Blockchain Technology and Hiring- Is that a match?

Blockchain Technology and Hiring- Is that a match?

Blockchain technology has become a disruptive technology in the financial sector, especially banking. As this new-age technology gradually penetrates other sectors, the recruitment industry will not be an exception. The implementation of blockchain technology can enhance the recruiting process and improve the functionality of the HR department. It could potentially change how companies hire new employees forever! 

But, first, just a little background of the blockchain technology; it is essentially a distributed ledger that records and protects the integrity of the submitted data. Blockchain technology ensures data security by storing data in multiple servers around the world instead of storing it in one place and risking data loss in the event of a malfunction or fraud. Furthermore, the submitted data can never be virtually altered unless all parties agree and verify it. It is characteristics like these that make blockchain tech a key contender to change the hiring landscape. 

How can it be used in Human Resources?

Blockchain technology could become a game-changer for the recruitment industry. Using this technology, many tasks that are currently resource heave could be streamlined and made more efficient, like:

• Verification process could be streamlined: A candidate can store all its credentials on a blockchain platform which includes their education qualification, reference resources, work experience, identification documents, etc. All of this information could be verified directly once by the main sources, and the result could be accessed by recruiters (with the candidate’s consent). This will give candidates control over their CVs and help recruiters expedite the hiring process, and easily eliminate fraudulent candidatures. 
• Elimination of intermediaries: Companies don’t need to hire external resources to verify candidate credentials. This will eliminate the extra cost for the company, speed -up the hiring process and make the entire process transparent. Also, companies could use it to find the best talent for their job openings since only genuine candidates with the correct credentials will pass the process. 
• Decentralization of social networking sites: Blockchain technology could end the monopoly of professional network sites regarding employee credentials and skill references. Companies don’t need to rely solely on any social media platforms for skill reference checks but get the entire data through the blockchain network. 

Do you think blockchain technology can help recruitment in any other way? Share your opinion in the comment section below.