The blockchain is a disruptive technology. It has the potential to change many aspects of our future lives. Even if governments or corporations would try to stop it, it is impossible to completely eliminate due to the decentralized nature of the technology.
According to the Harvard Business Review,
“With blockchain, we can imagine a world in which contracts are embedded in digital code and stored in transparent, shared databases, where they are protected from deletion, tampering, and revision. In this world every agreement, every process, every task, and every payment would have a digital record and signature that could be identified, validated, stored, and shared. Intermediaries like lawyers, brokers, and bankers might no longer be necessary. Individuals, organizations, machines, and algorithms would freely transact and interact with one another with little friction. This is the immense potential of blockchain.”
Blockchain can also revolutionize human resources. A report by PwC explains how.
NO MORE BACK-OFFICE
According to PwC, a back-office is the intermediary functions of a transaction. This includes providing a purchase order, providing a receipt and reconciliation.With Blockchain it is possible to remove these intermediaries.
The reduction in transaction time allows employees to focus on important business-related tasks instead of paperwork.
This would also greatly reduce the cost of transactions as many hours of labor are passed on tasks that can easily be automated through the use of blockchain.
INCREASED EFFICACY OF THE HIRING PROCESS
A database of potential employees will be available to the ones responsible of hiring. According to PwC, this database will contain “a comprehensive, trustworthy records of these person’s education, skills, training and workplace performance.”
As much as this database will facilitate the work of the people responsible for hiring employees, it will also help workers showcase their skills and reach a larger audience for their job research.
DECREASE OF FRAUD INCIDENCE
HR departments are responsible for a large quantity of personal information concerning their employees. This data is susceptible to corruption through hacking and phishing attacks.
With blockchain, the data can be distributed throughout multiple different nodes, which makes it almost impossible to hack. This is also true for internal hacks as a blockchain can limit the access of employees to the data.
EASIER INTERNATIONAL PAYMENTS
Blockchain allows for “global” currencies to be created to make the process of international transactions more efficient. This will make it easier to make cross-border transactions in a faster and cheaper way.
The system would then allow the companies to transfer their funds into fiat currency with barely any fees.
Smart contracts will also allow companies to verify transactions and confirm agreements without the need of an intermediary or mediator.
CONCLUSION
Every year, innovations are introduced into workplaces in hope to make the business processes more efficient.
Blockchain is a digital solution which could bring improvements in HR, but also in many other areas of business such as accountancy and managerial business models.