Crypto may have brought us Blockchain, but the relevance of this technology is outgrowing virtual currency. From government deals to trade, (potentially) elections to medical and other relevant data, we are now seeing the recruiting industry moving in this direction.
How does Blockchain affect the recruiting industry? It changes the pace at which the HR department works by getting referrals faster, reducing paperwork, and sifting through false work history. This tech is yet to realize its full potential, but soon it may positively infiltrate every aspect of our lives.
Smart contracts are changing the way companies do business.
Here are ways this tech may change the game in recruiting.
Eliminating the Traditional CV
Traditional CVs have had a long successful run, but they are becoming dinosaurs in a world dominated by tech. Currently, you may find that hiring the best resume writing service for IT professionals is necessary to get you your dream IT job, but in the future, only those agencies that can whip a blockchain CV will survive.
A regular CV not uploaded to the blockchain, which is decentralized, features falsehoods – most of the time – which recruiters only get to know of when they invite a candidate for an interview. Sometimes it is usually too late after they have already made a hire. With CVs on the blockchain, a candidate’s information is automatically updated when they make any career-related moves, from advancing their education to working in a foreign country. This new CV eliminates lies and makes it easy for recruiters to get the right person for a job since you cannot alter information updated by your employer or university. Once uploaded to the blockchain, even social media content cannot be lost or altered – as Twitter CEO said on YouTube. This provides more insight into a recruit’s thoughts that recruiters may find useful.
These are becoming a reality in more places apart from recruitment agencies for their convenience. We are moving to paperless transactions, and so using these contracts that are signed virtually eliminate the time taken to go through the traditional agreement and generally on-boarding a new employee. This tech holds and stores information required for hiring, including psychometrics, payroll details, security codes, and electronic signatures. Lots of paperwork is done away with and an employee takes the least amount of time being integrated into their new environment.
There is just one pickle with smart contracts; they are based on mutual agreement that both parties will do their part as pertains to the contract. That becomes a little hard if one party to the contract feels prejudiced and wants out. They have to prove the legal principle – good faith and loyalty – was meant to be upheld by each during signing. Anyways, this part of the tech is still in development and certainly expected to address this issue in the future. That doesn’t make smart contracts any less effective in the modern workforce.
This development is particularly exciting to those working internationally. Currencies – both fiat and crypto – are easily affected by economic factors that even countries (sometimes) have no control over – case in point, COVID-19. A blockchain-protected payment is one of the surest ways to remove the fear of losing some of your salary due to fluctuating exchange rates. BitWage is one of the crypto-based payment methods where salaries are paid in Bitcoin and then exchanged to local currency using prevailing rates. Of course this is only possible if the organization has adopted any of the existing cryptocurrencies as a way of payment.
How is this beneficial? Those being paid remotely for services rendered in different countries know it takes several days for international transfers to be affected owing to the string of communication required between banks. Blockchain removes the middle man and facilitates the faster movement of cash.
What about Job Boards?
These are likely to be a thing of the past since the best organizations would rather pay valuable candidates to upload their CVs to them than pay these boards where information could be exaggerated. This tech changes the game completely since it sieves out unwanted recruits to only leave desirable ones that a hiring department needs. It also helps a lot that the data stored and updated through blockchain is safe from manipulation and indestructible.
Author Bio: Alina B. is a writer and Blockchain/Cryptocurrency enthusiast. When she is not researching and writing about this financial technology and disruptor or reading books on finance, Alina is travelling, trying out unique cuisines, and surfing.