Any company’s HR department often has trouble navigating legal requirements and performance management. That’s because managers tend to consider this department as superficial. However, it is one of the most important ones because it coordinates hiring efforts and is also in charge of essential paperwork. But HR lacks strategic prioritization, workforce planning, and training systems, which can have detrimental effects on the company in the long term.
Although solving these problems requires a change in the company structure so that the company culture nurtures using proper methods and techniques, some of HR’s insufficiencies can be solved through blockchain technology. This new adaptation would allow companies to make recruiting and hiring processes smoother while improving data accuracy. But that’s not everything.
Blockchain can provide cybersecurity
SMEs and bigger organizations are targeted for data breaches and other cyberattacks since they’re not fully prepared to keep up with hackers. Since the pandemic negatively impacted businesses and their systems’ security in the last two years, more of these cyberattacks occurred, which could’ve been prevented if proper measures had been taken.
But besides having a cyber-resilient company culture, protecting your company through blockchain technology prepares your business for any future unforeseen events. Storing data on the cloud isn’t 100% safe anymore, especially since HR holds essential personal and financial information that could be used for illicit purposes. However, blockchain technology eliminates the possibility of your business being hacked since stored data is decentralized, meaning accessing or modifying information is almost impossible. In order to change something, you need to be authorized and verified through the technology of smart contracts, which are written and deployed to your blockchain.
Blockchain can facilitate the recruiting and hiring process
The current methods of approaching candidates by selecting the best ones from a never-ending list are time-consuming and prone to errors since the process is mainly human-conducted. At the same time, candidates often falsify their resumes to get the job, despite not being fit for the position.
Blockchain technology can solve both of these problems. First of all, employee records could be stored on the blockchain, including employment history, letters of recommendation, educational documents, and so on. Applicants, too, could keep all their information on the blockchain so that everyone can see what makes them fit for the role they applied for. Such an improvement could make the recruiting process faster since you don’t have to send and answer emails back and forth to get the information needed; you only need to look at the information available on the blockchain, and that’s it.
Blockchain can secure worker’s payments
One of the best features of blockchain technology is that payments are more efficient. That’s because transferring money on the blockchain is the main activity developed on this system. For example, if you check the Ethereum price and want to buy Ethereum online, the transaction will take up to a few seconds to be processed. Therefore, the HR department could greatly benefit from this blockchain feature since most payments undergo a manual verification process that is often sluggish and can be prone to errors.
Choosing to deal with payments through blockchain technology would work because any action is done through smart contracts. By coding them properly, businesses and employees can establish the determining factors for which pay is earned so that when payment is due, the smart contract runs the programmed systems, so there’s no risk of sending salaries and invoices late or mistaking them. The smart contracts can be designed as the managers and workers agree on, so there’s no way of getting scammed from both sides.
Blockchain can improve attendance systems
Time-tracking systems are vital in companies that focus on working time. However, since some businesses rely on flexible working hours, it would be best for them to provide a system through which the actual working time can be easily tracked and registered. Blockchain technology would help ensure that all records are accurate and accessible only for authorized changes.
Using blockchain would allow companies to help ensure the data collected regarding attendance is accurate and can’t be modified. The gathered information would also be helpful to see if current working practices are productive or not by comparing more approaches towards working on certain projects. Using blockchain would help solve issues regarding:
- Adapting HR processes to match the company’s goals;
- Balancing the needs of employees with the company’s target;
- Dealing with negative feedback;
Blockchain technology can prevent internal fraud and external cyberattacks on employee records since it’s restricted and controlled. Even those with access to the files could not make significant changes, which would provide much more transparency for employees.
Blockchain can be used for paying employees in cryptocurrency
Blockchain’s main feature is working with transactions in any cryptocurrency in existence. Since there are more than 12.000 diverse tokens with their own blockchains, companies could choose the one that would benefit them the most. That’s because cryptocurrency technology has developed so much that some countries have adopted them as legal tenders (El Salvador with Bitcoin). Plus, a vast majority of the world’s countries accept cryptocurrency payments (mostly with Bitcoin and Ethereum).
Some businesses have chosen cryptocurrencies that align with the company’s culture. For example, Tesla has adopted Dogecoin as a preferred form of payment, and the company’s owner has supported the cryptocurrency’s path. Other companies, such as GMO Group, decided to pay their workers in Bitcoin in order to develop and promote cryptocurrencies.
Choosing to pay employees with crypto would benefit more prominent companies that hire globally because workers could easily access and use their crypto. At the same time, the payroll system would be faster, and companies could extend their activities more smoothly since they can pay anyone around the world to work for them. This could also become an opportunity for finding talented people.
Blockchain technology is here to stay and can improve so many processes in the HR industry. Adapting blockchain practices to the company’s culture can increase productivity, help find talented people and enhance security, which are essential aspects of a thriving business.