The human resource team is one of the crucial pillars of any organization. In this regard, care has to be taken to improve the system so that the organization can get the best resources in a timely manner. In this article, let us analyze how Blockchain technology can impact HR operations in any organization. If there is one technology that is in the news for its huge potential in recent years, it has got to be Blockchain technology. This has the potential to transform various sectors completely like finance, bitcoin and banking.
The current situation with hiring resources
The current process of hiring resources in any organization depends on the standard steps of collecting resumes and conducting interviews to identify the potential of the candidates. After the resumes are collected, they are filtered to select suitable candidates based on their experience and certifications in relevant courses. However, all of these depend on the basic assumption that the candidate is providing authentic information in the resume. When the HR team has to filter the candidates, they initially rely on the information provided by the candidate and go with the interview process. Once the candidates clear the interviews, the information provided by the candidates will be verified manually through various means. This is an expensive process as the background verification is often done by outside agencies who specialize in such tasks. Apart from that, it also takes a lot of time, and the HR team has to spend a lot of money and efforts to verify the information provided by the candidates.
Background verification of candidates
Most reputed companies rely on professional service providers to handle the background verification of candidates. Some companies that cannot afford such processes do not worry too much and rely on the information provided by the candidates. This can go wrong on many occasions, and it may cost a lot of money, in the long run, to clean up the mess. They have to fire the candidates who have provided wrong information and again start the hiring process from the beginning. If this happens in the middle of a crucial project, it can lead to a lot of complications and completely affect the overall output of the project. On the other hand, companies that can afford to spend money on such processes hire professionals to accomplish the task. This changes a lot depending on the level of resource the company is hiring at that moment. If the HR team is hiring a junior-level executive position, it will not spend much on the background verification process and manage it with standard methods of calling the references to enquire about the candidates. However, when the company is hiring a top-level resource, it has to be very careful, and they go to extreme levels to do background verification. This can also take a lot of time, and service providers even visit the place of the candidates physically to check the information provided by them in the resume. Apart from that, there is also another problem associated with such processes, and it has to be done in a subtle manner so as not to hurt the sentiments of the candidates. However, with the implementation of Blockchain technology, things can become very easy for the HR team as they can access the records of candidates on the public blockchain ledger. In this way, the entire process of background verification becomes an easy task, and it will be cost-effective and reliable in the long run. The technology can also help the HR team to filter the candidates effectively based on their previous projects and stint at any particular company. In this way, there is no need to rely only on the resumes, and you can easily get detailed information about any candidates in a matter of a few hours. This will be helpful for every company that wants to access the Blockchain, and they can share information about the candidates in a common and transparent platform. This is not detrimental in any way to the candidates as they get to provide all the details about their previous projects in a transparent manner. It will only become a problem for those candidates who want to provide inaccurate details about themselves and fake their experience or other things in the resume.
Automation of payroll tasks
The HR team has another responsibility of making payments to the employees on time. This involves checking their login hours and making the payment based on their agreed packages. Apart from that, the HR team will also have to calculate taxes for each employee based on the payment and keep a record of all the transactions. This is where blockchain technology can help companies, and they can easily use smart contracts to work on such processes automatically. In this way, there is less chance of manual errors, and smart contracts can be customized depending on the conditions set by the HR team. The conditions get implemented in different nodes of Blockchain, and the smart contracts will get executed without the need for a large number of resources. In this way, the advent of blockchain technology can have a huge impact on the HR activities of any organization. However, such technology is still not implemented in the HR domain, and there is scope for implementing this technology in a big way soon.
