Blockchain technology is an encrypted digital ledger of public records organized into groups of data (blocks) and distributed over networks. This type of technology is best known for being the backbone technology for the digital currency bitcoin and is a way to store personal information in a secure manner and make it available to anyone with permission from those individuals.
According to experts at the Human Resource Executive’s 20th Annual HR Technology Conference & Exposition, blockchain technology will come to the HR industry within the next 18-24 months, with companies like Microsoft and IBM already making huge investments in the technology. The potential HR uses of blockchain technology could be limitless.
Industry experts believe that blockchain technology could be particularly useful in recruiting and payroll.
Blockchain technology could make it possible for employees to fully control data about themselves, a concept referred to as “self-sovereign identity.” For example, a recruiter could use blockchain to verify a candidate’s claim of achieving a certification, but the candidate would first have to release access to a blockchain entry cross-signed by the certifying body, which gives the candidate greater control over such data and also reduces the amount of time recruiters spend verifying information.
Payroll can be costly and a time-consuming process for managers because of the various banks and third parties involved in the process. Blockchain technology simplifies and standardizes payroll by eliminating the middleman, which can be incredibly useful for employees and payroll managers alike.
Blockchain technology is in its infancy, but with its versatility and potential, it may become a large component of the HR industry in the near future.
This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal or medical advice. Readers should contact legal or medical counsel for advice.