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.
Blockchain in Human Resource
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.
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
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
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.
Click here to read more about : Blockchain in Human Resource
100 Borough High Street,
London, Greater London
SE1 1LB, United Kingdom
Thank You !
Mail UsUK Phone