The future of HR: how a blockchain can change the recruitment process

The future of HR: how a blockchain can change the recruitment process

According to experts from Transparency Market Research, the blockchain technology in 5 years will completely change the world. And in 2024, the global blockchain market will grow to $ 20 billion. Further, we’ll discuss what is blockchain and how it can change HR forever.

What is blockchain technology?

The blockchain is a unique technology of storing data in which there isn’t one aggregate server. The information is stored on the devices of thousands or hundreds of thousands of people (this depends on the particular blockchain). Blockchain has two core advantages: publicity and reliability. Records can not be forged since they are stored by all participants in the system.

Financial operations are one of the most common direction for the blockchain technology these days. This is confirmed by hundreds of startups who develop their products in the niche of the fintech. Nevertheless, it’s important not to forget that blockchain can change people's lives not only with the help of crypto currency.

Staff recruitment and blockchain

Personnel selection is another direction that can be improved by the blockchain technology. It is possible that the next breakthrough in the hrtech market will occur precisely through decentralization. Relations between companies and people is the place that now lacks transparency. For example, the Aworker project creates a unified platform for employees verification, which will help people and companies coordinate work issues more clearly.

At the moment there is no unified system for verifying skills and competencies of employees. Therefore, the labor market is dominated by 3 general problems in hiring people and finding a job:

  1. There is no confidence in the candidates who come to the interview for the first time. Their professionalism can only be confirmed by the recommendations of previous employers. As the Russian practice shows, they are often unreliable.
  2. Recommendations are too general or very subjective. The letters of recommendation do not convey the real professional competencies of the candidate. From time to time the recommendations are written for a tick and do not give an objective assessment of the employee's performance.
  3. Unreliable recommendation authors or time spent. There are also cases when a person indicates his friend who will give a good recommendation to the applicant (we all know those people). Therefore, HR managers check recommendations on common company’s telephone numbers, rather than those specified ones written in the questionnaire. But this is a significant waste of time. Finding out the person's contacts, asking them to connect with him. Schedule the second call in case the person is not available and so on. In other words, this is wasted time that an HR manager could spend on more important things.

All these problems can be solved by a unified system of verification. Using blockchain technology creates a possibility to build a new ecosystem in which all interested parties will benefit. Companies will receive more reliable information about applicants and people will be able to confirm their professional competences.

Benefits for people

In current situation on the labor market, people suffer as much as companies. An applicant can not prove that he/she is reliable and an effective worker. When the applicant comes for an interview with HR manager, he's like a clean sheet. The recruiter has no verified information about this person and can not trust the applicant. So it’s a common practice to choose not the best employee, but the one who knows how to talk their way at the interview.

In the fight for a vacant place, usually win people, who:

  • Have a good resume,
  • Have good recommendations,
  • Have advanced speaking skills and is able to correctly answer questions during the interview.

On request, "how to write a resume" Google shows you 103 000 000 articles. Therefore, a good resume does not always reflect the real competencies of the applicant. After all, he can write anything about himself. Usually, HR managers understand this. The problem with objectivity and reliability of recommendations was mentioned earlier. If you ask Youtube ‘how to correctly answer questions during the interview’, it’ll show at least 5 330 000 videos. To conclude, good communication skills and outstanding self-presentation can easily mislead even an experienced HR manager.

In reality, the company is interested in the effectiveness of a potential employee. The blockchain technology will help people to prove their professionalism. With the help of decentralization, a person will be able to create the reputation of a reliable and honest worker.

How blockchain will help people and companies

Personnel selection is the area where the blockchain will give a new leap in the development of relations between companies and people. A unified system of verification of and performance indicators will open new opportunities for recruitment. It will help:

  1. Employees with a good reputation to find work faster.
  2. Companies to save time and money in hiring employees.
  3. Quickly assess the competence and professionalism of people.

In this case, such system has to meet the following conditions:

  • Data transparency. Anytime any participant can have access to the initial data to make sure that they are true.
  • Data reliability. Not any company or person has the ability to change the data to their advantage.
  • Automation of processes. The system should work on mathematical algorithms without intermediaries to exclude or reduce to a minimum the human factor.
  • Independence. Do not belong to any company to maintain objectivity.

All these conditions are met by the technology of the blockchain, which is the base for Aworker platform. The goal is to create a global system for assessing professional skills and integrating this information to build the good reputation for employees from all over the world.

According to the roadmap, early next year we will launch an aggregate rating for employees of various specialties. This will assist people to create a professional reputation of reliable and skilled workers. Companies will receive an objective and in-depth tool for analyzing data on job seekers and motivating employees.

Blockchain allows people to be more open about themselves. In this case, employees will be able to receive additional compensation for the use of their data. All this is possible because of the Ethereum smart contracts. With the help of blockchain technology, the labor market will become more transparent and understandable for all parties.