Despite being in the nascent stage of development, blockchain technology has started disrupting conventional practices across the business disciplines. Be it finance, marketing, or operation; we are witnessing novel methods of conducting the same, old business processes, all thanks to the adoption of blockchain by companies across the industries. Many experts are also exploring the impact of blockchain on the human resource function and trying to make sense of how the adoption of blockchain will require the organizations to re-strategize their personnel-management department.
Possible Areas of Impact
Resume on Blockchain: The most prominent effect of integrating blockchain in practices related to human resources will be in the form of new ways through which data and information will be shared between employees and employers. For example, employees can use the blockchain platform to maintain the record of their educational qualifications and employment history which can be readily assessed and verified by the employer. Issues related to authentication of the information will be minimized as the very basic fact that resume is on distributed ledger makes it genuine in nature. There are many technology companies currently working on to develop specialized programs to authenticate the resume with the help of blockchain technology.
Smart Contracts: Digitally transferring the data between different parties involved in the business – which is popularly known as smart contracts – is another way organizations can use blockchain specific to the human resource department. This application is especially relevant in today’s time as more and more company are switching to contract workers. Using the blockchain for implementing smart contracts will lessen the chances of any kind of defraud and forgery, making the system more transparent, assuring, and open.
The blockchain could also play an important role in payroll especially when it comes to transferring in the money internationally. In fact, global payment is one of the most widely used applications of the blockchain as it omits mediators such as banks and financial institutions. Efforts are on in this regard to develop a global payment transfer system that will enable the payment in cryptocurrencies to be transferred to the employees in their own fiat currencies.
These three are the prominent cases where the blockchain technology can change the scenario in the human resource discipline although we expect more new areas to emerge in the future as the technology grows and evolves. It is important to note that along with the opportunities, there are many challenges that blockchain has to overcome before it becomes mainstay technology of the future. The biggest deterrent in its adoption path is the lack of a regulatory framework, and even though some countries have regulated the cryptocurrency and blockchain technology, a chunk of nations are still deliberating on the ways to do that. Even the regulatory mechanisms are not uniform which may create some issues in the future. Another important concern related to blockchain is the privacy of data as the technology works on the principle of open-ledger networking nodes (except corporate blockchain). Despite all the hurdles, experts are unanimous on the enormous amount of impact blockchain will have on the businesses in medium- to long-term future. One report predicted that annual revenue generated by blockchain businesses by 2030 would be around $3 billion. All these facts are indicators that the future belongs to blockchain and as this technology matures and evolves it will have a huge impact on businesses.