E-qainfotech

How Blockchain-Enabled Employee Verification Can Help Gig Economy

August 20, 2020
Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Blockchain-Enabled Employee Verification

Working remotely has become the new normal. In the USA alone, 36 percent of workers freelance in some capacity. Independence to do their preferred work on their own terms is one of the biggest reasons attracting workers towards the gig economy. In fact, according to a news report, freelancers are making more money than an average worker in the majority of the countries.

The workforce of the future will work for different businesses and have multiple jobs. With the rise of online aggregators in various sectors including hospitality, transport, and other businesses, the new age shift is happening at a very rapid pace.

Trust and Safety

As businesses evolve their workforce by hiring more freelancers, it has become crucial to ensure the safety and competence of these human resources. In comparison to permanent employees, the hiring procedure of freelancers is simpler and shorter. Many organizations even don’t have a formalized hiring process in place for the recruitment and management of freelancers. But as more workers are hired as freelancers, the risk of skipping the background verification is also getting bigger.

With more unverified people gaining access to sensitive data, financial assets, internal information, and customer records; it is imperative to secure organizations and their customers from any breach or fraud. For many organizations and internet startups, employees are the face of the company. For instance behavior of a cab driver or delivery staff directly impacts the public image of those organizations that employ them.

Hence, investing in a robust background verification policy has become essential.

Challenges Faced By Traditional Background Verification

Organizations that are delivering traditional verification services are also facing a lot of challenges to deliver flawless checks due to the absence of credible data.

Data accuracy of education certificates, work experience, or even police verification has become a big challenge. And sometimes, data of freelancers is not accessible in time due to inherent obstructions in the process. Despite these hurdles, large corporations are spending anything between $1.5 to $2 million on the employee background verification process. But small startups cut corners and do not always follow the stringent process of background checks due to budget limitations.

Several organizations do 2-3 background verification checks. The entire process takes weeks of time and a lot of resources. This also translates into slower onboarding and impact on the bottom lines of the organization.

How Blockchain-Enabled Employee Verification Can Help Businesses?

Blockchain or distributed ledger is a system to store heaps of data in blocks connected with each other without any centralized administrator. All the nodes present on the blockchain verify each and every new addition.

How can it help in employee background verification?

You can reconfigure the entire employee resume with all the experiences and qualification milestones saved as an individual block. Here is how it will benefit:

  • Once the data is entered, candidates cannot alter it; minimizing the risk of fraud
  • Auto-verification of data to prevent HR from checking each candidate’s background data manually
  • Hides the personal credentials of the organization or individual verifying the documents to reduce bias

These benefits can substantially reduce the burden of hiring managers. And also, no background verification will be skipped by the HR teams due to the lack of resources or time.

Time is Ripe for Blockchain-Enabled Employee Verification to Go Mainstream

An automated and distributed blockchain-enabled employee background verification can solve multiple challenges of the hiring process.

  • Access to accurate data without human intervention
  • Reduced hiring costs in the absence of third-party background verification vendors
  • Successful verification of employment even if the last organization has shut shop
  • Amid social distancing due to COVID-19, blockchain verification is the safest way to verify employee credentials

Mainstream application of blockchain-enabled employee background verification will enable employers to hire high-quality candidates at shorter timelines and lower costs.

What is in Store for Freelancers?

Due to a few frauds and defaulters in the market, several freelancers suffer from a credibility crisis. A blockchain-enabled employee verification platform can help freelancers to store their education documents and work experience proofs in a safe, secure, and reliable manner.

Here is how it can help:

  • Access to credible documents will enable employers to weed out fake candidates; only deserving people will get work opportunities 
  • Freelancer can easily pursue clients with credible proof of their qualification and experience
  • Create trust and build long-term relationships with clients
  • With a blockchain-enabled verification badge, you can easily stand out on online freelance portals and attract inquiries

In Summary

With organizations embracing digital transformation, the culture of working remotely will thrive more in the coming years. The aspiration of “do what you love” will encourage more professionals to work in a gig economy. Using a blockchain-enabled employee background verification solution at scale can help both freelancers and employees to work in a safe and secure environment.