Checking the authenticity of resumes has always been a matter of concern for recruiters around the world. The biggest challenge in this process is that it requires a lot of time and money for verifying the authenticity of education, skills, work experience, and background information furnished by the candidate.
Traditionally, HR managers conduct background checks by reaching out to ex-employers either by themselves or by hiring a third party Background Verification(BGV) agency. Since the furnished data is really sensitive, it is also important that the data is managed securely not just during the window of the recruitment process but thereafter. With the need to complete the BGV process in a quicker and more secure manner, verification companies have already begun to leverage blockchain technology.
Blockchain is a peer – to – peer network made of encrypted blocks of data and digital history that can be accessed and verified by anyone who has the right to use the network. Blockchain technology with its unique attributes, is finding applications across diverse fields. Projecting the demand for the technology, it is estimated that over 80% of the population is expected to be involved with blockchain technology in some capacity within the next 10 years.
Relevance of Blockchain in Recruitment Process
In the recruitment process, it can be leveraged at multiple levels – to store profiles of candidates, to verify the authenticity of their qualifications and to make the right decisions based on validated candidate data. The utility of Blockchain technology in Background Verification is very crucial in speeding up and securing the overall background screening process. With Transparency and immutability being the core attributes of blockchain technology, it has the ability to unlock value and benefits for both employers and employees.
Benefits of Leveraging Blockchain in BGV process
Blockchain technology can be potentially used to register and store qualifications in a way that can be verified quickly and accurately by successful employers and recruitment agencies. Individuals create a blockchain consisting of the credentials earned by them, such as degrees, diplomas, and certificates. The institutions and organizations issuing them change the signature on these blocks by validating the credentials. The servers are designed to operate with multiple blockchains and are stored on the chain, making it decentralized, distributed and secure. There are multiple applications being developed, that are used to create and verify blockchain – based certificates and other forms of information.
The sole purpose for conducting background checks is to verify the validity of the information provided by the candidate or the employee, be it the applicant’s name, date of birth, social security number, or other information. There is no need for a background check if the available data on the distributed network is pre-validated and completely accurate.
As a result, hiring managers and recruiters will save valuable time in the vetting process and will spend more time on selecting suitable candidates in line with the company culture. In future, candidates could store information in a secure blockchain application, and connect with their potential employer over the network and share their pre-verified documents. Such use of blockchain would reduce the growing list of security risks in current times at the job market, such as identity theft, fraud, hacking, etc.
Future of Blockchain Technology in the Recruitment Process
Leveraging blockchain technology in the BGV process essentially creates a decentralized labor market with developed capabilities that reduces the average cost and lead time for the hiring process. As an extended utility, blockchains can also be used by companies to securely manage data such as details of employees, their salaries, and other key information relevant to their profile. Moreover, the chain reduces the risk of human error and creates a reliable and permanent record that can not be challenged.
Using blockchain technology in the recruitment industry is still at a very nascent stage, but its potential and scope is huge. Moving forward, human resource departments could use this technology to find ideal candidates who have not even applied for their open jobs. Blockchain continues to evolve into a mainstream solution, and applications relevant to staff firms are slowly being developed. In the long run, these applications will create an ecosystem and make blockchain technology an essential component of the BGV process.
ValidateMe Online has effectively leveraged blockchain technology and offers a platform to store information immutably and can be easily verified by anyone who has the rights to view the information. ValidateMe platform imbibes the properties of immutability and transparency from blockchain technology. The platform allows documents and information to be securely shared, but the ownership of the documents always lies with the persons who own them, and only they have the rights to share.