The first blog in this series introduced the basics of blockchain. We showed how Distributed Ledger Technology (DLT) impacts payroll and HR.
The second blog explored blockchain’s potential to safeguard personal data (PII) and how information is shared. This third blog looks at how Blockchain improves hiring processes. And finally, we show ways DLT shortens recruitment timelines to benefit employers and candidates.
Companies search for candidates to perform a job. Sometimes they seek a permanent, salaried employee. Of course, at other times they need temporary hire to complete a gig. To clarify, a gig is a specific task or role for a set amount of time.
Ideally, HR finds the right candidate to fill the role quickly. But, in real life, the recruitment process is seldom short and simple.
Before HR extends an offer, they take many steps to find the right candidate. As a result, the hiring process is time and labor-intensive. A recruiter demonstrates a successful search when she sources, vets, and onboards the candidate.
Personal profiles on LinkedIn contribute to the complexity of candidate searches. These profiles feature career information. And details are frequently updated as workers move through the ranks. Although it’s a public forum, some information is fictitious.
Unfortunately, some candidates take the liberty of exaggerating education, roles, and accomplishments. Hyperbole occurs, on job sites, so frequently that popular memes list the top lies.
Before entering into a relationship, an employer must verify some information. Truth seekers need to know: Is the candidate who she says she is? Does she have the qualifications and certifications listed on her resume?
When vetting candidates, a lack of digital records is a primary obstacle. For instance, when a candidate’s experience exceeds 15 years, it becomes difficult to confirm a university degree. Similarly, a company listed on a resume might have changed names or closed its doors. Often, HR must hunt down records from companies that no longer exist.
Is there a better way to identify suitable candidates? And what is the best way to confirm qualifications and references they claim to have?
Remember that DLT stores and keeps a record of each transaction in a ledger. Once a transaction is completed, a block is added to the chain.
A great advantage is that retroactive changes are not allowed. Furthermore, all nodes on the network participate in verification and synchronization. With these safeguards in place, a blockchain is virtually tamper-proof.
So from an HR perspective, DLT simplifies verification of identity, education, along with work information ranging from qualifications to references. In a nutshell, blockchain improves your hiring processes because you can trust the data. Also, efficiency increases when recruiters verify information without a third party.
Leading early adoption, some educational institutions issue degrees and certifications on blockchain. Blockchain provides a historical record to streamline employer verification of education.
Most conveniently, DLT records remain intact even when a school or university closes, or a company goes bankrupt. For these reasons, the trusted cv wallet will likely replace traditional resumes.
Wallet access provides a prospective employer with a complete, real-time view of verified job performance. It’s instant proof of education and work records.
It gets even better. Blockchain offers more advantages to the recruitment process. Imagine if contracts and performance-based pay made a home in smart contracts. A contractual agreement, with the worker, is placed in a smart contract and secured on blockchain.
Furthermore, full transparency offers peace of mind for both parties. The expectations are well defined. So everyone understands assigned duties, deadlines and payment details.
A smart contract culminates in payment. But, to start, funds, earmarked for this contract, simply remain in escrow until all conditions are met. When the worker delivers the result, the payment is automatically and immediately released. Conversely, the opposite is true because there is no payment delivered for partial or late completion.
There are three advantages to simplifying the recruitment process using blockchain:
Blockchain improves the hiring process. With ease, a candidate’s ledger validates eligibility for work. The technology identifies inconsistent data and proves falsification.
If the employee already holds specific certifications, they are quickly verified. The new onboarding process is more digital and less document-centric.
Sometimes an employee takes time off between jobs and doesn’t disclose those details. Longer service times mask employment gaps. A career gap is not necessarily bad. However, hiding facts doesn’t make a good impression. It’s in the best interest of the candidate to be more transparent.
Records on DLT reveal a verified work trail. It provides assurance, from prior employers, about employment dates and roles. Ultimately, these facts give prospective employers a more comprehensive view.
While employers rely on their permanent workforce in the foreseeable future, changes are coming. Smart contracts allow for more flexibility to cover spikes in workforce needs or special projects. Higher efficiency in recruiting means that more gigs are on the horizon.
In the future, some opportunities will pay based primarily on performance. A company becomes less dependent on when and where people work. Instead the top concern is driving results. So more opportunity opens for work from home arrangements as well.
DLT establishes confidence for employers and candidates. Trust goes both ways. Employers know information is accurate. Similarly, workers feel confident that payment will be made for a job well done.
Recruitment benefits from blockchain applications. With great commitment, NGA realizes the significance of cutting edge technology. We strive to improve the future of work.