Upcoming trends start to show significant impact in the field of HR also. Blockchain has a wide scope in HR management, especially in maintaining a proper record. This is one of the major issues in HR management. Migrating to the best blockchain can solve this hurdle to a greater extent. HR resource holds large data in relation to the employee and the employer.
Current working scenario:
Currently, HR departments hold the data in both their server and as hard copy. Even the most techno follow companies with full infrastructure are seen as incapable of maintaining error-free employee data. It is seen that the major portion of employee data is getting lost prone to their technical faults. Keeping both hard copy and a soft copy is the only solution the company can implement so as to keep their records safe and untouched. Fully automation of this department is just confined to paper.
How blockchain can Help HR?
Blockchain is an immutable hyperledger technology. It records all the transaction to a private or public blockchain network. If human resource starts to accept widely this technology, it will surely alter the way how information and data processing are handled between employees and employer. HR management is something that is related to as a private thing for a company. Keeping this on a public blockchain network won’t be safe enough. But it's considered to be safe when the data is in private network and also keep permission-based access that can let the data from accessing unauthorized person also.
Some major ways in which blockchain can affect the Human Resource process:
Blockchain data management:
Keeping and maintaining employee records is very difficult. Chance of data getting lost is higher. Blockchain thus helps in maintaining and managing data effectively and efficiently. If we add data to the blockchain it turns immutable, meaning one can’t alter the content anymore. Keeping the data and proving the data to an authorized person can help in upholding the safety of records. When the data are stored under private blockchain, it assured that there is no access even from outside.
2. Blockchain Verified Resumes and Certificates:
Blockchain verified documents like resumes will help the HR department in seamless handling of applicant data. The hiring proceedings are turned simpler and easier under the blockchain. Blockchain document verification will help to prove the authenticity of the submitted documents like resumes and certificates. One advantage over the current method is that through the blockchain platform, the organization would be able to instantaneously authenticate resume and other background information, that is already transformed into the distributed ledger. Blockchain verification technology is already available in the market.
Another most important use case of blockchain is issuing the company certificates into the blockchain. Suppose one employee is leaving the current position or job and he is in need of his experience certificate from the current employer. Here, the employer can issue a blockchain verified experience certificate that employees can use from anywhere at any point of time, despite any cross border challenge. Blockchain document verification can be instantly conducted.
3. Use of Smart Contracts:
Smart contracts are computed programs that help to maintain and provide access to blockchain related data. For example, consider maintaining employee work record or performance record. These records are very helpful in the future.
Smart contracts are computer programs that are built to control all the transaction between parties in the blockchain. They are much similar to those of standard contracts. Via blockchain technology, the entire HR processes can be automated. Think about a smart contract which automatically distributes wages instantly with no risk of delay or fraud.
4. Secure Cross Border Transaction.
Securing payment across the globe has now become so simple via using cryptocurrency and new blockchain technology. Normally international payroll demands two or three intermediaries which are very time-consuming. By using the blockchain technology in human resource, the future of cyber securities is changing to its best state, where every data and transactions are secured through cryptography which makes it hard to tamper the data.
5. Auditing and Compliance
Another main use case related to auditing of data is- records of the transaction are easily traceable and it is very easy for auditing. Around 52 % of companies around the world already started implementing the blockchain technology to their life-cycle.
6. Attendance Keeping
Now it is easy to store securely the employee details like biometric data such as iris scan or fingerprint. The organization can easily track this data and can have unique data to track employee attendance and expenses that can be claimed. HR have a correct vision to the real-time data and it would easily remove disputes since the data records are accurate, will help in strengthening the trust element in payment authorization. Lastly, it would decrease fraud and error caused by the payroll and HR departments.
In short Blockchain in HR has a wide scope of possibilities right from document verification to easy accessing of documents, secondly proving the authenticity of documents to eliminating the possibility of any future threats say tampering or misplacing of data. Blockchain in HR can help business organizations in setting up a strong, confidential employee database with no malice or fraud. In further, the blockchain in human resource automates the entire proceedings keeping the workflow simpler and less complicated.