Blockchain and HR
Like any other business problem - Blockchain should only be applicable if required. If the things can be solved by non-blockchain solutions ( RDBMS), there is no need to go for a decentralized distributed ledger. Having said that, I think followings are some areas where blockchain can be useful -
- Document verification
- Background check / verification
- Smart contracts on policies / agreements / contracts etc.
- Verifying and assessing the education, skills and performance of potential recruits – enabling those recruits to be allocated to the most appropriate roles.
- In turn, giving people a comprehensive, trustworthy blockchain-based record of their education, skills, training and workplace performance.
- Managing cross-border payments and employee mobility, including international expenses and tax liabilities, with the potential for organisations to create their own corporate currencies.
- Boosting productivity, such as by automating and reducing the burden of routine, data-heavy processes like VAT administration and payroll.
- Enhancing fraud prevention and cybersecurity in HR, including both employees and contractors.
This article explains this a lot -
If we understand employees similar to vendors, blockchain supports to connect single information. For example, certifications, diploma, work-experience, etc, but also more operationally daily working-hours, breaks, holidays, sickness-days, etc. This makes it clear that it is not only an efficient technology, but also includes ethical pitfalls, as it make the employee quite transparent.