Easily one of the most revolutionary technologies in recent times — Blockchain is slated to disrupt so many industries that its contribution can completely change the way we work and how we see things. Bitcoin, Blockchain’s virtual currency, brought the technology into the mainstream because of its ability to track transactions without a central authority.
In an era where trust is held very highly, Blockchain is super appealing because of its ability to validate, authenticate and secure information.
This is no small improvement on what was working earlier, especially in the recruitment industry where a simple verification process takes weeks and the same is repeated over and over when applying for a new job, a burden on both the candidate and the business that is trying to hire.
How exactly can Blockchain be used in the recruitment industry?
To understand how Blockchain can help in the recruitment industry, you need to know how Blockchain works. Let us give you an easy explanation of how it works.
Blockchain is a public digital database which leaves a trail of validated facts, it could be anything from documents to money. Each transaction and the accompanying details are validated. Anyone with access to the ledger receives the information and it is impossible to tamper with it since each block of information references the block before it.
Therefore, industries like banking, insurance and manufacturing are clamouring to get their hands dirty with Blockchain as it provides privacy and security standards that were unheard of earlier.
What kind of a dent is Blockchain making in the recruitment industry?
A huge part of the hiring process involves ratifying the documents, certificates and other information that the candidate gives to the potential employer. This process is usually done by the HR team or is outsourced to a third-party which verifies the information using various methods.
The fact that candidates these days would have worked with many companies and would have had different varieties of experiences, both personal and career-wise, makes it much more difficult to track and validate the information given.
Since Human Resources is a data-intensive function, Blockchain would find newer ways in which it can serve this domain as data here is tamper-proof.
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The background verification process that is practiced today is — human, time and research-intensive, and can be an exhausting process not only for the candidate, but for the company as well.
What happens with the involvement of Blockchain in this process is that all the candidate’s records, including academic certifications, ID proofs, employment history, salary slips, and more such details can be stored in a safe platform.
This information can be given access by the candidate to potential employers whenever the need arises. This removes the need for 3rd party verification services which will only add to the recruitment costs and saves truckloads of time because there is no necessity to repeat the entire process again.
In fact, this eliminates the huge dependency on background verification agencies and reduces the need to go after chasing previous employers, educational institutions and so on.
When a business uses blockchain to validate the information of a candidate like educational background, salary proof, age proof, employment details and so on, it ensures a facile on-boarding of candidates into the company fold without an exhaustive set of procedures.
Recruiting usually works this way where they either hire a freelancer or a recruiting firm whose job is to take care of sourcing candidates to getting information about candidates who match the skillsets required for the job.
When you involve Blockchain into this equation, it becomes much more efficient. Imagine a recruitment marketplace on Blockchain which gives participants points for each action that they take. Points could be earned for referring friends, adding information of a set of people with a specific skillset, sharing job openings and so on.
Since the participants benefit from this, they are a lot more active and employers get access to a huge talent base and recruiters get paid too. It is a win-win situation for everyone involved.
Saves time in the recruitment process
With the drastic reduction in reference requirements, thanks to the public digital ledger that pre-validates information (read Blockchain), the entire process of recruitment, including onboarding of candidates becomes extremely fast.
Blockchain which gives validated content translates into higher quality of talent pool being available in the market. Using Blockchain in the recruitment industry will ensure that the information that businesses get to look at during the application process or any other stage will always be correct, because it cannot be tampered. This speeds up the process incredibly making it easy to wade through a huge number of applicants to find your ‘purple squirrel!’.
Recruiting is an extremely intensive as well as complex mechanism that involves a lot of stakeholders and truckloads of data. With the help of Blockchain technology, the possibilities in the recruitment space are endless, and will eventually help in creating a professional and efficient system that helps both the candidates and the recruiter. Blockchain is more than just a ledger that holds data, it could be a huge game changer in the field of recruitment and its usefulness will only be established more in the coming days.