Blockchain technology is poised to revolutionize a large number of markets, ecosystems and businesses. The blockchain, which consists in storing and transmitting information on the Internet, organized by block chain linked to each other thanks to ‘cryptographic’ or ‘hash’ signatures, gradually develops within Human Resources and attracts attention of many HRDs.
Blockchain, a guarantee of transparency and trust for HR: from the traceability of contractual relationships to the validation and certification of skills
Blockchain applications, which allow easy peer-to-peer exchanges, without intermediaries and almost instantaneously, constitute an interesting potential for many HR usage cases. Indeed, the blockchain could provide transparent services focused on the wishes of employees, while ensuring their respect for the confidentiality of their personal data, at the service of HR functions.
Let’s take a closer look at two use cases that the blockchain could respond to.
- Guarantee the traceability of contractual relationships : by allowing the exchange of validated, reliable and even certified information, the blockchain, by means of a cryptographic system, could store and transmit digital data in a secure manner and manage, for example, contractual relations between an organization and a candidate. Technology can help build a file by securely retrieving administrative documents for pre-hiring declarations, for example: the employer will therefore have the guarantee that the data provided is fair and reliable.
- Validate and certify skills : the blockchain could also verify the veracity of the diplomas and the conformity of the information recorded in the CVs. Also, employers will have the possibility of attesting the functions assumed, the periods of execution of the missions of an employee within the organization, or even to certify technical skills, belonging to common standards or even training followed. by a collaborator. Finally, with the development of collaborative learning methods, and peer-to-peer evaluation, the blockchain could help recognize the progress of the professional careers of employees, whose expertise is recognized within their organization. In short, thanks to blockchain technology, the information collected and certified could be published on social networks in order to increase the degree of employability.
HR and recruitment process: blockchain-ez vous!
Although the uses of blockchain are still in their infancy on the job market, and what’s more, at the heart of HR functions, we can imagine 3 ways in which this technology could transform the way recruitments take place. Take the recruitment route for an immersion in the HR world of tomorrow:
- Recruitment of candidates : With the promise of enabling unalterable and traceable digital recording, the blockchain would speed up and automate the way in which employers verify the information relating to the identity of their future employees, for a better correspondence between candidates and posts. This process could also benefit candidates, who, through their educational establishment could integrate their CV in a blockchain in order to decrease the time spent by their future employer to check the candidate’s references. In the job market of the future, the APII career verification platform is helping TechnoJobs become the first site in the world to offer employees CVs verified using blockchain technology.
- Editing smart contracts : from the employees’ point of view, the blockchain should make it possible to simplify and eliminate many administrative procedures. With smart contracts – an automated contract that automatically triggers an action on the blockchain when certain conditions are met – no more paperwork and slowdowns in defining identifiers, passwords, email templates, and checklists , as is often the case at the start of a job. In the highly valued area of contract management, the issue of security is also paramount, and the blockchain chosen should at all costs avoid security breaches. As such, smart contracts still pose legal problems today, at issue, the smart contract based solely on human trust, but these seem to have a bright future.
- The remuneration of a salary in cryptocurrency : This is a major innovation that could profoundly change the job and HR market: blockchain technology promises a quick, almost instant, way to pay employees, from all over the world. This is the case of the Bitwage platform which uses bitcoin as an indirect means of payment and converts it to the rate of the employee’s local currency, or Chronobank.io which removes intermediaries in order to make a payment in Bitcoin directly from the employer to the employee. The blockchain therefore demonstrates its ability to make the compensation process fast, instant and without intermediaries.
Blockchain, however, should not be viewed solely from the perspective of disruptive technology, but is, in many ways, a fundamental technology on the way to creating a revolutionary new social and economic infrastructure. In HR matters, it has the capacity to modify in depth certain fundamental processes such as recruitment, sub-contracting or even payments; it depends of course on the ability of companies to adopt it more globally.
The HR Tech ecosystem boosted by Blockchain technology
Blockchain demonstrates unprecedented growth and development in the start-up ecosystem and in particular at the heart of HR Tech, which is thinking about break-up use cases such as reliable recruitment tools, a new design CVs, or even improving the employer brand.
Focus on some of the solutions that caught our attention:
- Talao (Talent Autonomous Organization), Toulouse start-up, is developing a solution allowing the certification of personal CV data thanks to blockchain technology. Today, it allows freelancers, and soon employees of businesses, to have secure storage space to certify their professional experience, skills or diplomas. The solution also enriches and improves the professional reputation of candidates. Nicolas Muller, its co-founder, declares that “blockchain is a pledge of confidence, especially in aeronautics where the stakes are high […] Talao must therefore be able to ascertain the nationality of a profile because not everyone is allowed to intervene everywhere ” or just know what “The candidate had experience”.
- Talent Coin aims to supervise and secure the barter of skills. ” Tokenizing talent, this allows companies to retain it internally while adding additional activities, until then not necessarily addressed “Says Alexandra Breheir, its founder.
- HireMatch uses blockchain to help its users reduce the costs of finding, maintaining and hiring new employees.
As we have seen, today, the blockchain is making the ambitious bet of performing time-consuming and costly tasks, speeding up the processes and reducing or even eliminating the intermediaries, in a world where competition between companies has not never before been increased, both by traditional players and by start-ups disrupting the market.
Central New Mexico Community College already offers digital degrees thanks to blockchain technology.
If the blockchain carries with it the power to revolutionize HR processes, the road to accepting this technology as an effective management tool is very long.
An article co-authored with Karen Jouve, digital transformation consultant at Wavestone.
Guillaume has been passionate about Blockchain technologies and cryptocurrencies for 2 years now. He firmly believes in the massive adoption of these in the years to come. Eager for crisp news and always on the lookout for the latest trends in the cryptocurrency market, he enjoys sharing with you all their secrets!