How Using Blockchain Can Transform the HR Function and Change the Way it Works

What is Blockchain and why it is being hailed as Truly Transformative?

Blockchain is the hottest new trend in the world of technology. It is being touted as a game changer and a revolutionary approach to the way business and society operates.

Indeed, the hype around Blockchain is so intense that it is being hailed as the answer to the pressing problems being faced by the world including climate change and poverty.

In addition, use of the Blockchain technology is being mentioned as behind the rise of Crypto currencies and the emergence of peer to peer trading and banking. So, what exactly is Blockchain and why it is transformative?

To start with, Blockchain is a Distributed Ledger based authentication and verification as well as peer to peer exchange of information and data which translates into more authenticity and reliability as the integrity of the data is validated by networked encrypted keys that validate each transaction only when the entire network keys are in sync.

In other words, it is almost impossible to hoodwink the Blockchain ledger as each transaction is vetted and validated against the other keys so that data integrity is maintained.

In addition, because it removes the need for intermediaries and middlepersons, it can help the emergence of a truly independent and peer based technological method that can be used for everything from banking to governmental functions such as disbursing funds for welfare schemes.

Indeed, the transformative power of Blockchain is such that it can radically change the way we approach business and societal problems.

Can Blockchain Change the way the HR Function works?

Given that Blockchain is so happening, how can it transform the way corporates work? The answer to this lies in the way the specific functions operate and whether such peer to peer technologies can help corporates save money, time, and redundancies.

For instance, taking the limited case of the Human Resources Function, it is indeed the case that Blockchain can help HR professionals authenticate resumes better, use it for improving the efficiencies from the training processes, and use it to capture and report vital data that can then be used to ensure that tools such as the HR Scorecard are used better.

In other words, using Blockchain, the way in which the HR function works can be transformed in ways that were not possible before.

Take the case of the Recruitment function and how Blockchain can help transform the same. By authenticating the genuineness of resumes and validating the data in the applications sent by the prospective candidates, Blockchain can help HR managers to weed out fake resumes and inaccurate information.

Moreover, given the fact that Blockchain operates in a Distributed Database model, it can help corporates network with their peers and build a centralized repository that can then serve as a useful reference for referrals, recommendations, and authentication of information that candidates provide.

In other words, Blockchain helps corporates in building an industry wide database that can provide reliable and accurate information about past, present, and future employees.

Will Blockchain Lead to Value Addition for the HR Function?

Moreover, Blockchain can also help the HR function by improving data collection and validation of HR processes such as training, appraisal, and payroll.

In addition, it can help in data gathering for the HR scorecard that is a data driven tool which is used for measuring the efficiencies and the ROI or the Return of Investment from HR processes.

For instance, feedback about training and measuring how well specific training processes help organizations can be collected and used with a higher degree of authenticity and reliability.

Apart from this, payroll can be made more efficient through accurate disbursement of salaries and perks and bonuses. Indeed, the beauty of Blockchain is such that it can result in value addition for the HR function in specific and the corporate overall.

There is also the possibility that Blockchain can be paired with tools such as the HR Scorecard to enhance the data quality and the integrity of information to vastly improve the value added.

The key benefit of using Blockchain for HR processes is that it results in efficiencies from economies of scale and synergies from the integration of disparate HR processes thereby leading to a centralized and decentralized system wherein the former aggregates the data and the latter provides for authenticity and reliability.

Due Diligence and Proof of Concept Needed

Having said that, it must be noted that Blockchain is still in its infancy and hence, despite the euphoric promises of this technology, corporates must be circumspect about rushing to use it for their business processes such as those of the HR function.

Indeed, much like the other technological fads and trends, Blockchain offers a Utopian result and hence, there must be some due diligence done to gauge whether the reality meets the hype.

This is where astute professionals can try it out for a POC or Proof of Concept exercise aimed at gauging whether it is relevant and pertinent to the organizations.

In addition, it would be better if industry and tech experts are consulted before making the leap to use the same.

On the other hand, Blockchain is already being used by many businesses and firms and hence, their experience can be used to tailor the same for any corporate interested in implementing it.

Thus, there is much hope in the world of business and tech around Blockchain and it remains to be seen whether it would be transformative or remain a fad that disappears without any impact.

To conclude, using Blockchain for the HR function would indeed be transformative provided some initial due diligence is done before implementing it.

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Human Resource Management