Blockchain technology and cryptocurrencies have taken the world by storm. And even though the blockchain sector is still fighting some stereotypes and popular myths , many companies are starting to incorporate the technology into their business models.
Human resource departments are also starting to consider the use of blockchain to streamline arduous traditional processes. This article looks at how HR management teams stand to benefit from emerging cryptocurrency and blockchain solutions.
Blockchain Technology for HR Management
The following is a breakdown of how blockchain technology can be used in the HR sector to make management easier.
- Record Keeping is Simplified
Blockchain technology has the capacity to simplify record keeping. This is because it utilizes encrypted data blocks to store information. As such, blockchain technology can be used to store employee records. Utilizing blockchain also makes it possible for HR managers to implement peer-reviewed verification processes that involve external parties.
Information stored on the blockchain can include employee performance, attendance data, the job group, and corresponding payroll data.
The main benefit of storing this information on the blockchain is to enhance transparency while ensuring data security.
2. Recruitment Made Easy
Blockchain technology has the potential to change the way recruitment processes are undertaken by making resume and CV submissions obsolete.
Job seekers could, for example, post their credentials on the blockchain to broadcast relevant work experience and qualifications. Further confirmations by past employers and learning institutions would help to further authenticate listed skills and work experience.
Such a system would alleviate incidences of fudged job applications because data verification would be easy. Less time would also be spent validating accomplishments.
The primary use of blockchain to catalog relevant courses and skills and would also enhance candidate matching and help employers find candidates with relevant experience quickly.
3. The Use of Smart Contracts
Smart contracts are applications that run on the blockchain. They are triggered once a set of predetermined conditions are met. Smart contracts automate the execution of numerous processes on the blockchain, and they include contract signing and the release of funds.
When it comes to HR procedures, smart contract technology can be deployed to reward employees once certain goals are met. This would not only enhance performance but also promote healthy competition among teams.
The best thing about smart contracts is that they can be switched off when the need arises. Smart contracts can also be used in risk management, especially when tied to milestones to incentivize contractors.
Using smart contracts in such scenarios upholds work principles that would enhance productivity and ease the workload for HR managers, especially when dealing with huge workforces.
HR teams handle a lot of sensitive data, which usually includes employee contact details, salaries and remuneration, healthcare plans, bank accounts, performance records, and job-related expenses.
This data could lead to employees being targeted in the event of a data breach. Blockchain technology provides stellar safeguards against hack attacks thanks to sophisticated encryption algorithms, which taper most types of intrusion attacks. The immutable nature of blockchain also drastically reduces the chances of data manipulation.
Further blockchain protections include cyberattack sensors that can lock out certain access protocols once an attempted breach is detected. Unusually, hacker groups target common internet devices such as smartphones and Internet of Things (IoT) because of their shared architecture and myriad system loopholes.
The use of blockchain security applications would help to lock out compromised devices by utilizing security signature technology.
Blockchain security In HR networks can be further augmented using consortium blockchains. Consortium systems only allow preapproved entities to access records stored on the blockchain. They allow for a certain degree of control to be maintained over a network while keeping stored data private.
Enterprises looking to use this model usually rely on Proof of Authority (PoA) systems. This is because they utilize a consensus algorithm that makes use of value identities.
5. Tax Information
Blockchain can be used to replace inefficient tax information systems by indicating tax adjustments in real-time. Such a system would allow for speedy HR audits.
Another major advantage is that many HR managers would spend less on tax accounting because of the provision of accurate tax estimates.
Today, HR payroll tax issues are complicated by factors such as bonuses, overtime pay, commissions, and sick time pay.
Using blockchain technology for taxes would also help HR teams to easily overcome them and avoid unwarranted tax audits and potential penalties.
6.HR Managers and Cryptocurrencies
HR managers stand to benefit greatly from using cryptocurrencies to make salary payments. Among the biggest benefits is lower transaction costs. Conventional money transfer modes can be expensive, especially when making cross-border payments. This is because they incur bank commission surcharges and currency conversion fees.
Crypto transactions, on the other hand, are usually peer-to-peer and transaction fees are usually related to prevailing gas fees, which can be a few cents per transaction.
Crypto fund transfers are also faster because of the lack of banking intermediaries. While bank to bank international money transfers take several days to settle, a cryptocurrency transaction typically takes minutes. This translates to fewer delays and less inconveniences arising from money holdups.
7. Blockchain HR Solutions
Some innovative blockchain startups have come up with unique blockchain solutions tailored for HR teams.
Credly is among the most notable HR blockchain solutions right now is. Its blockchain network helps business enterprises and HR managers to track and verify work experience and related achievements through its robust digital credentials network. The Credly system allows millions of work-related accreditations to be recorded on the blockchain. Top training brands, higher learning institutions, professional associations, and employers are the main users of the credentialing service.
The platform is designed to authenticate education and work experience to help professionals get opportunities in relevant areas.
Credly also helps business organizations to retain the best talent by providing performance insights while identifying skill gaps.
Etch is another innovative HR blockchain-based solution. The service operates a blockchain payment system that reduces payment disputes through a smart contract protocol that releases payments once set milestones are met. It is designed to improve payment efficiency and help projects stay on course.
Furthermore, its system has an escrow module that makes payments in stablecoins. This not only solves cash flow problems but also helps contractors and subcontractors avoid insolvency-related issues, especially in capital-intensive industries such as construction.
- Gospel Data Platform
Gospel Data Platform is another exemplary blockchain service. The platform allows company managers to share sensitive data with other authorized persons within an organization. Its network settings can also be tweaked to allow data-sharing with external partners, while retaining information privacy.
The service is accessible via the Google Cloud Marketplace.
Bitwage is another exceptional blockchain service that streamlines HR tasks. It runs a blockchain payroll service that supports invoicing and crypto payments.
And What if You Get your Next Salary in a Cryptocurrency?
Global inflation has risen drastically since 2020, and in some countries, the rate has climbed by over 7 percent. This has led to an increase in prices for basic commodities. In the US, which is the world’s biggest economy, food prices have climbed – in some cases by double-digit percentage numbers.
This translates to lower disposable income for the nation’s workforce. As such, more employees are choosing to receive half their paycheck in deflationary cryptocurrencies such as bitcoin. According to a recent survey carried out by the deVere international consulting firm, over half of Generation Z employees would like to receive 50 percent of their pay in crypto.
Such insights have led to more companies offering crypto payments to lure top-tier talent.
www.blockchain-careers.com is well aware of the latest blockchain HR solutions. The blockchain jobs and cryptocurrency jobs agency also provides HR blockchain solution consultancy services.
With close to a decade of experience in the talent search and workforce management industries, Blockchain Careers offers an unparalleled blockchain jobs service to both job seekers and talent hunters.
Visit Blockchain Careers today to access the latest blockchain and cryptocurrency jobs.