How Blockchain can make HR better
HR has witnessed huge disruption in the past few years. Emerging technologies like AI, Data Science and Analytics are making it super-efficient. Can HR also benefit from the latest Blockchain technology?
The answer is yes. Like AI, blockchain too is disrupting multiple industries and making business functions more efficient than ever before. But how?
What is Blockchain?
Blockchain rose to popularity as the key technology behind Bitcoin and is one of the hottest and most intriguing technologies in the market. A recent Gartner report “Hype Cycle for Emerging Technologies 2016” (August 2016) ranked blockchain highly in terms of expectations. It indicated blockchain technology has potential to kick-start a platform evolution or revolution within the next 5-10 years.
Blockchain provides a decentralized and secure ledger, which gives participating parties a way of validating the information related to a transaction. In doing so, it speeds up the process and cuts out any middlemen.
Blockchain has the potential to truly disrupt industries like insurance, fin-tech and make processes more secure, transparent, and efficient across functions. Let us also explore how HR can harness this technology in the future.
How HR can benefit from 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.
A PwC report has aptly captured some possible usage of Blockchain, which can help make HR better:
- Verifying and assessing the education, skills and performance of potential recruits – enabling those recruits to be allocated to the most appropriate roles
- In turn, giving people a comprehensive, trustworthy blockchain-based record of their education, skills, training and workplace performance
- Managing cross-border payments and employee mobility, including international expenses and tax liabilities, with the potential for organizations to create their own corporate currencies
- Boosting productivity, such as by automating and reducing the burden of routine, data-heavy processes like VAT administration and payroll.
- Enhancing fraud prevention and cybersecurity in HR, including both employees and contractors.
In the last few years, with cyber crime rates going up, trust on technology has been slowly eroding. However, with blockchain organizations can rebuilt the lost trust.
Blockchain is a technology, which has arrived with a bang and at a very relevant time and age. Businesses who want to remain future-proof cannot dismiss its scope and implications. Like how HR functions embraced other emerging technologies and are immensely benefitting, they must also heed blockchain in order to create a strong digital strategy and remain relevant in the long term.
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