In the search for faster, more reliable HR services, many businesses are turning to blockchain technology for solutions. What is blockchain and how can it help your human resource recruiters? Keep reading to learn more.
What Is Blockchain?
Blockchain, as most people understand it today, is the foundational technology behind the cryptocurrency movement. Blockchain is a ledger system that stores information. It was invented in 2008 by Satoshi Nakamoto, the name used by the creator of bitcoin. Satoshi invented blockchain as a means to prevent the double-spending problem with online digital currency, and create more financial transparency.
Data is stored in blocks using cryptography code. Each block of information is timestamped and permanent. Information stored on the blockchain cannot be altered, which makes it reliable and verifiable. The most common type of data stored on blockchain are transactions between individuals. Transactions like the ones made in cryptocurrency are monetary exchanges between two parties. Anyone using the blockchain can view and verify these transactions because it is an open ledger.
As intended, blockchain reduces the number of hands involved in the transfer of information. When you want to send money to your friend on the other side of the country, you have to go through your bank or a third-party money service. This complicates things and increases the potential for fraud and identity theft. By eliminating the middleman, blockchain allows for faster exchanges between individuals, whether itâ€™s currency or information.
Blockchain and Human Resources
When it comes to human resources and employment, blockchain has far-reaching implications. As a human resource manager, youâ€™re responsible for verifying the employment and academic credentials for all of your prospective employees. The process of verifying the information presented on a rÃ©sumÃ© can be time-consuming and frustrating. Hours are wasted tracking down past employers, professional references, and academic certificates.
However, a public ledger of employment and academic achievements can greatly reduce the time spent on researching potential employees. When you find the information you need, you can be certain that the information is correct because the record is permanent as well as tamper-proof. Imagine the money and time your company can save on information gathering with blockchain technology.
Development and Implementation
However, like the creation of the internet, the development stages are the hardest to get through. In the beginning, the internet had limited uses as well as a limited number of users. Only with the passage of time did the internet become the information superhighway it is today. As it increased in scale, it also increased in value.
Right now, blockchain is being implemented in a handful of colleges and hospitals, but it is useless until the scale increases and more businesses adopt the practice. Right now, several companies are working on blockchain solutions for the HR industry, but, as with the internet, there are several stages to implementation. Most of these companies are working on small solutions like rÃ©sumÃ© and identification verification.
It may be some time before there is a seamless integration between human resources recruiting agencies, academia, and employees, but, at the rate technology is growing, it could be sooner than you think. Keep up on the latest developments in the HR industry with The Christopher Group.