Once upon a time, there was a situation when people used to have a barter system. For example, if someone had grains and another person had vegetables, then they would exhange each other’s goods. From that to a notable NFT development company contributing to the success of any organization, systems have transformed a lot.
These technologies help an organization on micro levels to achieve massive benefits. For example, blockchain technology is a boon to many areas in an organization, including blockchain HR.
- Markets and Markets say that by 2026, the global blockchain industry will be USD 67.4 billion.
- According to Triple-A and Grandview Research, by 2030, the worldwide blockchain market will have a value of USD 1431.54 billion.
Let us understand why this technology is adored by almost every industry!
Blockchain boom
In 1982, the blockchain-like protocol was discovered. Then in 2008, the first decentralized blockchain thought was developed. However, the features of blockchain make us believe in the following numbers.
- Further, PwC says that by 2030, this will have a massive impact on the global GDP of USD 1.76 trillion.
The blockchain is a decentralized ledger. In simpler words, blockchain is a system that stores the data efficiently and makes it difficult to change, hack or commit fraud. This is because it has a decentralized and irreversible nature.
Therefore many financial firms and banks prefer using blockchain so that it will provide a secure and safe platform. Apart from financial firms, many industries, including manufacturing, fashion, education, healthcare, etc. In addition, blockchain can offer many advantages in any business or organization.
Further in this post, you will read about the practical advantages of blockchain HR. First, let us know about the role of human resource management.
Significance of human resource management
What makes a company successful?
An idea or passion that drives the firm? Or is it only robust technology that you can incorporate? Well, a successful company needs all these things plus one asset- human resources. Any idea or technology in the business is of no use without capable employees. Having such human power means a lot to a company. From day-to-day activities to achieving larger goals, human resources can do wonders!
Moreover, managing such an important asset is a skill. This is what human resource management is all about.
- According to a report by Grand View Research, in 2021, the worldwide market for HR management was USD 19.38 billion.
- Moreover, from 2022 to 2030, its growth is expected to have a rate of 12.8%.
HRM takes care of all the activities, right from searching for the perfect match for a vacant position to managing the compensations and rewards. Furthermore, many technologies enhance this skill of HRM. Let us discuss what blockchain HR is!
Blockchain HR
Blockchain HR is the use of blockchain features in human resource management. Blockchain has various features that can benefit HR. For example, those features may include decentralized nature, immutable record storage, encryption, smart assets, token system, and much more.
Now, let us move ahead to explore the benefits of blockchain HR.
How can blockchain HR be effective?
Suppose an organization is launching a new gig. Therefore, the responsibility of HR is critical. In addition, many more things are involved in this, from finding the right candidate to maintaining cross-functional communications. And what if promising blockchain HR is there to help? Let us see what blockchain HR brings to the table.
It will take care of payrolls.
Payroll is an important part of the system. The blockchain has the power to offer secure payrolls. In addition, it can automate payroll transactions. Moreover, a blockchain-enabled payroll system is popular amongst many startups.
Recruitment can be easy with blockchain HR.
A recruiter has a lot of tasks to do in terms of data. Many steps are involved in sorting the data shared by candidates at an initial level, then shortlisting candidates with add-on certificates, etc. Moreover, it is extremely crucial to have an authenticity check of all the documents and certificates shared by candidates. However, when candidates use blockchain, they can store all their certificates and documents in the blockchain. This will ensure security and authenticity as well.
Data management will be smooth.
When you have employees on board, their data is crucial too! Maintaining the data can be a task, but not with blockchain. In addition, employees provide many personal details in the information asked by a company. It can be secured with blockchain.
Smart contracts are there for your help!
Blockchain HR can be beneficial in administrative work. For example, smart contracts shift the contracts with papers to digital, irreversible records. Moreover, employers can implement the same policies with blockchain-enabled smart agreements for employees.
Some add-ons
Blockchain can help recruiters to have a history or background check of the candidate. Nowadays, many universities make use of blockchain for allocating certificates. Therefore, providing such information will be an effortless way for a recruiter to have a background check.
In addition, blockchain can help HRs with employee benefits. Traditional employee benefit systems used to have manual operations. However, blockchain can make this system more efficient. For example, suppose the employee is going to get medical benefits. Blockchain will exactly leverage the benefits to the candidate on time. Moreover, this will make HR less hassle for the benefits scheme and include precision in work.
Let us sum it up!
Human resource management is an important part of any business, be it small or large. Having a perfect candidate can save a lot of time and energy. Also, the contributions of well-versed human power can cause enthusiasm in the work culture. Ultimately, it drives in significant revenue. Thus, onborading and managing this strength is a crucial task.
However, many technologies can make this look easier for HRs. Technologies such as artificial intelligence, cloud, and blockchain can be powerful tools to make this happen. Therefore, do not forget to connect with a blockchain development company to leverage the maximum power of blockchain HR.
Also read: The Complete Guide To Blockchain Development In 2024