HR has witnessed huge disruption in the past few years. Emerging technologies like AI, Data Science and Analytics are making it super-efficient. HR can also benefit from the latest technology i.e. Blockchain.
Blockchain has the potential to make HR a more efficient business function. It can help improvise payroll, enhance background verification, identify genuine certifications, enable smart contracts and more.
Here are 4 ways how blockchain can help transform HR function of a company:
i. Elimination of Back-Office Functions
Back-office functions are the intermediary functions of a transaction. Such functions include reconciliation, providing a receipt, and providing a purchase order. Removing these intermediaries provides 2 main benefits to businesses.
Firstly, the time taken to complete transactions, and other administrative tasks, is greatly reduced. Reduced transaction time creates more time for employees to spend on other important business functions. The HR team can plan more training sessions to improve employees' skills. Employees can also attend more conferences and external training opportunities to keep them current.
Secondly, it reduces business expenses. One would think that removing the intermediary functions would result in the loss of countless jobs. Companies are avoiding massive job losses by merging these functions and training these employees to take on roles in enterprise risk management and financial analytics. Both functions are crucial for business success.
ii. Effective Hiring Processes
Hiring managers will be able to access a database of potential employees. This database will contain a comprehensive, trustworthy records of these person's education, skills, training and workplace performance. This useful information increases a hiring manager's ability to find the right talent for positions. It also increases the potential employee's ability to showcase their best skills.
iii. Increase in Productivity
It is felt that better matching people with positions will improve productivity. This will be particularly helpful for small and medium-sized enterprises (SMEs). The small size of these companies often makes it difficult for recruiters to find the best matches for positions. Blockchain technology will generally help people work in roles best suited for their skills.
iv. Fraud Reduction
HR handles a wealth of personal data for employees. Unsecure digital storage systems for this data are open for cyber attacks that lead to identity theft and fraud. This is particularly true for SMEs. Blockchain's cyber security application mitigates against these challenges. It also limits employees' access to data thereby preventing the likelihood of internal fraud.