The Future of HR: How Blockchain Can Change Recruitment
According to Transparency Market Research experts, blockchain technology will completely change the world in five years. And in 2024, the global blockchain market will grow to $20 billion.
What is blockchain
Blockchain is a way of storing data without a single server. Information is stored on the devices of thousands or hundreds of thousands of people (depending on the specific blockchain). The two main advantages of blockchain are publicity and reliability. Records here cannot be faked, since all participants in the system store them. If you are interested in how the crypto works in a blockchain – visit the bitcoin360ai site
Financial transactions are the most common application for blockchain. This is confirmed by hundreds of startups that develop their products in the fintech niche. However, do not forget that the blockchain can change people’s lives not only with the help of cryptocurrencies.
Recruitment is another area that blockchain technology can improve. It is possible that the next breakthrough in the HR-tech market will happen precisely with the help of decentralization. The relationship between companies and employees is one area that lacks transparency. For example, the Aworker project creates a single verification platform for current and potential employees, which will help people and companies more clearly coordinate work issues.
So far, there is no unified system for verifying the skills and competencies of employees. Therefore, the labor market is dominated by three main problems:
There is no trust in candidates who come for an interview at the company. Their professionalism can only be confirmed by the recommendations of past employers. As Russian practice shows, they are unreliable.
Recommendations are too general or very subjective. Letters of recommendation do not convey the actual professional competencies of the candidate. Often, recommendations are written for the show and do not provide an objective assessment of the employee’s performance.
Unreliable referrals or wasted time. There are also cases when a person indicates his friend, who will give a good recommendation to the applicant (admit it, who is familiar with this practice). Therefore, HR managers check recommendations on common phone numbers, and not those indicated in the questionnaire. But this is a significant waste of time. Find out the contacts of a person, and ask to be connected with him. Schedule a call back if the person is not there, and so on. In other words, this is the time that an HR manager could spend on more important things.
All these problems are solved by a single verification system. With blockchain technology, a new ecosystem can be created in which all stakeholders will benefit. Companies will get more reliable information about applicants than recommendations. Employees will also be able to confirm their professional competence.
Benefits for Job Seekers
In the current situation in the labor market, people suffer no less than companies. A person cannot prove that he is a reliable and good worker. When an applicant comes for an interview, he is a blank slate for the HR manager. The recruiter by default does not have verified information and cannot trust the applicant. Therefore, they often choose not the best employee, but the one who knows how to sell himself better at an interview.
In the fight for a vacancy, applicants usually win who:
Well-spoken and correctly answer questions during the interview.
For the query “how to write a resume” Google gives out 408 thousand articles – and this is only in Russian. Therefore, a good resume does not always reflect the real competencies of the applicant. After all, he can write anything about himself. And HR managers understand this. The objectivity and reliability of the recommendations were mentioned earlier.
About how to correctly answer questions during an interview, YouTube shows 49,800 videos. All this suggests that good communication and self-presentation skills can easily mislead even an experienced HR manager. Therefore, they often choose not the most effective and suitable applicant in terms of competencies, but the one who knows how to sell himself better.
In fact, the company is interested in how effective the employee will be the applicant, and what benefits he will bring to the business. This is where blockchain will help potential employees prove their professionalism. With the help of decentralization, a person will create a reputation as a reliable and honest worker.
How blockchain will help people and companies
Recruitment is an area in which the blockchain will give a new leap in the development of relations between companies and people. A unified system for verifying skills and performance indicators will open up new recruitment opportunities. It will allow:
Employees with a good reputation find work faster.
Companies save time and money when hiring employees.
Quickly assess the competence and professionalism of people
In this case, such a system must necessarily meet the following conditions:
Data transparency. At any point in time, any participant must have access to the original data in order to verify their truth.
Data reliability. So that no company or person can change the data in their own interests.
Process automation. The system should work according to mathematical algorithms without intermediaries in order to eliminate or minimize the human factor.
Independence. Do not belong to any company to maintain objectivity.
All these conditions are met by blockchain technology, with the help of which our Aworker project creates a platform. The goal is to develop a global employee evaluation and reputation system for the whole world.
According to the roadmap, at the beginning of 2018, we will launch a general rating for employees of various specialties. This will help people build a reputation for being reliable and skilled workers. Companies will receive an objective and in-depth tool for analyzing data about applicants and motivating employees.
Blockchain allows people to be more open. At the same time, employees themselves will be able to receive additional remuneration for the use of their data. All this is possible thanks to Ethereum smart contracts. With the help of blockchain technology, the labor market will become more transparent and understandable for all parties.
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