Some people in HR find Blockchain and the technology that comes with it a bit of a mystery – others feel like it’s a gift sent from the heavens themselves. Whichever way you view it, there’s no denying that the technology is gaining good headway in the industry. So much so, that it’s predicted the use of Blockchain will produce over $3 trillion in business value in just under 10 years!
No matter what side of the fence you lie on, it can be good to see how this interesting technology is affecting – and will affect – the world of HR. Here’s a quick look at how Blockchain is being used in the industry.
Some of the most effective uses of Blockchain Technology
Many HR teams are tasked with protecting some of the most highly sensitive data for a business such as employee data, healthcare and financial information, disciplinary records, banking information, performance records and more. On top of this, they are also in charge of one of the highest volume financial transactions in any business – employee wages.
All of this data can be vulnerable to hackers or data theft from within the business. This data could then be used for nefarious means and exploitation if there was a breach. It’s because of this threat that various careful precautions must be put in place – almost like digital barriers against fraud. Thankfully, Blockchain Technology is now being held as one of the best solutions in combating cybercrime.
This Blockchain Tech can help aid in preventing not just external fraud, but internal fraud as well. Blockchain enables records and data to be controlled and restricted – even the people who have access to the data can be restricted from making any arbitrary changes. This is a huge development in not just fighting external hackers, but any staff of the business who would seek to use the data contained.
Blockchain is already being used in many online stores and other websites to make payments. For example, on the best betting sites, you can use it to deposit and withdraw money.
Recruitment can be one of the most resource-intensive and time-consuming processes any HR department does. This can even get so intensive that companies will actually hire external agencies or even costly recruiters to help save some time. The huge costs associated with hiring staff from agencies and recruiters can really start to chip into running costs – so much so that it can start to become counterproductive for the business.
Some candidate information is already present in the blockchain itself – quite a big chunk of the process has already been automated using this technology. Blockchain has integrated itself quite firmly into the recruitment process, eliminating many of the security concerns that can come with having sensitive data like CV’s stored on file.
These records are simply verified and then locked up safe and sound – allowing businesses to eliminate the third parties and many of the back-end processes. This evolution could spell the end of costly recruitment and is causing the recruitment industry to adapt to its power.
Better Payroll Management
Whilst this stage is still in its relevant infancy, the rise of Blockchain-backed currencies – such as Bitcoin and Ethereum – has started to integrate itself into businesses. This is especially prevalent with large, multinational businesses.
These huge enterprises can often be stung with currency conversions that take place with poor payroll management, as well as supply chain management problems with different currencies. Some sort of crypto coin or currency, backed by the blockchain, could solve a lot of these problems.
These types of transactions are universal and incredibly secure. The encryption that takes place is nigh on unbreachable and every transaction is recorded. This makes auditing and reporting these payments a breeze.
The only pothole in the full-blown integration of using blockchain-powered currencies is central banking institutions still debating how to integrate this type of payment into mass populations. But this is only a matter of time – some countries have actually started using Blockchain-enabled currencies in mainstream commerce!
Blockchain-powered smart contracts
Smart contracts are enabled by Blockchain technology and allow for enforceable responsibilities and immutable rights for every party involved in the agreement. These contracts will allow HR divisions to immediately release any funds held in escrow once certain employees have done certain duties. This would reduce employee dissatisfaction and solve many cash flow problems for businesses.
Improved compliance and regulations
Finally, This new technology will help HR teams keep up with many of the strict regulations governments impose when it comes to employee rights. One of those is the right to be forgotten imposed by the General Data Protection Regulation or GDPR.
The blockchain will give HR departments a huge amount of power in guaranteeing that workers have full control over their personal information and making sure any information the business has stored about them is unobtainable by breaches. This will save time and allow these departments to focus their attention on other, revenue-generating activities.
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