A buzzword for the last couple of years, blockchain has finally received recognition as a technology that has the potential to reinvigorate different industries. Rob Brouwer, CEO at Jobrapido, recently talked to Dutch magazine Computable about how the recruiting sector can also benefit significantly from this change if it manages to exploit the full potential of this new technology.
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Based on the recent Deloitte’s 2020 Global Blockchain Survey, business leaders are increasingly investing in blockchain and digital assets as a top five strategic priority, with 66% forecasting investments of $1 million or more in the next 12 months.
According to the standard Wikipedia description, a blockchain “is a growing list of records, called blocks, that are linked using cryptography. Each block contains a cryptographic hast of the previous block, a timestamp, and transaction data”. The data inside the blocks may contain different information – from a transactions archive to an individual’s education and work history.
But what does this mean, and why has blockchain become a buzzword in the business community over recent years?
Possible applications of Blockchain in countless industries
Blockchain is an especially promising and revolutionary technology because it helps reduce risk, stamps out fraud and introduces transparency in a scalable way across several industries and applications.
What really makes it stand out is its fundamental principle of inalterability: no one can modify the chain without all other community members knowing about the change and approving it. This factor is what makes blockchain so appealing, as a technology that is decentralized, incorruptible, and transparent.
Blockchain is already affecting how individuals and organizations interact, how businesses collaborate with one another, the transparency of processes and data, and the productivity and sustainability of our economy.
Rapid advancements are being made in large-scale blockchain initiatives. These include blockchain-based financial infrastructure to simplify global money movement and commerce, as well as distributed ledger technology for trade finance and blockchain-enabled track-and-trace platforms, among others.
The Deloitte survey report also revealed increased blockchain initiatives in everyday processes including title transfer and protection, patient data storage and retrieval, and more efficient voting or food sourcing tracking.
What blockchain technology can do for HR and Recruiting industry
An impressive 82% of respondents to the Deloitte 2020 survey say they are either hiring staff with blockchain expertise or plan to within the next 12 months (compared with 73% in 2019), as many executives recognize it as a true agent of change that has the power to affect and innovate across the entire organization.
Indeed, having spread beyond financial services and entered the wider business world, blockchain technology also has numerous uses in the field of HR and recruiting.
Efficient data verification and background checking
An important yet time-consuming part of the hiring process is accurate verification of the information provided by applicants. This comprises checking references, previous professional experience and, sometimes, educational credentials. This phase is extremely important, in fact, as stopping fraud has become one of the most essential recruiting activities.
The introduction of blockchain technology makes it possible to securely archive a verifiable chain of data and, as a result, HR managers get instant access to candidates’ full transparent work and education histories, all filed in a protected digital ledger.
Accelerating contracting paperwork
Blockchain can contain data needed for employment contracting – a new hire’s electronic signature, payroll details, fiscal numbers, and other information required for the paperwork. So for recruiters, this could save a lot of time: in future, a candidate could be employed almost immediately if their entire data package can be transferred in a second. Blockchain also opens the door to smart contracts: it may become possible to pay employees automatically through a code that transfers the money once certain conditions are in place, without any risk of delays or fraud.
Automating and mitigating taxation process
Blockchain’s ability to automatically record and update employee tax considerations and provisions has quickly caught the attention of the HR industry, which is always struggling with ever-changing tax laws and regulations.
By streamlining the taxation process, blockchain-powered platforms will likely be favoured by many HR departments around the world, allowing recruiters to save time and money.
High volume recruitment
Hiring in bulk stirs up a lot of challenges that the recruiter manager has to overcome. The biggest struggle is the large amount of time needed for screening and shortlisting.
Blockchain has huge potential for use in the gig economy and in high-volume recruiting, where verifying the skills and past experience of temporary workers is challenging due to large numbers of candidates and unforgiving deadlines. Since the volume can vary from hundreds to even thousands of positions in a given time slot, when it comes to executing high-volume recruiting technology is crucial.
The truth is, closing numerous positions simultaneously can be a mind-numbing task; so adopting blockchain methods together with modern automation and AI-driven Talent Acquisition Solutions – such as our Smart Intuition Technology™ – can be the key to finding the best candidates in the massive pool of applicants.
This way, businesses can both fulfill their hiring needs and meet overall business objectives. They can not only improve the quality of applications by finding greater numbers of targeted candidates with the right skillsets to apply for the job opening, but also save precious time and costs in the process.
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