Blockchain is a decentralized distributed ledger that can optimize security, efficiency, and more of a business. Its high-profile potential has been recognized and utilized by businesses across industries.
Although in most cases Blockchain is utilized in cryptocurrency-related cases it is capable of bringing a breath of fresh air into other business activities as well. For example, Human Resources (HR) is an area where Blockchain can prove to be a vital aspect. In a recent survey, it has been observed that 12% of the surveyed HR and technology geniuses are utilizing Blockchain-based systems.
Improved Security- Among all the benefits of Blockchain technology in HR, the most important one is its capability to protect valuable information. Storing the valuable information of a business on the Blockchain utilizing a decentralized system makes it nearly impossible for cybercriminals to tamper with or hack the data.Optimized Efficiency- Automation of many HR activities and processes can be achieved by utilizing Blockchain technology. It will help not only in minimizing the chances of man-made errors but also optimize the overall efficiency of the business by limiting human efforts.Better Transparency- Blockchain can enhance the transparency and accountability of HR operations. All the implemented changes and transactions made to the Blockchain network are recorded and can be tracked, which makes it very easy to mark out and fix faults and discrepancies.Cost-Effectiveness- The orthodox or traditional HR processes are not only time-consuming but also require weighty costs. With Blockchain implemented in HR practices automation can be achieved and that can cut costs significantly.
Enhancing Recruitment Process- Recruitment can be a long and time-taking process and that is why several businesses opt for third-party hiring agencies to recruit new employees. But this decision often proves to be costly. Meanwhile, Blockchain technology can solve this problem by enabling recruiters to authenticate applicants’ information within a very short period of time and budget compared to traditional verification.Monitoring Employee Performance- An organization can easily track and monitor the performance of its employees by utilizing Blockchain technology. It will help them understand which particular areas they need to train the employees in.Facilitating Feedback- At workplaces employees often fear losing their jobs if they complain about the issues they are facing. These instances can reduce the productivity of those suffering employees by huge margins. To ensure a healthy work environment Blockchain can be utilized to facilitate safe and anonymous feedback from employees. It will help the workforce share their viewpoint.Employee Benefits Management- Manually managing employee benefits can take lots of resources and time. But utilizing Blockchain technology can help a business implement automation in employee benefits management operations.Maintaining Productivity- Blockchain can help an organization track and evaluate the performance and skills of its workforce. By evaluating the skills and performance an organization can decide on the training programs to be provided to the staff.Ensuring Compliance- For a business organization it is highly important to stay compliant with all the labor laws and regulations. Blockchain can help a company ensure they are on the bright side as a system based on this innovative technology can be utilized to trace and detect the laws associated with working hours, fair wages, and more.
Integrating- When an organization opts for Blockchain in HR activities the first challenge they are likely to face is integrating the new-age technology-based system with the already placed HR systems. This integration process can give a company a tough time as this can be extremely time-consuming as well as complex.Cost- The implementation of Blockchain technology is a costly affair, although enterprises can afford it easily many startups and even mid-size organizations can find it tough. As the companies opting for Blockchain-based systems may even need to set up new IT infrastructures, it can really hamper the financial stability of startups and mid-sized firms.Scalability- As compared to traditional centralized systems Blockchain technology can be slower or even less scalable. Due to this, companies with a huge workforce or regularly dealing with a massive amount of transactions can face several difficulties.Privacy Issues- Blockchain technology may be considered the safest and hack-proof but there are necessary privacy and security-related issues an organization needs to address.Legal Trouble- Although the popularity of Blockchain is sky-rocketing there is not very much clarity about the regulations on utilizing Blockchain in HR. This can pose multiple legal problems for organizations.Complexity- As Blockchain is still new many employees can find it difficult to learn. If an organization has a huge number of non-technical employees it can be a nightmarish situation for them while implementing Blockchain technology in HR.
Blockchain in HR can bring an array of benefits to businesses regardless of the industries they belong to. The exciting new-age technology can be used in so many different ways. But to utilize this cutting-edge technology one has to be ready to deal with the challenges as well.
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