain is, by way of the simplest definition, a digital framework. It allows different parties in a contract or agreement to lay down and to agree to rules which receive full backing from hard evidence. Blockchain is not only great for establishing what took place during negotiations, but who has said what, and to whom.
Therefore, what can we expect from blockchain and the world of HR? How could this technology help to enhance the way that HR professionals carry out their day to day work? Here are a few ideas already taking shape in the industry right now.
It's clear that blockchain will be an incredible aid to privacy. It is already helping bitcoin traders maintain a private profile in terms of the currency they buy and sell online. When it comes to HR, data and privacy have never been more important.
Therefore, HR professionals will be able to assure participants that their data is secure to an absolute degree. To an extent, blockchain can also help to encrypt and anonymise data, which means that it will be easier for HR teams to assure their clients that their information is under close protection.
HR is at high risk of fraud and data theft. Alongside the security benefits listed above, blockchain will also be able to support people in terms of fraud protection and prevention. Data written onto a digital ledger will ensure that it is impervious to counterfeiting and copying. What’s more, it will protect users from the chances of losing data altogether.
Automation and productivity
Blockchain can help to automate processes. For example, it will be easier for HR professionals to delegate certain administrative tasks and concerns through a digital ledger than to attend to all matters by hand.
Therefore, cutting down on time spent in terms of admin and processing will mean that productivity and efficiency will be enhanced. This, of course, is always beneficial in any line of work.
Automation is rife in blockchain, as well as in the trading of cryptocurrencies. Outside of HR, for example, any budding traders simply need to check out a list of crypto trading robots. These help them to make decisions on the crypto markets without letting personal emotion or psychology get in the way.
Clearer background checks
One of the most important tasks HR professionals need to perform is, of course, employee onboarding. One of the main hurdles to traverse in this regard is running background checks. Major companies and public services will always need to ensure that they are hiring trustworthy professionals.
Therefore, blockchain can assist by recording clear, concise and confirmed background checks. Through a blockchain network, HR professionals will be able to clearly see what a person has done, where they have trained and their qualifications. These details will be clear for all to see not only in the here and now, but also in the future.
Recently, it was found that almost two-thirds of job applicants are lying on their CVs. Blockchain could help to weed out the more cavalier applicants from the genuine professionals!
A key benefit to blockchain technology in the world of HR is the smarter contracts they can help to put in place. It is easier for parties to record who has agreed to what in terms of contracts and negotiations, as this data will be clearly recorded in a digital ledger.
This means that parties that need to complete tasks or adhere to specific rules will be easy to monitor based on blockchain details. It’s greater protection all around, as it also means that those entering into contracts with firms and businesses can see what agreements came into effect, with whom, and when.
Will blockchain change HR in the short term?
There is still a lot of shakiness surrounding blockchain in the UK. This increases with the fact that the law remains somewhat unclear on how we should treat cryptocurrencies such as bitcoin. However, it’s clear that human resources will stand to benefit immediately from bringing blockchain into everyday business.
Will this occur sooner, or later? We will have to wait and see. In the meantime, it’s clear that businesses and HR departments are pressing ahead to make things as efficient and as productive as possible.