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So if you’ve followed my some of my earlier writings you’ve heard me mention “Legacy models,” and the fundamental breakdown in the Recruitment industry. But what does it mean to be “broken?” In truth, it goes beyond slow processes and outdated screenings. As it turns out, the problem is much worse than that.
I hear the argument a lot when I go to blockchain conferences.
“Why does HR, Recruitment need a blockchain?”
No really, I get grilled on this daily. Truth is right now Blockchains don’t scale well and building a platform like ABL will require both an on the chain and off chain component to the solution, but Hr and Recruitment needs a blockchain more than human error, it goes right to the core — trust.
Unless you’re neck deep in the industry, you may not understand how it works. So let me quickly break it down. Recruiters are incredibly expensive — I’m talking 20% commission of hired staff’s salary expensive. If you need to hire en-mass, then you are basically hemorrhaging money. Taking it another step further, there is a fundamental disconnect between the needs and the wants of the recruiter versus the employer. This is because you as the employer want top shelf liquor cabinet, Barry Bons, knock-it-out-of-the-park quality candidates that are going to be amazing fits for your company culture.
The recruiter, on the other hand, wants to get paid and gets paid based on the being the first one to deliver, not based on the quality of the candidate. These guys are basically mercenaries for hire, soldiers of fortune. What’s it to them if you need to go through the process of hiring again and again?
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These relationships are doomed from the start, so is it any wonder that hiring managers continue to grow more and more dissatisfied with the quality of results? Don’t believe me? I was just trolling on LinkedIn when I found this gem that outlines the problem.
Essentialy, dealing with recruiters can end up looking like this
This gentleman’s problem isn’t an isolated incident; it’s reflective of an entire industry. Now, of course, there are exceptions, there are good recruiters that have both the heart and the grit to pull off both quality and efficiency, but trust me, they are few and far between.
The ability to generate inherent trust is one of the most significant values that a blockchain can bring, but it is only one link (in the chain (forgive my pun)). Once the terms of the agreement are executed in a smart contract, it acts unalterably and indiscriminately until the conditions are met. Not to mention there’s the entire component of human error and efficiency that blockchain solves, of data integrity that scream for the value that distributed ledger technology can bring.
So yes, scaling is one of the biggest barriers to the technology, but this single barrier in of itself does no discredit the fact that HR, perhaps just as much as healthcare, or finance, need a trustless solution now more than ever.
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