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Blockchain technology is one of the hottest topics of discussion in every industry, as it comes with a myriad of advantages, for both the businesses and their customers. It is a trustworthy technology as all the authorized parties have to validate every change in the blockchain. The blockchain is revolutionary as it has the power to change the landscape of a variety of industries.
In the world of HR, technologies have had a huge impact, as they have caused tremendous disruption. HR solutions had to move from subscription models to cloud-based ones as they are easily accessible. They are also focusing on mobile strategies, as technology is heading in this direction.
As blockchain is showing its potential in various industries, one must wonder, what does the technology have in store for HR? After all, there are several pain-points within HR which require permanent solutions. Blockchain technology holds the potential to solve these age-old problems, revolutionizing the traditional processes of the industry and bringing them up-to-date with the latest trends in technology. Here are five ways which highlight why blockchain technology is the future:
Boost in productivity
The conventional methods and techniques used by HR processes are quite inefficient, which is why businesses don’t always hire the right people for the job. When people don’t have satisfactory skills or experience in any job, it will impact the productivity of the business negatively.
However, with the introduction of blockchain technology, productivity will witness a considerable boost. The reason is that blockchain technology will match the performance and skills of employees to positions where they can make a difference. Small and medium-sized enterprises (SMEs) will witness all the benefits of blockchain technology as they don’t have to spend a large number of resources to find the right people. As the workload reduces, they can spend their time focusing on improving their services and expanding their business.
Elimination of functions for back-office
The back-office tasks of HR are all the intermediary transaction functions the department has to handle on a regular basis. Some of these transaction functions are proving the details for the purchase order, receipts, and reconciliation. As businesses spend a portion of their resources for these functions, eliminating them will come with a host of advantages.
For starters, the department won’t have to take a lot of time to complete administrative tasks such as transactions. As businesses will reduce the time for every transaction, they can direct the focus of their employees to more important functions. It gives the HR department additional time to implement numerous training sessions, which will improve the skills of their employees. Also, the employees will have more free time, which they can use to attend conferences. The next advantage of elimination of functions for the back-office is that it decreases the expenses. Businesses can use these extra resources for improving customer and employee satisfaction.
Improvement in hiring processes
The hiring process will witness significant transformation with the integration of blockchain technology. Employers will have access to a trustworthy and comprehensive record of all employees with the help of blockchain technology. It will store information such as workplace performance, training, skills, and education.
The advantage of this is that people can convert their experience and training into value, improving their chances of getting hired by employers. As artificial intelligence and analytics are growing considerably, employers can use these technologies to find individuals who have the right expertise and skills to fill up positions in their businesses.
Payments across different borders become easy
As there are several multinational companies in the world, they are facing problems in dispersing payments across different borders. Also, these companies have to deal with third-parties, who charge them for such transactions. As blockchain technology eliminates third parties, it becomes easier for companies to pay their employees in different countries. Also, blockchain allows companies to make their currencies, which they can use to transact with employees and vendors across different nations. Once central banks become a part of this blockchain, the companies can convert their currencies into official ones, making convertibility and exchange easy.
Significant reduction in fraud
The last area where blockchain will impact HR is security. HR departments have access to employee information and deal with a large number of financial transactions regularly. These are prime targets for cybercriminals, as these types of data are extremely valuable.
Blockchain will improve security significantly, as it becomes harder for cybercriminals to access this data through illegal methods. Even if they try to change the data, it requires the approval from all parties in the blockchain.
These are some of the ways how blockchain technology can revolutionize HR departments all over the world. As growth in technology is causing concern among employees regarding privacy, it becomes all the more important to turn towards blockchain-based solutions!
Brought to you by BlockchainSingapore.