Recruitment is currently a haphazard task based largely on trust. Even with the software advances provided by applicant tracking system (ATS) software, there is still a lot of footwork that must be done by humans and a huge margin of error that can make a really bad hire seem like a good find. Blockchain is poised to potentially change the way that the whole system works.
Blockchain began as a way to track and trade cryptocurrency, but has begun to evolve into a way to track and trade many other items of value – including information. When a transaction is made on blockchain, it creates a “block” of information. As more “blocks” are added, it creates a “chain,” hence the name blockchain.
Where blockchain differs from most other systems of digital exchange is in its decentralized structure. Whenever a block is created, it must be validated by at least one other party. In terms of currency exchange, the transaction would be initiated by the party supplying the money and verified by the party receiving the money.
This decentralized structure inherently protects the system from hacking and falsification.
When a candidate applies for a job, one of the first tasks that a recruiter or hiring manager must complete is employment verification. At the current juncture, this involves placing a call to a number supplied by the applicant and asking questions regarding previous employment. This task is flawed because the number provided may be false, the information supplied may be inaccurate, and the reference may be biased.
Ideally, blockchain could automate and simplify the employment verification process. Whenever an employee is hired, a block would be created showing hire date and position. When another company needs to verify employment, they could be given an access key code that will allow them to view the individual’s employment history, without as much potential for error and falsification.
Creating a 3D Work History
Blockchain has the capability to create a three dimensional picture of a candidate’s work history. Far from just being able to log previous places of employment, blockchain could be used to track accomplishments, log performance reviews, and chronicle behavior. This could help companies to get a much better picture of a candidate’s work ethics and character.
Confirming Education and Certification
Even for entry-level hires, blockchain could be a blessing. While a candidate may not have a rich work history to show, they may have education and certifications that make them a better match for the company than another entry-level candidate. This information would currently be difficult to locate and verify, but blockchain would make it easy.
Transforming the Recruitment Process
If blockchain does enter the hiring arena, it could change the recruitment process in fundamental ways. Recruiters and hiring managers would have to spend much less time verifying skills and qualifications provided by candidates, freeing them up to focus more on character and cultural fit. Time to hire could be reduced dramatically.
In some cases, it may even change the amount of labor hours that need to be dedicated to hiring or alter the number of people needed to fill out the department. This could cushion the bottom line or allow companies to reallocate their human resources to better serve their workforce.