Every now and then, new technology is introduced, promising to be “disruptive”: it happened with artificial intelligence, and then the cloud, and then with the Internet of Things, then again with 3D printing. Now, with blockchain gaining full steam, varying industries want to have their fingers in the pie, too.
To the uninitiated, blockchain technology involves the process of transporting data from point A to point B safely and privately. Every piece of data that travels by way of blockchain is distributed, stored, and encrypted on a decentralized ledger, available for everyone to verify, thereby eliminating chances of fraud. It’s basically a process of exchanging data infused with complex encryptions to make it virtually impossible for hackers to manipulate.
One of the first industries to adopt this innovative technology is, unsurprisingly, finance. With blockchain, the transfer of funds between parties can be expedited and without the intervention of banks. Healthcare has tapped into it, too. Hospitals and other medical institutions use blockchain to help patients and their physicians securely transfer sensitive medical information. Patients have the option to assign rules as to who can access their medical data so that no unauthorized party can access their private information. Tech writer Daniel Ling also writes that blockchain can be used in politics, especially when it comes to verifying and confirming electoral results. Blockchain helps eliminate the chances of fraud and cheating, making it useful for nations in which accusations of election tampering are rampant.
Staffing happens to be the latest industry that’s starting to harness the power of blockchain. From administrative efficiency to unhackable sensitive information and instantly accessible talent pools, it appears that blockchain may contain the answers to problems that have been plaguing the staffing industry for decades.
For starters, blockchain can make it easier for recruiters to verify a candidate’s credentials. In a survey data curated by Business News Daily, 1 in 10 people admitted to embellishing their resumes. With blockchain, it would be virtually impossible for applicants to add false information on their resumes as blockchain-powered platforms can have all their personal and professional information like previous addresses, employment history, education certificates, and more. This, in turn, will instill more confidence in the employer knowing that they have accurate information that allows them to make smarter hiring decisions.
Blockchain can also facilitate the process of employee onboarding. Since it can store information like electronic signature, payroll details, and performance reports, a candidate can be employed in a company in an instant as recruiters already have access to most of their pertinent information. This could pose a problem to recruiters who thrive on the paperwork aspects of the business, but it could help those who want to reduce administrative duties.
But perhaps the most useful application of blockchain in recruitment is with staffing, especially in the IT industry. As previously highlighted by Patrick O’Neill, leaving an IT position can be detrimental to companies, making staffing a crucial concern. By bringing blockchain into the equation, organizations can match with the right candidate quicker. According to data collected by Forbes, the average cost of one bad hire is $14,900. Blockchain can solve that by giving employers a complete overview of a candidate’s entire employment history, qualifications, references, performance reviews, and more. This cuts down the vetting process, allowing employers to land on the right candidate best suited for the role much faster.
With all these being said, blockchain is not without its kinks. Despite all the listed potentials, many of these applications are still in the theoretical change. However, it’s only a matter of time until it completely penetrates the staffing industry and changes it for the better.
This is a guest piece written exclusively for PSCI by Willow Reed