5 Reasons Why Blockchain Tech is Set to Accelerate the Recruitment Process

In recent years, blockchain technology is gradually revolutionising the methods by which employers and hiring agencies identify, assess, and verify potential candidates for the job. Considering the level of security blockchain offers, global MNCs are increasingly moving towards decentralized ledger for maintaining the integrity of data, such as employment background or academic credentials. According to Blockdata research in September 2021, 65 of the top 100 public companies are actively developing blockchain solutions and to brief it in Lucas Schweiger’s words, “It’s clear that blockchain adoption is happening amongst enterprises, with a growing interest by those who have been sitting on the sidelines”.

Coming to the choice of Distributed Ledger Technologies (DLT), Hyperledger Fabric is the most preferred one for the top 100 public firms followed by Ethereum, Quorum and Corda.

What is Blockchain and how it can impact the recruitment industry?

Blockchain can be defined as an immutable decentralized, distributed ledger that maintains and records data across multiple computers, known as “nodes”. Mitigating concerns around privacy, control, and security, the state-of-the-art technology allows organizations and individuals to confidently share access to the same data in real-time.

To know the true impact of Blockchain on the recruitment process, consider this scenario. Assume yourself the hiring manager and for a job requirement, you’ve found a suitable candidate with relevant experience. Upon completion of the interview, you need to round off their referrals before releasing the offer letter. At this juncture, instead of chasing up old employers or universities for background verification, you can have instant access to the candidate's work and educational history, along with other credentials in a secure digital ledger. This makes the hiring process fast, effective, and hassle-free.

Why Blockchain is set to accelerate the recruitment process?

1. Guaranteed Accuracy 

All the digital credentials of the candidate, updated and verified into the blockchain are guaranteed to be authentic and tamper proof, therefore providing an immutable record for employers, candidates, and agencies. Every part of digital data is maintained as a permanent up-to-date record of the candidate’s professional career and educational background.

2. Bridges the gap between fresh college graduates and employer

Fresh graduates applying for jobs look to leverage their co-curricular activities, internships, event participation and research work in order to stand out from the crowd. In addition to academic credentials, if such activities and their outcomes are also stored on a decentralized ledger, it makes it easier for employers to verify them and also provides the much-needed edge the candidate is looking to gain from. This method of skill-based hiring levels the playing field among candidates and makes it easier for hiring managers to identify skills, eliminate bias and hire efficiently.

3. Upgraded Security

The decentralized, distributed nature of the blockchain strengthens pre-employment screening security and reduces the likelihood of identity fraud. Verified credentials of the candidate are replicated across the distributed ledger and cryptographically secured. Throughout the process, the user is in control and chooses exactly what to share about themselves and with whom.

4. Easy, Fast &amp; Transparent Contract Payments

With “Smart Contracts”, Blockchain Technology can revolutionize the way human resource professionals track workflow and make payments. Positioned within a blockchain, these computer programs can be deployed automatically and instantly pay someone for the work they have done once the recorded parameters have been fulfilled.

Take freelancers for instance. Through “smart contracts”, payments can be made to those who have been booked for a set amount of work/hours. As soon as the task gets fulfilled, the program swings into action and processes the requisite payment, without any intervention from human resources. This can deliver huge efficiencies and cost reductions to the payroll team.

5. Super-Fast Employee Recruitment

Blockchain can hold all information on contractual staffing such as employee identity, payroll details, electronic signature, security access codes and performance reports. In theory, a candidate could be hired immediately and even get their contract and payroll number assigned in an instant. In the temporary work contracts based on blockchain and smart contracts, the agreements between employees and business data are analysed automatically to facilitate the screening of contracts, making the procedure fully automated, and allowing full compliance with contractual contract laws.

For those recruiters who want to eliminate the admin burden and focus on communication strategies like employer branding, blockchain can make your work much easier.

VeriOnce – Digital Blockchain Platform for Verifying Credentials

Veri Once is committed to combatting credential fraud by providing decentralized credential issuance and verification services to students, jobseekers, employers, and educational institutions around the world. Powered by Hyperledger Fabric, the highly rated blockchain framework, the platform verifies candidates’ credentials and delivers a legitimate structure, thus benchmarking their educational qualifications and work experience on par with global standards.