I am sure you must have already heard about blockchain technology by now. Perhaps you did not pay much attention to it, considering it just another buzzword. It is one of the internet's most promising new developments and is a hot topic around the world.
So what the heck is blockchain?
The blockchain is a distributed database, copies of which are held by multiple parties but no one entity owns the data. Each transaction is time-stamped, cryptography secures the data, verified, cleared, and stored in a block. Each new block is linked to the preceding block, thereby creating a chain. To get the program to run, you also have to sign it first. Data can only be appended and once written it can never be deleted thus making data preserved forever and available to everyone. This makes it impossible for anyone to manipulate by faking documents, transactions or other information.
So the blockchain is a distributed ledger representing a network consensus of every transaction that has ever occurred.
Why should we care?
We believe the truth can set us free and distributed trust will profoundly affect people in all walks of life.
Data written on blockchain is:
- Digitally Signed
- Globally available
Thus making "Data and Programs on the blockchain auditable."
How will blockchain affect Staffing and HR Industry?
- Creation of work histories are verified once and cannot be changed
- Allow job seekers to upload their work information in one place and have it accessed by numerous staffing agencies and employers rather than applying individually at each agency
- Creation of educational credentials and training/courses on the blockchain and verified once
- Resume and skillset validation. Especially in IT space where a candidate can claim to have worked on many skill sets and it's hard to validate all
When a recruiter or potential employers see a resume lot of things go through their mind
- Is the skillset on the resume legit? Resume fraud is easy to achieve and unfortunately happens a lot.
- How do I make sure the education transcripts and work authorization docs are not doctored?
- How can I verify his employment history? What if the supplied references are bogus?
This is usually a time-consuming process and it's very difficult to validate credentials of the candidate. The use of blockchain will not only mitigate the time and costs associated with a bad hire but enables the staffing agency and HR resources to become efficient in the whole hiring process. We can also use SmartContract to streamline the whole onboarding, agreements, reporting obligations, tax payments, and so on.