Ways in which Blockchain will shake up Recruitment forever
Blockchain technology is becoming more and more prevalent in today’s world and has the potential to greatly affect a large number of industries. The decentralized, immutable nature of a Blockchain ledger, means that industries like finance, art, governance, supply chain, real estate and many others are likely to be disrupted. Blockchain will have a salient effect on the aforementioned industries, but one industry for which the effects of Blockchain are likely to go unnoticed is Recruitment.
Estimating how long it will take for Blockchain to permeate the recruitment industry is difficult, but I believe it is inevitable that Blockchain will have at least some impact on the Recruitment industry forever. The technology still has a way to go, both in terms of innovation and adoption, but it is certain that Blockchain will offer multiple benefits in this industry. Some sectors, like finance and supply chain, have already been changed forever; Recruitment on the other hand may take a few years to fully embrace Blockchain technology. As with most industries though, it may be a case of embracing it, or losing out to those who do. Here are some of the ways in which Blockchain will shake up Recruitment forever:
Faster, more efficient background checks
Blockchain ledgers are by design, immutable. Immutability means that once something is stored on the Blockchain, it is almost impossible to alter. This means a candidate’s previous employment, education, certifications, SSN etc. can all be accurately stored on the Blockchain and easily accessed by those who have permission. These conditions make it awfully difficult for candidates to lie or embellish their resumes, which has always been a big concern for recruiters. The decentralized nature of the ledger allows recruiters to access all this data directly rather than having to go through a middleman.
Decentralization of databases
Data on the traditional web is largely owned by huge corporations who make money off of owning and selling our data. The best example within recruitment is LinkedIn, which is a big part of every recruiter’s toolkit. LinkedIn is essentially a middleman: Candidates upload their data onto the platform for free, so that LinkedIn can sell recruiters their data. Blockchain technology is likely to cut out this middleman, and this model may become obsolete in the near future. We will soon live in a world where candidates can take back ownership of their data and upload all their information directly to the Blockchain. Individuals will therefore own their own data, and not be a product of companies like LinkedIn. This new model could mean recruiters can access candidates’ information for free, and no longer have to pay for premium services.
When most people hear about Blockchain, they think about Bitcoin, or more generally, Cryptocurrency. Cryptocurrency is likely to have a big impact on recruitment as well. As the working world becomes increasingly remote, companies are opting to hire from all over the world to cut down costs. Hiring across borders can be a painstaking process, and much of this difficulty regards paying the employee. Sending money internationally usually involves large transaction fees as there is always a middleman earning a profit from that transaction. The decentralized nature of Cryptocurrency cuts out the need (or at least minimizes) that fee and can save employers and employees non-trivial amounts of money. Making traditional payments to employees is often a hassle, and the process can differ greatly depending on the location of that employee. Cryptocurrencies have the potential to streamline the process. All you need to make a payment is the recipient’s wallet address. For recruiters, this will open up the talent pool and can reduce the friction when it comes to hiring internationally.
Blockchain is still in its infancy, and no one can accurately predict the disruptive effects it will have. Many industries have already been greatly affected, while for others, like Recruitment, adoption of Blockchain technology is lagging behind. Blockchain technology will influence recruitment forever, and those who adopt it early could have a huge advantage over the competition; and as the industry evolves, many will be left behind.
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