Blockchain is one of the hottest technologies today. At its core, blockchain is a distributed ledger technology (DLT) that allows participants to keep track of all digital transactions in a secure and transparent environment. Over the next five to ten years, it is excepted we will begin to truly see blockchain’s potential.
Here are 4 ways that blockchain could help companies address their human resources pain-points.
Sourcing and Managing Talent
HR managers often struggle to find the right talent for the right role. Companies could leverage blockchain technology to overcome this problem as it’s a more efficient and secure way to verify a candidate’s credentials. Employers would have access to verified data on the candidate’s education, skills, training, and workplace performance. In turn, this would help HR managers match candidates to the most appropriate role.
As blockchain automates processes and reduces time to complete routine tasks (i.e. payroll), productivity is invariably boosted. Further, blockchain can reduce costs for a company, especially in smaller companies where resources are more limited.
Simplifying International Payroll
If you have overseas operations, you know too well how expensive and time-consuming it is to pay your international employees. Organizations must regularly deal with multiple intermediary banks, third-party vendors, and currency fluctuations. Blockchain can reduce the complexity and costs of cross-border payments and international payroll by eliminating the need for intermediaries. Additionally, the creation of blockchain-based corporate coins or crypto-currencies could further simplify the process in the future.
Securing Data and Preventing Fraud
Within human resources, there are a significant amount of confidential data, high-risk financial transactions, and sensitive personal information that are dealt with. Companies could potentially leverage blockchain to secure and to protect employees’ data and detecting fraud from potential cyber-attacks.
The rise of disruptive technologies presents immense potential for the way business works. Early adopters of new technologies can leverage these tools to move their businesses into the future, improve productivity, and cut costs while saving time.