“The secret of my success is that we have gone to exceptional lengths to hire the best people in the world.” — Steve Jobs
From resumes to networking, companies need to connect with the best talent possible. With the volume of resumes that a company has to review, and the sheer number of employee verifications that the Human Resource department (HR) has to complete—it’s nearly impossible for a company to completely vet all potential candidates.
The Society for Human Resource Management, SHRM, provides a look at the workflow that HR undergoes to find a candidate who will be set up for success. The process that most employers use to find and select the best talent possible for an open position include the following:
- Post open positions on career sites to solicit resumes.
- Pre-screen candidates who do not meet basic requirements.
- Screen candidates who lack the desired level of skills and competencies for the job.
- Interview the candidate to perform an in-depth assessment.
- Verify the candidate’s employment record and qualifications.
- Select candidates with the highest potential for job success.
While there are some things that blockchain can’t do, there are some things blockchain can do well. Managing resumes and vetting candidates is one area for which blockchain is well suited. This article will focus on blockchain use case applications focused on vetting the ideal candidate.
Blockchain for HR
Ashik Ahmed, writing for Forbes, believes that blockchain will make resumes and social media connections redundant. While a seemingly overstated prediction, blockchain nonetheless may be “perfectly capable of making both old-school resumes and career networking websites like LinkedIn obsolete,” he says. “Instead of an applicant writing up a description of where they’ve worked and what they’ve done, blockchain transactions will simply store all of their employment history.”
Jackie Wilesevaluated blockchain for HR use case examples in Gartner. She says that blockchain can be developed to vet an employee. Blockchain will be used for background and employment-history checks. In a distributed blockchain network, applicants will be able to acquire virtual credentials. It will create a token for their identity. This will provide an “immutable record of their work history,” she adds. “Prospective employers who tap into this blockchain eliminate the chances of fraudulent applications.”
By 2022, more than 40% of large organizations will be piloting or using HR solutions enabled by artificial intelligence (AI) or blockchain, and every major HR process will include AI or blockchain..https://t.co/Nz30e9yvID#Gartner #HR #Reimagined #AI #Blockchain #Productivity pic.twitter.com/5INjfquMNF
— Cindy Clarissa (@CindyClarissaA) November 11, 2019
Blockchain to Validate Candidates
So just how will blockchain technology validate candidates? Because blockchain uses distributed ledger technology, it can store data on a decentralized system available to HR departments everywhere. Blockchain is a system that stores data in blocks connected to each other without a centralized administrator. The blocks are distributed across all computer devices on a network. These are referred to as nodes.
Every node on the blockchain verifies each new addition of data to the system. The data is immutable, creating a high level of trust. According to Chiradeep BasuMallick in HR Technologist, HR will be able to use blockchain technology to vet candidates. The system will be able to reconfigure a resume where a candidate’s qualifications and experience milestones are stored on individual blocks.
BasuMallick says that there are three attributes of blockchain used to secure resume data.
- Immutable: Once a candidate’s work history is entered by the candidate—it can’t be modified or deleted. This minimizes “falsification risks”.
- Auto-verifiable: The data is automatically verified, thereby freeing HR’s time from having to manually check each candidate’s background to identify discrepancies.
- Privacy: Blockchain employee verification can hide personal details of the verifying party, thereby mitigating the possibility of bias.
With the ability of blockchain to permanently store an employee’s work and experience history on blockchain, HR will now have the tools to be able to find the right candidate for the right role.
“Without phone calls, emails or stacks of paper,” says Wiles, “the right talent can be authorized and brought in at each relevant step in the process, given access to the information and resources they need only for as long as they need them.”
When will we be able to see blockchain functioning as integral part of HR? That is dependent on adoption. According to BasuMallick, “blockchain employee verification software would need buy-in from a variety of stakeholders willing to offer credentials and testimonials, to work across organizations, disparate industries, and job roles.”