Blockchain: HR’s New Best Friend in the Making

Blockchain in HR? Isn’t it Unusual? Or is it? Let’s find out…

According to the recent study convened by Gartner, 12% out of the 500 surveyed HR and technology leaders are leveraging blockchain-powered solutions to enhance their HR processes. And another 23% are experimenting with the technology.

The experts who conducted this research also believe that Blockchain technology can revolutionize the world of work. It can transform not only the HR processes, but also the workforce, skills needed, and transparency.

The best part about Blockchain? You don’t need to delve into the concept at great length to understand the fundamentals or principles of it all; knowing the basics would suffice. 

It’s good to take the expert’s word for it. But before you rush off and invest in one, let’s look at how Blockchain is infiltrating HR and whether it is for the good or not.

Benefits of Befriending Blockchain for HR

• It Tightens Security

HR and payroll carry out some of the most sensitive financial transactions for an organization. This calls for an extra layer of protection. And that is exactly what Blockchain is offering. 

Implementing blockchain-powered solutions can not only help tackle internal and external hacks of sensitive employee data but also provide limited access to these records, making it more secure. By serving as an impenetrable layer of security against hacks and frauds, Blockchain effectively decentralizes data. And because it secures data across a large network of computer storage spaces, it acts like a line of defense when it comes to safeguarding confidential information.

• It Enhances the Entire Recruitment Lifecycle

As per the recent survey conducted by CareerBuilder, 75% of HR managers have caught a lie on a resume. And not just that, 2 in every 5 HR managers spend less than a minute looking at a resume, and even in this little time frame, such staggering stats say a lot. 

This means the HR’s recruitment department needs a dose of trust, a source they can entrust with authenticating the data source. And that is where Blockchain comes into play. Blockchain supports the recruitment process like motivation and productivity from job verification to background checks. It not only offers trust in the accuracy of the data but also takes over labor-intensive and tedious processes like conducting a background check, job verification, and more.

The next one is kind of the most important one so let’s build up a little more for this one...

Here’s a riddle for you: -

What is considered to be a company’s most significant expense?

Here’s a hint, it involves paying the pillars of the company.

You guessed it right - Salaries!!!

• Blockchain Streamlines Payroll

It has the power to automate tasks that are currently carried out by human resources, eliminating time lags, reducing errors, and streamlining the entire process. And not just employees, Blockchain offers “smart contract” solutions that can allow your organization to automate and secure payment to contractors and vendors.

MSMEs, in particular, can reap the benefits of this technology as it requires paying payroll to employees and settling accounts with cross-state border vendors.

Still on the fence? Here is a matter of fact - 45% of early adopters of Blockchain are already implementing smart contracts organization-wide!

Source: https://www.entrepreneur.com/article/314564

So your HR department doesn’t need to contact your employees’ bank or do a monthly payment run. Blockchain can take care of it all!

• It Automates the Finance of It All

HR professionals have their hands full, as it is with recruitment, employee engagement, and other essential activities. They don’t need the extra burden of staying on top of constantly evolving tax laws and regulations, right? Well, with the advent of Blockchain, they won’t have to. 

This incredible, new-world technology can automatically record and update employee tax considerations and provisions. So, your HR doesn’t even need to lift a finger.

Speaking of taxes, you don’t want auditors coming near your business for inspection, right? This is another area of expertise blockchain can offer assistance with. Having blockchain-powered solutions, in this case, is like having a life jacket when you’re struggling to stay afloat in audit-filled waters. Blockchain makes it easier to sustain an audit as it can securely share records in real time and guarantees the authenticity of data.

• It Makes Managing & Monitoring of Attendance a Walk in the Park

By storing biometric data such as fingerprint or retina scan, blockchain technology allows organizations to record, monitor, and track attendance, thereby authenticating the expenses for wages and claim purposes.

In addition, employees can also have real-time access to their data, so there would be no room for disputes or questions regarding the accuracy of the data. This will ultimately strengthen the trust element in payment authorization and claims. Not to mention, it will significantly reduce errors and frustration between HR and payroll departments, who are usually at each other’s throats when it comes to employees’ attendance.

• It Even Improves Employee Experience

Another facet where Blockchain flags its pole is employee experience. Before hiring, employers outline the terms of employment, and it’s HR’s responsibility to uphold the conditions of the contract. Traditionally, this requires manual intervention of provisions that might affect the employee’s benefits package. 

However, with Blockchain in the picture, inputting these terms and conditions becomes a piece of cake, allowing HR to deliver these benefits seamlessly. 

So it’s a win-win for both the HR and the employees.

Is Blockchain the Center of the HR Universe?

Considering the innumerable benefits, it offers and the tedious tasks it’s automating, it wouldn’t be erroneous to say that every organization, small, medium, or large, must befriend this incredible technology. And they must do it TODAY! So, what are you waiting for? Get on the technology bandwagon and Go Blockchain!

Stay tuned to learn more about the technological trends revolutionizing the field of HR and payroll.