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Blockchain Will Leave A Permanent Imprint on HR

Posted by Jeff Pelliccio on Jul 13, 2018 9:00:00 AM

In ICS insights, hiring trends, Corporate Support

Blockchain technology is expected to have sweeping changes in the business world; and HR workflows and recruiting are likely to see revolutionary innovations.

What is Blockchain?

Blockchain is simply a distributed, decentralized, and public ledger utilized to make a record of transactions that cannot be arbitrarily changed by any one party. It's spread across many computers, which gives the records their immutability. All the subsequent blocks have to share a consensus of the correctness of the data.

How Blockchain Will Revolutionize HR

Businesses can use blockchain's decentralized model to automate and verify data for contracts, data, and currency. This trustworthy system cuts out the middleman (data warehouses, server farms, etc.) to store data. Banks are giving a hard look at the blockchain to securely store financial data, and the HR industry could be disrupted by fast tech changes in this sector.

As HR departments embrace blockchain’s capabilities, the technology will mature until everyone is more comfortable with it and best practices spring up and impact all aspects of HR. Whether its recruiting, onboarding, taxes, or even large scale applications such as payroll, important human resources functions will be forever changed by blockchain applications.

Blockchain Could Make Resumes and LinkedIn Obsolete

This may sound like a bold statement for a time far in the future, but it's closer than you think. Blockchain technology could easily make antiquated resumes, LinkedIn, and other career networks obsolete. Instead of asking an applicant to type out their work history and experience, it can all be stored and made available in the blockchain.

Recruitment Impacts

Companies will have new recruiting tools and can throw aside lengthy verification processes that are now required to validate a candidate’s reported employment history. Instead, recruiters will pull up the public record on blockchain. Resources can be dedicated to calculate and store key performance indicators and keywords of responsibilities to match up job seekers with descriptions of open positions. It will be easy to tell if someone has been promoted in a current position and why they left their previous companies.

Forming a complete picture removes a lot of the bias and guesswork out of the hiring process. It will no longer be necessary or possible to present yourself in a skewed light for each new gig. Instead, Blockchain can document your exact skills and qualifications that my match an employer's needs. On the other hand, transferable skills will be easier to sell, so it might actually be easier to switch careers.

Blockchain can show failures and successes, which create a unique opportunity to explain failures, embrace the learning opportunity and use it to showcase a mature, versatile character. Promotions based on performance can help prevent management selection from becoming a popularity contest and give capable people a chance to advance.

Blockchain Can Automate Taxes and Make Them More Accurate

Taxes for contract workers get very complicated. Estimated taxes and write-offs create a headache that rolls into a migraine during the annual tax season. Contractors have to file quarterly paperwork and track all their expenses in order to claim deductions. Putting all this in blockchain would make it easy to record meals and transportation on business trips without using apps or saving receipts while moving around - an inconvenient and truly unnecessary administrative burden.

For employers, blockchain impacts reimbursements, write-offs and so many other tedious, and otherwise manual tracking and verification processes. Avoiding these wasted man hours and headaches would seem enough incentive for beleaguered HR teams. However, there are many other applications that would simplify the scope and scale of everything HR teams do.

In this case, blockchain has the capability to change people's everyday lives. Imagine going to work one day and having to enter transactions into one system, load and verify them in another only to report them in other places. Instead of this quilt work approach, using blockchain allows HR employees to concentrate on the human element as the resource portion begins to run itself.

How Blockchain Can Streamline Routine Tasks

Everything entered directly into blockchain saves one or more processing steps down the road. Whether its payroll processing or cutting payroll checks, even managing contracts from inception to approval, HR tasks can all be made more efficient in blockchain.

The technology lets businesses receive and send funds immediately via secure data streams around the globe. There isn't really a need for banks to intervene anymore, and both parties can pocket the usual fees associated with international transactions. How exciting would it be to cut out the middlemen that slow down your business and cost you money?

This also applies to contracts. Managing contracts using smart contracts carries out predetermined terms, locking both parties in and guaranteeing that the other side has to live up to their part of the bargain.

It's Time to Disrupt

Too often, even when tech watchdogs mention innovation, what we actually see is a renovation of existing tech. However, blockchain is something completely new and refreshing. It's a rare sea change in the online ocean, and one that brings in a tide of secure transactions and cost savings on an unprecedented level.

Some disruptions are worth the learning curve and process changes that are necessary to implement them. Blockchain as a solution to divested, manually intense HR systems is one of them.

It’s cheaper and more secure than the time-intensive methods it would replace and promises to make lives easier. The technology is ready, the incentive is obvious, and now it's up to decision makers to push them forward for their organizations. Will you be one of those decision makers? Will you push for change?

Click below to start your journey into the future. ICS is here to make things simple and easy so you don't have to worry about anything but the business. Just focus on how you will move your organization forward. 

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