People often associate the blockchain with cryptocurrencies, and, while most cryptos have to operate on a blockchain, the blockchain can do much more than just process and verify crypto transactions. Blockchain technology could also revolutionize the world of business, especially in the area of human resources.
The blockchain could help automate many operations, allow for easier onboarding, and reduce the number of menial tasks HR employees have to perform, among other things. All of this could contribute to higher productivity and lower costs. Let’s take a look at some of the many ways that blockchain could change the world of HR as we know it.
Payroll automation
The blockchain can be used for automated payments and bonuses, and we could see a day when employees ask to be paid in crypto or when businesses offer the option.
Nothing is stopping you from doing this right now either. Companies like Blockchain.com are already paying all of their employees in bitcoin and don’t even have a bank account. You also have companies like SC5 back in Finland that allow employees to be paid either in fiat money or in bitcoin.
If you’re in the tech field, offering crypto checks could be a great selling point and allow you to gain visibility. But, before you decide to do this, we suggest you check out services like OKX that allow you to convert coins to fiat money and compare the price of multiple cryptocurrencies in fiat currency to know exactly how much you’re paying your employees, as prices can get very volatile.
Better applicant traceability
On a distributed blockchain, people’s identities can be tokenized, and these tokens could be used to show an applicant’s employment history fast. Employers could then tap into this blockchain and largely eliminate the chances of people making fraudulent applications.
Better data access and security
Another great thing about the blockchain is that it can allow the safe storage of sensitive information and make sure that that information cannot be changed without it being verified by all the other computers on the network. You can also exchange sensitive information like performance or medical records with participants who were given permission.
Pay for tasks
The blockchain could make the contract work much more easier and convenient. Paying people as they meet certain milestones could be done seamlessly through smart contracts.
If you hire someone to build a website, for instance, then you could hold funds in escrow and release them immediately as they reach certain steps. That’s just one way that this can be done, but smart contracts could regulate any task. This could greatly facilitate operations and reduce the number of interactions between HR personnel and temporary workers.
These are just some of the ways that the blockchain could change how businesses operate their HR department. We still don’t know what the future holds, but we can expect more businesses to adopt the technology if they see financial benefits in it.
