Blockchain as a Disruptive HR Technology in Recruitment
Blockchain has off late emerged as a revolutionary helping tool for HR professionals, especially for the purposes of hiring and recruitment. Every HR individual seeks an ideal candidate to fill in a specific job position. But, let’s admit it, finding top talent is difficult, specifically for leadership positions. When we talk blockchain, almost everyone would first think of cryptocurrency exchanges and Bitcoin. But, that’s not what the disruptive tech is all about. The deployment of blockchain has expanded to multiple avenues, more than what you would be thinking.
Of all, the applicability of blockchain is taking off in an unprecedented manner in the HR domain, majorly for recruitment. At present, the leading HR tech happens to be the blockchain technology, and it’s second to none, despite the presence of other advanced game-changing technologies like data analytics and AI.
The applications of blockchain has traversed to a plethora of industries in the last five years, while penetrating the HR sector quite recently. As per a Statista research, investments in the blockchain industry are expected to rise to a whopping USD 2.3 billion by 2021, up from USD 335.5 million in the year 2017.
How has Blockchain Affected the Recruitment Process
For recruiters and CHROs, it’s highly taxing to go through every resume been submitted for a specific job role advertised. The process involves intensely repetitive and tedious work that comprise verifying work experience, education, candidate skills, among other professional records of applicants. Imagine these resumes get submitted on a blockchain portal of the concerned company.
The uniqueness attached with the blockchain tech is that a record once entered on it, cannot be changed or tampered with. This way, the possibility to exaggerate or fake credentials by the applicants gets eliminated. A candidate can only add information, and that too, will need an approval by the node administrators on the concerned blockchain. More importantly, an applicant’s professional history can be tracked on a blockchain network.
What Do The Global Hiring Experts Say About Blockchain in Hiring
Tim Sackett, President at HRU Technical Resources, which is an IT & Engineering Recruitment Firm stationed in Michigan, says – “Asking candidates to submit resumes on a blockchain network will make them follow ethical practices when it comes to their career journey, and job hopping. It would make professionals rethink on absconding, leaving jobs soon after joining, and will restrict them from doing all sort of unethical things in their professional lives. Even after being on blockchain, if they do any of such things, they will take a big ‘hit’ on their professional record, that too, permanently.”
What Added Benefits Exist With Blockchain-Backed Hiring?
Here are a few considerable benefits with deployment of blockchain-based HR technology in your recruitment process:
- A candidate’s history will show up on a blockchain network, thereby showcasing how many times he/she fixed an interview with some firm, and then thereafter, didn’t show up.
- Global HR leaders at top technology firms are already exploiting the benefits attached with blockchain in recruitment. They invite applications on their blockchain network, and hence can verify candidate records while putting in minimal work.
- One cannot fake his identity, or professional record, on a blockchain-backed HR portal.
- Blockchain-powered employee-recruitment platforms offer digital verification of resumes and credentials.
As per McKinsey & Company – “Blockchain holds the potential to establish itself as a new open-standard protocol to ensure verified identity, trusted records, and transactions in the near future.” Currently, a couple of companies are exploiting blockchain tech in their recruiting. Ascribe and Recruit Technologies are among the popular ones. Both have developed a prototype resume authenticity-checker service powered by blockchain, for the job seekers. Digital authentication of candidate credentials and resumes will be performed deploying the mentioned prototypes.
Use of blockchain technology in recruiting is still in its early phases, but the trend is going to intensify in a couple of years from now, may be by the end of 2021. Blockchain is not going to completely disrupt the recruiting domain in the next six months or a year, but sooner or later, the said HR tech in recruiting will explode.