Bitcoin’s popularity propelled blockchain technology into the mainstream. Yet, the technology’s potential for disruption and transformation is not limited to the monetary system.
On the contrary, in the last couple of years, blockchain became a staple for innovation in almost every industry. We can see the digital ledger concept popping up in real estate investment management, law (Buterin’s smart contracts), healthcare, Human Resources (HR), and many others.
Consequently, the question is not if blockchain technology will transform HR recruitment but how profound and radical the transformation will be.
The Power of Accessibility and Background Checks
There are an array of HR recruitment technologies that automate and simplify the candidate selection process. However, there is a catch!
The success rate comes down to the database’s quality and the size of the talent pool. Moreover, many external variables affect the recruitment process and reduce the chances of success. Some job boards’ shoddiness, filled with fake resumes, makes the difficult process of recruiting even more challenging.
But what if recruiters had access to a secure and decentralized database of resumes, directly shared and controlled by the candidates? This can be done and verified with blockchain technology. Such a massive catalog of CVs would cut out the middleman and drastically increase the talent pool.
Each resume would be verified with a digital signature; with blockchain tech, these are almost impossible to tamper with or falsify. For instance: Harvard’s digital signature will confirm a Harvard education reference. Thus, the need for background checks becomes obsolete.
MIT introduced tamper-free digital degree certificates back in 2017. This gave each MIT graduate the ability to share their diploma on social media and, more importantly, with their future employer.
The digital signature is protected by blockchain technology. MIT won’t be the last to adopt it.
Smart Contracts and Recruitment
Smart contracts are simply self-executing contracts. A few lines of code automate the whole process and exclude contract tampering and third-party involvement. Once the terms and conditions of the agreement are fulfilled (the deliverables), the payout occurs automatically.
Smart contracts can be used in every field, including Human Resources.
In fact, with the rise of on-demand talent, many companies are now working with freelancers and contractors regularly. The “nature” of the smart contract provides a guarantee for every party involved. Once the proper signatures are added, the contract is executed automatically.
The same can be said for referrals, which will be instant, secure, and verifiable with the blockchain. If the technology is advanced enough in a couple of years, smart contracts can replace traditional employment contracts, making the process significantly faster.
On a Final Note
Even though blockchain technology is taking baby steps, HR specialists already know the end game—a simple, effective, and speedy recruitment process. In fact, an array of companies in the space are working on distributed ledger tech. However, the state of the blockchain now is closer to the 1990s early Internet era, and we all know how much the Internet changed the world.
As such, it will take some time before a significant disruption occurs, but it will most certainly come—and it will change the recruiting landscape forever.
