BLOCKCHAIN TECHNOLOGY IN HUMAN RESOURCE
Introduction
Blockchain technology is revolutionizing how businesses are being conducted around the world. Many organizations are adopting Blockchain technology in their management systems. This technology is popular for the transformative tendency it has in companies. The decentralized ledger system offers a lot of benefits when it comes to record-keeping. New models have been developed on the technology thus eliminating the intermediaries who they have been relied on in the past. Blockchain is shaping the human resource management system in the creation and selection and recruitment of individuals in an organization. Blockchain uses a group of nodes in the maintenance of data through a shared ledger system. This paper describes how the blockchain is shaping HR through the selection and recruitment of persons.
Records are stored in independent networked computers that are placed in a strategic position. With the term record denoting a record thus the term a chain of records. Technologies being adopted in different organizations there must exist employees who will be able to use the technology. For the blockchain to be implemented in the company system the leader selects a team that will be responsible in the implementation process (Lukic, Salkić & Ostojić, 2018). Consultancy companies were the initial implementors of blockchain in different organizations. Understanding blockchain as technology alone is not enough, thus it is very important to apply the technologies in an organization to create value.
A decade ago, it was difficult to be employed by organizations when one didn’t appear with several verification documents. Since the verification process is time-consuming and tedious the process involved dual verification of the documents to certify that this is the actual candidate. Today blockchain is helping companies to retrieve verified data about the candidate. After retrieval, the data is stored safely ensuring that the privacy and security measures are followed while adhering to the set regulations (Michaelides, 2018). The credential of a candidate is easily identified and verified. A credential system can help in reducing the time used during manual verification. The system also reduces the incidences of fraud while building trust in the recruitment setup.
Blockchain technology guarantees its users quick, cost-effective, and reliable in the verification process. The credentials of employees are encrypted after retrieval. Organizations can share the performance of ascertaining employers in the blockchain ledger system. Candidates have had a habit of lying about their past experiences during the selection and recruitment process (Salah, Ahmed & ElDahshan, 2020). To confirm the allegations the HR officer has to make multiple calls and email to the reference list. The verification task was tedious and time-consuming. With blockchain, it is easier to verify and also confirm the past role of the candidate in question. The candidates waiting for selection and recruitment cannot publish false information. After the verification process the information cannot be altered or changed (Michaelides, 2018).
Since all information in blockchain technology has been digitized most sensitive information is easily accessible, it is the function of the recruiters to store the information properly and responsibly. Stored Data is prone to data hackers and tampering. Since data is broken into small chunks it enhances protection and privacy. The decentralized system ensures makes it difficult for individuals to hack. The system has encrypted data that is thoroughly checked by the network. Blockchain has gained a lot of popularity and it has played a big role in the human resource system in the selection and recruitment process.
References
Lukić J. M., Salkić, H., & Ostojić, B. (2018). New Job Positions and Recruitment of Employees Shaped by Blockchain Technologies. Leadership & Management: Integrated Politics of Research and Innovations, 314.
Michaelides, M. P. (2018). The challenges of AI and blockchain on HR recruiting practices. The Cyprus Review, 30(2), 169-180.
Salah, D., Ahmed, M. H., & ElDahshan, K. (2020). Blockchain Applications in Human Resources Management: Opportunities and Challenges. In Proceedings of the Evaluation and Assessment in Software Engineering (pp. 383-389).