Use Case: 5 Ways Blockchain Technology Can Revolutionize HR Management (hrtechnologist.com)

Marie Fincher Digital Content Director, Trust My Paper 



Full Bio 


 There are clearly many ways in which blockchain technology is and will continue to impact the HR niche. This piece will outline the key ways in which HR pros approach many of their daily tasks.If you google ‘blockchain technology’, you could spend hours perusing the results, never finding anything related to HR.

That’s a shame because blockchain absolutely has the power to create disruption in the HR space. In fact, it might just revolutionize the ways in which HR pros approach many of their daily tasks. This piece will identify five ways in which blockchain can impact HR in ways that could be useful in your organization.


  • Blockchain Can Protect HR from Cyber Criminals

Human resources management involves dealing with a lot of very sensitive personal and financial data. HR departments may receive and store information relating to pay, health insurance, finance and banking, disciplinary records, and more.

All of this is at risk of being exploited.With blockchain, the ability of criminals to gain access to that data is reduced. In many cases, it’s virtually eliminated.

Because records stored on the blockchain are decentralized, there’s no single place where hackers to access and corrupt data. In addition to this, any changes that are made must be authorized and verified.


  • The Recruiting and Hiring Process Will Be Transformed by Blockchain

Currently, standard methods of seeking out candidates, determining whether or not they are worth pursuing, conducting the pre-hire verification process can be painfully slow. Worse, it can be fraught with inaccuracy and the potential for fraud.

For example, potential hires may tweak their resumes according to the requirements of each job that interests them.

They could even fabricate references. Hiring managers may wait days before hearing back from references, and some companies are reluctant to provide any detailed information on past employees due to liability purposes.

Now, imagine if employee records were stored on the blockchain. Applicants could provide potential employers with permission to access their blockchain based employment data. This could include employment history, letters of recommendation, educational records, and more.

Steven Paris, a recruiter at Trust my Paper says, “There’s a human element to employment verification that can be extraordinarily frustrating and error-prone. Blockchain can help take that element out of the process. This means that employers and applicants can get the answers they need quickly. No more fielding emails from applicants as we wait for their former employers to provide feedback about them.”


  • Smart Contracts Will Facilitate Payments to Gig Workers

Gig and contract workers must often wait to be paid as their work and invoices undergo a manual verification process. Companies that adopt blockchain can automate this process and enable these workers to be paid instantly through the use of smart contracts.

With a smart contract, the business and worker can establish the criteria for which pay is earned. When those criteria are met, and the smart contract is satisfied, pay will be distributed instantly.

For example, a smart contract can be designed so that payment is released to an independent truck driver the moment the cargo he is delivering arrives safely at its destination.

Not only does it help contractors receive payment automatically, but it can also protect businesses from fraudulent invoicing.As the gig economy grows, this will make companies more attractive to remote workers. This is going to become more important over time as companies will grow (or not) based upon their ability to attract skilled workers from across the globe.


  • Blockchain Can Improve Accuracy of Time and Attendance Date

Simply put, blockchain helps to ensure that records (of all kinds) are accurate and impervious to unauthorized changes. This means that it can be used to help ensure that information collected through time and attendance systems is accurate and that it can’t be tampered with.

ID2020 is already using blockchain technology to store and verify information such as biometric data. HR departments can use similar technology to improve the veracity of their payroll and time tracking systems as well.


  • Companies Can Use Blockchain to Help Pay Workers in Cryptocurrency

Should HR managers ignore the primary reason that blockchain exists in the first place? Perhaps not. If you only hire workers who live in developed nations, the idea of implementing crypto-based payroll may seem entirely unnecessary. Paying in standard, fiat currency only makes sense.

However, with businesses that hire on a global scale, paying in Bitcoin, Ethereum, or other cryptocurrencies can make sense. Workers want to be able to access their money, move it, and use it to buy goods and services with ease.

For someone who lives in a nation where the currency is devalued, banking systems are untrustworthy, or the government has caused other roadblocks, this isn’t the case. By offering crypto-based payroll systems that are backed by blockchain technology, businesses can attract more workers on a global scale.


Final Thoughts

When it comes to the potential for blockchain to create disruption, HR really doesn’t receive that much attention. In spite of this, there are clearly many ways in which blockchain is and will continue to impact this niche.