Blockchain, many people will simply understand it as the basic technology of cryptocurrency. But in addition, blockchain also has considerable potential to completely change the personnel industry. Our team and many customers are currently studying this technology, hoping to solve the major challenges that have plagued the personnel industry for a long time, such as low efficiency, leakage of sensitive information and difficulty in accessing talent pool.

How does blockchain reform the work of personnel industry

A set of tamper proof digital database

Personnel department is mainly responsible for processing and verifying all kinds of sensitive personal and financial information. In this regard, the safe storage of information has always been a long-standing problem for personnel service enterprises, and the current cloud storage specification makes the data vulnerable to tampering and hacker attacks. Blockchain technology can greatly reduce the possibility of unauthorized device access and information tampering, and even completely eliminate this possibility in most cases.

Another big problem for personnel experts is to verify the qualification certificates of applicants. Traditionally, this is a complex task that takes time and effort. But now, in theory, blockchain can completely eliminate this demand. With the help of blockchain, we can build verified digital archives, allowing personnel departments to access important information such as personal identity, work experience, background investigation, reference materials, school transcripts, salary records and personal certificates and licenses.

Before the information is added to the blockchain, it needs to be verified at the source, or by educational institutions, former employers and responsible units. This whole process control makes counterfeiting almost impossible. The digital archives system based on blockchain can help potential employers and recruiters save a lot of time, significantly improve the reliability of resumes and qualifications submitted by applicants, greatly enhance the implementation efficiency of personnel team, and save a lot of time wasted in filling in countless basic information for applicants.

Assess the applicant’s behavioral characteristics and skill level

Blockchain can also integrate other indicators into the digital database, including cognitive ability, personality traits, behavior, habits, and even the skill level obtained from personal online evaluation. Today, our life has been inseparable from intelligent devices, which contain numerous anonymous user data. We can use these data to build a digital extension about users, and even replace the tedious behavior and skill evaluation process in the past to a certain extent.

Many friends may think that it is far fetched to collect data from personal intelligent devices to evaluate personality, cognitive ability and skill level, but in fact, many work scenes have begun to adopt such a processing scheme. With the rapid development of technology, employers have been able to track and record employees’ work content, whereabouts, and who they met.

Here are some specific methods:

1. Install real-time employee tracking system, and use ID badge to monitor working time, rest time and other behavior content.

2. Use the data, subject line and time stamp in e-mail and calendar metadata to interact, so as to gain insight about employee engagement and work efficiency.

3. Evaluate the productivity and working hours of employees by tracking their online browsing history, detecting idle behavior, saving screen shots and remote monitoring computer screens.

These information can be automatically filled into the database to help enterprises quickly measure employee engagement, productivity, work ability, habits and personality. Some applicants may be willing to include these certification and evaluation conclusions in their own blockchain, so as to prove their excellent working ability to future employers.

Of course, the practice of extracting factors related to work ability through personal intelligent devices and storing them in digital archives will bring new concerns: how much private data is the public willing to add to their own digital archives?

The Enlightenment of temporary contract economy

With the rise of global temporary contract economy, personnel enterprises are employing more and more freelancers and contract workers. Blockchain is expected to alleviate the new challenges brought by the change of labor structure through real-time information sharing, cross-border payment transactions and smart contracts.

Blockchain can greatly simplify daily tasks (from salary coordination to payment), thus eliminating the high dependence on back office functions. Remote employees will also benefit from real-time payroll processing and cross-border payment, and will no longer be affected by the high handling charges imposed by third-party intermediaries.

Contract has always been the most concerned object of personnel enterprises and temporary contract employees, and blockchain can greatly improve the efficiency of contract execution. Smart contract is sufficient to eliminate most of the tasks related to traditional document management, so as to supervise, execute and verify the strict implementation of contract content in a digital way. All participants can also take this opportunity to ensure that the rights and interests of employees are protected, and promote each established requirement in the way agreed in the contract.

Based on the present, looking to the future

From education to supply chain, and then to health care and government agencies, the early application of blockchain technology has appeared in various industries. According to Deloitte’s global blockchain survey in 2019, 77% of cross industry enterprises believe that if they do not adopt blockchain technology, they will soon lose their competitive advantage; while 40% of the enterprises surveyed plan to invest at least $5 million to develop blockchain technology in the next 12 months.

However, all this is still a long way to go before blockchain technology ushers in real glory. In July 2019, a survey on blockchain adoption found that more than half of the respondents said that the practical application of blockchain projects was much more difficult than expected.

For personnel enterprises, most blockchain applications are still in the stage of theoretical verification. However, the potential has been widely recognized. With the transformation of blockchain from a potential but immature technology to a mainstream solution, personnel enterprises will quickly follow up to enhance their market competitiveness. We look forward to seeing the future personnel industry take on an unprecedented new look with the blessing of blockchain technology.

Editor in charge: CT

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