Blockchain technology was introduced in 2009 with the evolution of Bitcoin – a virtual currency. Unsurprisingly, multiple industries have begun benefiting from blockchain technology, from finance to logistics to healthcare and recruiting. If you’re an experienced recruiter seeking the latest trends in the HR industry to remain on top of your game, keep reading and learn how blockchain is transforming the recruiting process.
Originally developed to help the cryptocurrency Bitcoin, blockchain has altered financial functions and can disrupt industries. Reputed businesses and top recruitment agencies have started implementing blockchain recruitment to assess candidates and streamline hiring. But before going into the topic’s depth, let’s look at what blockchain actually is.
Table of Content
- What is Blockchain Technology?
- What Makes Blockchain Suitable To Recruitment?
- How Can Blockchain Be A Game-Changer in the Recruitment Industry?
- Will Blockchain Be a Passing Trend or a Lasting Solution?
- Summing Up
What is Blockchain Technology?
Blockchain is a broadcasted and protected database. It records and stores every transaction on the network; every new transaction is counted after the network verifies it. It forms a “historical ledger” of authenticated and reliable data. Every block of data is hooked and linked to each other using cryptographic regulations.
What Makes Blockchain Suitable To Recruitment?
In simpler words, blockchain keeps an accurate track of records. As this digital catalog is incorruptible, it is impossible to rob, delete, or change data that is already there on the chain. Blockchain presents several attributes and advantages that make it fit for diverse aspects of the recruitment method. Here are some essential explanations of why blockchain is advantageous for the recruitment industry:
- Instant Verification of Candidates Validity
- Secure Access to Authenticated Records
- Quick Access to Real-time Candidate Profiles
- Faster Background Check Speed Up the Recruitment Process
- Decentralized Network
- Easy Elimination of Fraud Via ID Verification
- Better Candidate Selection Via Verified Resume Data
How Can Blockchain Be A Game-Changer in the Recruitment Industry?
Blockchain stops the necessity for manual confirmation by keeping verified information decentralized. It guarantees that recruiters can efficiently access verified data, blocking hiring procedure delays and expediting new talent onboarding.
Here are some areas in which blockchain can be a game-changer in the recruitment industry:
Security:
It’s essential to highlight the importance of secure data storage with blockchain, given that the HR department holds sensitive, confidential, and financial data. Today’s systems for information storage need to be faster and can be easily hacked. As a result, different frauds and identity thefts can happen. However, blockchain is decentralized, and data can’t be modified from a private computer. Therefore, all sensitive data is maintained securely.
Credential Validation:
Job candidates usually provide credentials, such as academic degrees and work experience, which ought to be proved by employers. Blockchain can help candidates store tamper-proof certificates, letting possible employers verify their capabilities quickly and efficiently. It decreases the chance of hiring people with falsified or excessive credentials.
Reduced Fraud:
The recruitment process can be disclosed to different types of fraud, such as fake job postings, identity theft, and resume adornments. Blockchain can make a delicate and unchangeable record of job listings, candidate qualifications, and hiring conclusions, reducing the possibility of fraudulent moves.
Background Assessments:
Background checks are time-consuming and often expensive in hiring. Blockchain can facilitate this by delivering secure and efficient standards of accessing and verifying a candidate’s background details, such as criminal histories, employment records, and references.
Data Privacy:
Blockchain empowers candidates to have more authority over their personal information. It gives explicit permission for its use, helping companies comply with these regulations and improving trust between candidates and employers.
Decentralized Job Marketplaces:
Blockchain can help the innovation of decentralized job marketplaces where job seekers and employers can link directly without mediators. Smart contracts can automate payment methods and give freelance or gig workers suitable wages.
Global Talent Pool:
Blockchain can enable cross-border recruitment by offering a standardized and protected method to verify global qualifications and work visas. It allows companies to tap into a broader and more diverse talent pool.
Smart Contracts:
Smart contracts in blockchain can automate different aspects of the hiring process, including contract negotiations, salary payments, and employee onboarding. It reduces organizational overhead and guarantees that all parties concerned stick to the terms of the agreement.
Trust and Transparency:
The transparency of blockchain can promote confidence between candidates and employers. Candidates can see the entire application and hiring process record, decreasing uncertainty and stress. Employers can also have confidence in the precision of candidate information.
Costs-Effectiveness:
By eliminating mediators, reducing fraud, and automating processes, blockchain can lead to cost savings in the recruitment process for employers and candidates.
Will Blockchain Be a Passing Trend or a Lasting Solution?
Blockchain is not free from queries and inaccurate charges like any other technical advancement. Some blame this technology for its lack of leadership and attempt to make others think it is a passing trend. Some even accept that with businesses using blockchain in HR, recruiters will probably leave their jobs.
But the fact is that advancements like blockchain are here to make humans more pertinent than ever and not push them out of their jobs.
Let us share impressive stats: According to Grand View Research, the international blockchain market is expected to gain $1,432 billion by the end of 2030, with a CAGR – compound annual growth rate of 85.9% between 2022 and 2030.
Blockchain has entered the real estate, finance, insurance, and banking industries. Blockchain-based cryptocurrencies have already become an essential component of businesses.
Now is the right time for the recruitment sector to enter the surging approval of this technology by utilizing blockchain-based recruitment platforms.
Summing Up:
Utilizing Blockchain techniques in the recruitment method provides multiple benefits. It will streamline the recruitment process and decrease the quantity of duplicative financial and legal paperwork. Also, Blockchain offers rapid and valuable insights into the employees’ records, leading to advancement and better employee experience possibilities.
Blockchain has outstanding security for improving and altering the recruiting world, which could be necessary for cracking some of the biggest hiring challenges. Suppose you’re not willing to dip into involving Blockchain now. In that case, that’s okay. Arming yourself with an awareness of the technology and remaining open to the opportunities sets you at a significant benefit in the competitive talent landscape we’re living in.
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