Blockchain in HR and recruitment

The Hummer
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5
min read
Blockchain in HR and recruitment

It’s 2021 already and we still cannot get over blockchain. It’s not even a puzzle to solve or an unknown mystery to unfold. In fact, it’s a saviour that has a crucial role to play in countless domains; Human Resources and recruitment being a few of them. Not like we have achieved a disruption in HR or recruitment with blockchain but there’s still hope, scope and copious potential. The gigantic shift from writing paper to digital notepads, literally in all spheres of life, is more than enough to prove this. Further, and a more concrete proof, is the pioneering of Google Jobs in the US market.

For those of you who don't understand what blockchain in HR is, let's get familiar with what the word blockchain means. It is a huge database of digital records that is stored and managed by many computers. Every time there is a change in any data, these computers confer and make a note of it. Instead of replacing the previous information with the new one, they create a new ‘block’ to store this new information and label the previous information as obsolete. Moreover, since a number of computers are involved there is enough proof that the transaction has happened. Therefore, everything is on record.

Change brought in by blockchain in HR and recruitment

1. More validation in candidate profile screening

There is no doubt in the fact that people lie in their resume. And why not? Because if they don’t then someone else will to get the job. It’s like the famous fish example-You live in a village with 1 other person and the village has a pond populated with fish. If you hold back from excessive fishing thinking that it may harm the environment and disrupt the economy then you are at a loss. Because the other person will step over the line and do it anyway.

Karl Marx had a different opinion around this thought, however that’s not really the point. The point is to overcome the challenging part where recruiters have to segregate genuine resumes from the superficial, fraudulent ones that try to be evasive. Blockchain in Human Resources will bring more validation to the candidate profile screening process because the updated candidate data will already be present in the blocks. Further, HRs will save a significant amount of time in background check as the blocks will already have the educational details, qualification, work experience, skills, hobbies and interests, everything actually.

The blocks will be enough to cross-verify candidate information.So even if a candidate would like to exaggerate and create an outlandish impression, it won’t work because the digital records will remain forever. Having said that, there is still some uncertainty in the technology but there exists a resolution. The Applicant Tracking System (ATS) that peopleHum provides is an exceptionally helpful tool for HRs and recruiters. And who doesn’t want that?

2. Reducing the cost of the payroll process

Employers can actually use blockchain to process cross-border payments and abandon the monthly hassle of processing recurring remuneration. We know how costly exchange rates and other charges can be so it’s most definitely cost-effective if the process is automated and controlled by blockchain in HR and recruitment.This process will remove any third-party involvement and reduce the overall cost. In fact, the process will become more efficient and transparent. The candidates working remotely will be able to view the deductions, if any, and everything will already be on record. Therefore, there wouldn’t be any need to provide proofs and documents separately.

3. Improvising certification, training and performance management

As soon as new candidates get on-board, the next step for the HR is to ensure that they undergo felicitous training. Many organisations make their employees apply for certifications so that they can learn more about the job. Further, performance management is another key area where HRs spend most of their time to conduct fair evaluations. It sounds this cumbersome and time-consuming, no wonder how much time is actually lost in implementing all of it.

In the end, it’s all about managing and recording the progress to assist the candidates better. Blockchain can totally facilitate the process and create indisputable records in no time. Towards the end of year before the performance management cycles, the HRs, team leads and managers can make use of this recorded data to plan just appraisals.

Blockchain, therefore, works wonders

When it comes to confirmation, validation and authentication of values, events and activities. The reason why most of these modifications have been introduced in the first place is because there has been an extreme shift in the scenario that has further transformed the millennial demeanour.

They are hungry and curious because of which they ask too many questions. They are restless and therefore, want quick answers. Moreover, they don’t want to wait for things to happen that’s why they go ahead and make things happen. If they see no results then they have the tendency to move on to the next, bigger and better, project. But is it for the better? Is it going to bring more complications?

Are millennials high maintenance or do we really need blockchain for creating a better recruitment process?

The generation that we call ‘millennials’ today is different from how people of the same age group were a decade back. Like how my mother puts it - people were different before technology took over us with the sorcery of laptops, iPads, iPhones, and whatnot..But my question is, why not? Millennials have always had access to technology while growing up.

Social media is easily accessible that is like the millennial emotional escape. Online shopping and chatting have become a favourite stress buster. Food, Uber, movie tickets, vacation bookings, etc., are only a click away. So, why not make something as crucial as a job opportunity an easy reach that makes them feel like they belong to that organisation? Of course, good things come with time but what’s the harm if good things want to come early on their own?

We do really need blockchain for creating a better recruitment process. Not just for millennials but each and everybody, who wants to make it big in the corporate world. Even if millennials are trying to create a corporate web out of a corporate ladder, no big deal. Technology has gifted us enough power to deal with this fast-paced life. However, because of this we overlook interpersonal development at times. Hence, it becomes all the more important to train the machines to automate our tasks, to tap on the potential of blockchain to automate HR processes.

However, there is still time in order for the technology to get completely established. We know how important automation is and that's the reason why peopleHum is providing that platform to organisations already.This will ensure that we have enough time to connect and provide the mental and emotional support that we all need as humans. If you'd like to have more time for your colleagues and friends at work, try peopleHum. It will help you automate a lot of your tasks -

  1. Scheduling interviews and feedback sessions
  2. Setting goals for achieving targets
  3. Sharing ideas on a large platform for collective discussions and feedback
  4. Conducting effective performance management sessions
  5. Giving credit and appreciation to the hard-working, outperforming teammates, and more

HR has to ensure that they have sufficient details about the candidate to discuss with the internal team. So, they try to gather as much information as possible in order to have a preliminary understanding of the candidate. The 2 very basic features that almost every other organisation focuses and relies on are -

  1. Letter Of Recommendation, and
  2. Background check through references

Letter Of Recommendation

Let me ask you a very simple question. Imagine you are a renowned professor teaching at a highly reputed and esteemed University. You would agree that the students would want you to write an LOR for them, wouldn’t you? Another question for you, since we are talking about a highly reputed University, most of which have an extremely stringent selection criteria, it is a no-brainer that the majority of the students, specially in their final year, would be highly talented, full of potential, all set and geared up for the show out in the real world.

How exactly would you find the time to describe the true spirit of the student on a single sheet of paper within 100 to 150 words? Not to forget that every student of yours would expect a personal touch. Wait, I’ll answer it for you. Yes, it is indeed difficult and considering the rate at which we are speeding towards population boom in our country, it is all the more time-consuming.

Blockchain in HR and recruitment | peopleHum

So what do you do? You create a set, standard template and cut-copy-paste the name of your every student and their respective batch and you’re done. In fact, you won’t even believe but students come up with creative hacks to make the job of the professor faster and easier. There have been cases where the student shares such a good rapport with the professor that they ask the student to write their own LOR so that in the end they can simply put their signatures on the physical copy or an e-signature on a document. Now, how reliable is that?

Background check through references

Conducting a background check is a more professional approach where the candidate comes with a certain amount of prior experience. There is a fairly high chance that if the candidate has worked for 2 or more companies, there would be at least a slight difference in each of those experiences. This is pretty obvious because the candidate would have different reporting managers with different personalities and even more different ways of dealing with situations.

Therefore, the end result might have at least some amount of discrepancy. As much as it is a great way of creating the first and foremost impression of the candidate, organisations cannot stick to someone else’s version of the candidate. But what other, better, way to fasten the process and make it fair for the candidate and seem more legit?

Hence, blockchain in HR.

It comes out as the most reliable means of technology that has the power to remove all discrepancies and maintain consistency. This stand-alone technology is so powerful that each and every data that is entered is transparent, verified and therefore, reliable. The data will be independent and wouldn’t belong to any single company but a single, unified platform. This way -

  1. The platform will become a reputation and personality builder for applicants
  2. Deserving candidates will be able to seek a desirable job faster
  3. Human Resources will save significant amount of time and money in finding the right talent
  4. Companies will have a fair idea about the professionalism and competence of the candidate
  5. The HR team will be able to overcome any form of personal or professional bias to be fair and just

The main objective of HR blockchain is to reduce labour and facilitate the hiring process through automation. However, till the time it remains uncertain we have to look out for better options.

There are many platforms that are achieving new heights in Human Resources and recruitment automation, peopleHum being one of them. It is a global platform that facilitates the recruitment process in any organisation. The platform has been designed to make the jobs and lives of Human Resources and recruiters much easier. Further, the platform gives each and every candidate a fair chance of getting hired. In fact, the peopleHum platform provides an authentic way of prioritising candidate interview scheduling for the Human Resources. It provides a suitable score to the candidate profile for gauging its relevance.

The information will not be encrypted or partially hidden from anyone. It will be open for all so that anyone, anytime, anywhere can refer to the candidate details to spot a desirable hire. This way the world from different time zones will stay and remain connected. Distance will not be a barrier between an opportunity and the candidate. And the data will be transparent to be available on a global channel, and yet remain safe.

We hope you got some great insights from this blog. Its now time to apply it. Get started with peopleHum for free today. No credit card needed.

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