A blockchain is the record keeping system in the digital form which verifies the candidate’s information from qualification institutions to earlier workplace mentioned in the CV. It is significant for the recruitment industry as it ensures that the information shared by the candidate is correct in every stage of the application process of recruitment.
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In this article, check how blockchain technology can revolutionize the recruitment industry.
What is actually Blockchain Technology?
A blockchain is a digital database for keeping the records where every detail is validated and recorded in the decentralized computer. The records are shared with every person having the access in the form of the block. However, it is shared when all the parties involved verify the accuracy of information. The users can only edit the information in the blockchain if they are the owners and possess the private keys to access it. The blockchain is stored on the centralized server held by the company with an extra level of security.
Benefits of Blockchain Technology in the Recruitment Industry
- Biometric ID Verification
Biometric is the gaining the huge popularity in the identity management. However, there is the growing susceptibility in the system that the information can be leaked by the third party without any awareness of the owners. Considering this factor in mind there is the development of blockchain technology to use for identity management. There is a decentralized database that prevents the singularity, validity and integrity of the stored information without involving any third party.
The information is stored in the distributed ledger by combining the biometrics and blockchain technology. There is no access to this information to other authorities as the recruiters have the full access to information which is absolutely confidential and depends on them to share or not.
- Verifying CVs
Blockchain technology helps to validate the CVs of the job aspirants by verifying every single point mentioned in the CV. This helps in prevention of selecting the candidate with out of date, fraudulent documents, etc. In the future, one can store it in the blockchain ensuring an easy application process. This will help the recruiters for choosing the candidates into prospective employers. There are many applications that are fraudulent but blockchain can verify the details and make the process more secure and reliable.
The information of the candidate is on an online database. This means one can’t delete, retract the information as it is GDPR compliant. It helps in an easy validation of the data and choosing the right and higher quality of candidates for various vacancies. The information is secure and can’t be altered. In fact, there is no single point where system compromised or gets fail. No one can tamper the records and the information stored is reliable and authentic. There is full transparency within the system and job aspirants know that they have the right qualifications to get success in the role they can play after recruitment.
- Time and Cost Savings
It is the responsibility of the recruiters to hire the talented people. But doing this is time-consuming and requires efforts to verify all their details. Blockchain allows the pre-verification of Resume and knowing about the role of job aspirants even before hiring them. This helps with time and cost savings.
So even before the initial contact stage, a recruiter has the access to the entire candidate’s information. This includes previous work information, work experience, qualification, on job training and all can be verified.
- Improves the Productivity
The recruitment process is time-consuming and frustrating but blockchain technology reduces this burden by automating the process. Hence, the staff can focus on important tasks and thus there is good productivity in the organization. This also helps to make the candidate’s experience better.
- Cross-Border Payments
One of the most useful features of blockchain technology is the cross-border payments in real time. The recruitment industry has understood its importance and they are adopting to pay the cryptocurrency to reduce the volatilities in the economy. It is better for the employees sending money to their families.
- Helps on-boarding Process
When there is new recruitment, there are many formalities such as providing computer, passwords, email address, key card access, vehicle parking pass, electronic signature and the list is endless and time-consuming. Blockchain allows all these tasks in automation form using smart contracts stored in the form of nodes in the blockchain technology.
The recruitment industry has embraced the blockchain technology. However, there are cybercrime and fraud in the recruitment process. But blockchain technology in the form of the global network is ready for every kind of disruption. Hence, there is tremendous potential for utilizing the blockchain technology in the recruitment industry. It has not only improved the recruitment process but revolutionizes the way it is done.