Before I discuss the possibilities for blockchain in recruitment, let’s look at what exactly blockchain is. Blockchain is a decentralized and secure system to store data across multiple locations on a peer-to-peer network. The data is stored in shared ledgers that are accessible to all members of the network. But what does this mean?
A ledger can be thought of as a book with pages, where each page stores a transaction or record. The pages are grouped into sections (called blocks) that have entries going back to the beginning of the ledger. These blocks are then chained together using cryptographic signatures, forming a chain (hence “blockchain”).
Every block contains information about previous transactions, creating an audit trail and making it easy to verify those transactions. This means that if someone tries to tamper with any transaction in the chain, it will be obvious because all participants will be able to see that their copies don’t match up.
Blockchain has grown way beyond the cryptocurrency markets and prices and found applications in almost every industry imaginable, including HR.
Potential to Solve the Recruitment Industry’s Biggest Challenges
In the context of recruitment, blockchain has several important use cases. First, it can be used to validate a candidate’s identity—including their social security number, passport details, and address. Second, you can use blockchain to verify the candidate’s professional history, such as previous employment and qualifications. Finally, you can use blockchain to verify the candidate’s skills and work experience in a secure way that will help protect your business against fraudulent CVs.
Update Resumes and Credential Verification
- Blockchain can help recruiters with the recruitment process by making resumes and other credentials more transparent. CVs, certificates, and other credentials can be added to a blockchain so that they are indisputable. This would help make it easy for recruiters to cross-reference information provided in a resume against the actual claims that have been made.
- Blockchain provides a single, universal database for resumes and job postings. Resumes could be linked to an online identity so that their work experience is verified using smart contracts. This could make it easier to find candidates because their qualifications would be accessible before they even apply for your job opportunity. It also makes it more difficult to falsify one’s qualifications on the blockchain since there are no intermediaries involved between candidates and employers when they share information directly through this new system – which reduces the risk of fraud being reported by either side after signing off on credentials or employment agreements too quickly without taking time out first as well!
Transform Recruitment Management
Yes, this technology can be revolutionary for starting your job search. Blockchain will transform recruitment management by improving the candidate experience. Blockchain allows candidates to have control over their personal data and how it is used, as well as a simple way to share information with employers.
Additionally, blockchain technology can help companies avoid hiring bias and make better hiring decisions; this technology gives access to a more transparent view of individuals’ capabilities and experience. Finally, blockchain can help companies better understand their recruitment process and talent pool; this technology allows for the faster gathering of comprehensive data and reporting on all aspects of the hiring process from source, to onboarding.
The Future of Blockchain in HR Is Limitless
So, what is blockchain? In short, it’s a database of time-stamped records that are stored in a network of computers. Each record has a unique identifier and is linked to the previous record. But unlike a traditional database, there is no central authority that controls blockchain data. Instead, the data resides in blocks that are chained together using cryptography. This not only makes it hard to tamper with data records but enables secure sharing across multiple parties without requiring trust.
Blockchain technology can do many things. For example, track product provenance, verify identities; improve supply chain management; make digital payments more transparent, and keep medical records safer and more accessible for patients. Now let’s take a look at how blockchain technology can change HR processes for the better:
Recruitment process: Blockchain recruitment platforms can eliminate duplication of effort by allowing candidates to share their work history with multiple recruiters at once. It also enables recruiters to screen candidates faster because they don’t need to chase after references or contact information. Recruiters will also be able to search smart databases filled with verified content on candidates’ education, certifications, and skills—such as language proficiency or computer literacy—rather than relying on applicants’ self-reported information on resumes and job applications.
Onboarding process: As mentioned above, blockchain can help verify education credentials and employment history when onboarding new hires. It can also be used to check identity documents such as passports and driver’s licenses against government databases—for those who require visas or other verifications before starting work—and even run criminal background checks against open-source intelligence databases such as newspaper articles online (thanks to blockchains being searchable).
Performance review process: Blockchain can streamline performance reviews by eliminating paper forms and making it easier for employees to give feedback about their supervisors as well as each other throughout the year rather than just during annual reviews (which incentivizes healthier working relationships). In addition, managers could use blockchains with project tracking software so
Blockchain technology has a lot of potential for improving a company’s talent acquisition efforts.
What are some of the benefits of using blockchain tech in recruitment?
- Reduced cost. Since it cuts out the middleman, blockchain can reduce the cost of external recruitment services.
- Increased transparency. Both employers and potential hires can see how a job application is progressing in real-time, so there’s less chance of important information being lost or delayed.
- Speed up the hiring process. It makes it easier to share and verify credentials like qualifications or work history securely and instantly between stakeholders like employees and HR teams—helping to shorten hiring cycles considerably.
- Enhanced quality of talent. Blockchain allows recruiters to trawl through vast swathes of data—such as social media or employment websites like LinkedIn—to find the best candidates for a role almost instantly, drastically reducing the likelihood that they’ll miss someone with exceptional skills because they were on a different platform or overlooked by an algorithm (as most job search sites do).
- Improved employee experience. The technology offers more transparency about their company’s HR processes, helping them gain more trust in their employer and increasing engagement at work as a result. Plus, if staff is made redundant, blockchain could one day allow them to easily transfer all their data to another platform so they can immediately begin searching for new roles without having to start from scratch again—a win-win for everyone involved!
