Blockchain technology is best known for cryptocurrencies; especially Bitcoin. But, it can be used for a lot of other applications as well, including employment screening. In the coming years, it is expected that blockchain will completely transform the way traditional hiring of employees happens right now. In particular, blockchain will change the way organizations hire workers more easily, efficiently, and at a faster pace.
What is Blockchain?
Blockchain is a system where the data is stored in blocks or batches. The blocks are interlinked with each other in a chronological order or a chain. Once the information is stored, you can’t change or delete the information. Any changes made are stored in a new block. Several copies of the blockchain are made available across various networks of computers that verify the information in every single block before adding to the chain. This makes data fudging extremely hard. Blockchain can be private, public, or hybrid of both.
This implicates that the information stored on blockchain is transparent, secure, and trustworthy. So, how can it replace traditional employment screening? Let us find out.
1. Hire Freelancers with Confidence
Gig economy is thriving like never before. Temporary workers have become a crucial part of organizations’ modern business strategy. However, sourcing an efficient and reliable temporary resource might take as long as recruiting a full-time worker. If freelancers start uploading their work and qualification credentials on the blockchain, it would help staffing teams to easily find and verify freelancers.
Universities can upload certification and degrees. MIT is already doing it. Employers can upload the job title and date of employment. Other relevant information including police background check can be added to the set as well. Freelancers can make all these records accessible to the staffing agencies.
As all the employee information is verified from the source, you would not need to spend extra resources and time to validate the information from universities and previous managers.
2. Contactless Verifications
Social distancing is the new norm amid COVID-19. And it is expected that even after the pandemic, people would prefer to avoid meeting unknown people in person. Blockchain-enabled employment screening will help you validate all the information remotely. You just need to simply sign up to a blockchain platform, request the verification, and your job will be done within a few hours.
3. Digital ID
Today everyone uses the internet and in the process, leave a lot of digital footprints behind. From downloading and using a social app and reading articles on a new portal to wearing a fitness track to track your activity and online streaming your favorite movies; a lot of user data is generated on a regular basis.
With smart technologies and IoT getting embedded deeper into our lives; your refrigerator, car, smart home assistant, CCTV camera, and more are connected to the internet.
All this data can be leveraged to map a user’s dislikes and likes, skills, interests, and habits. Pulling all the information in blockchain can help in creating a digital dossier of a potential candidate. It would help in having a more rounded picture of the candidate that you can’t judge through a resume or cover letter.
4. Gender Pay Gap
As per Pew Research Center study, women earn 89 cents for every dollar a man earns in the same age group in the USA.
Blockchain can address this massive pay gap by making the process of performance evaluation and payment structure more transparent. With businesses leveraging more connected devices including lighting and door sensors, wearables, and telepresence technology; more data is generated to track the performance of employees. Employers can track the number of billable hours, scheduled and attended meetings, and the project progress in real-time. It would help in better alignment of payment with the performance of employees.
Apart from these, if the information is put in an open blockchain, the process of salary increment and bonus will become more transparent.
Several startups and small businesses don’t have the resources to fund traditional employment screening. It takes more than one dedicated resource and often several days to complete the employment screening. From contacting universities for education qualification verification to chasing ex-managers of employees for employment verification; the process is tedious and costly. In several cases, verification teams also need to travel to different cities to verify address, criminal background, and other relevant information.
Post COVID-19 world is not going to be the same. While people will get used to social distancing, businesses will focus more on the health of their bottomline. Both organizations spending big dollars on traditional employment screening processes and small businesses that can’t afford employee background checks at this point in time see blockchain-enabled background verification as a potent, reliable, and efficient solution.
Blockchain will make the employment screening more affordable, accessible, and feasible for organizations of any category and size.
ValidateMe is a leading blockchain employee background verification service that can help you do all the checks within a few hours cost-efficiently. Talk to our experts for more details.