Blockchain in Human Resources

Blockchain technology is increasingly being used by companies to optimize their structure and improve management efficiency. However, blockchain can also be used to enable hiring departments to find skilled workers faster and easier. According to CompTIA research, 51% of Blockchain early adopters in HR use it to verify digital identities, simplifying the talent scouting phase.

How can HR benefit from Blockchain?

  • Security of personal data

Blockchain makes it possible to use secure identification so that each of the candidates who submit their application for consideration is assured that all personal information concerned will not be stolen or distorted by hackers.

  • Faster selection of potential candidates

Distributed blockchain databases that store all information about candidates can be used by HR staff to find a suitable candidate faster. Recruiters spend a lot of time searching for potential candidates suitable for filling specific roles within a company. Blockchain technology could prove to be an excellent ally in reducing the timing of selection and increase its accuracy, both fundamental aspects to guarantee the best match between companies and professionals.

  • Collection of employee information

From the first interview with a candidate, a series of information on the registry emerges that will be collected and stored: personal data, qualifications, certifications. Personal data stored within a blockchain is encrypted and compliant with GDPR policies, meaning no one can manipulate or steal a candidate’s personal information.  Once a candidate has joined the company, he will then have to provide additional data which in turn will be kept by the company for the entire duration of the employment, and this applies to all present and future employees of any working entity. Using Blockchain technology could greatly simplify the work of the HR department by allowing it to quickly and securely archive all information while keeping track of any changes in the data in real-time.

  • Automation of personnel management processes

Blockchain in Human Resources can be used in the drafting of employment contracts using the so-called “Smart Contracts”, which allow you to create automated agreements. Smart contracts come into action only if all the conditions set out in the agreement are met. For example, the payment methods for employee bonuses are defined on the basis of certain parameters written on the contract and are not subject to evaluation by the employer, making the process of awarding bonuses and benefits more streamlined and transparent.

How does add value to the HR industry?

Companies can benefit from’s digital document credentialing solution in order to verify the authenticity of candidates’ credentials, in the case the issuing university anchors diplomas on the blockchain, as in the case of the University of Nicosia. issues blockchain-anchored certificates which can be instantly verified on the blockchain with a click of a button. The potential employer receives all relevant information about the candidate, such as his specialization, graduation date, academic performance, internships, and other accomplishments. This in turn allows the employer to save time and easily obtain detailed information about the candidate without additional cost and effort.  The principles on which distributed ledger technology is based, do not allow any alterations to any anchored digital document. This in turn significantly reduces the level of academic fraud.

Overall, blockchain has tremendous potential to be harnessed to transform and improve the HR sphere, making the hiring process simple, convenient, and transparent. Let us know in the comments if your enterprise wishes to implement blockchain to leverage the HR department’s load of work.

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