Employees being the crucial bearers of technology, knowledge, and service, represent the core component of any enterprise. Nothing can substitute the significance of human resources for the continuing development of an organization and therefore it becomes very important for an organization to verify the authenticity of human resources before hiring them.
When an individual applies for a new job, he/she needs to submit his CV describing his complete history, including personal details, education details, previous work experiences, etc. These details are then checked by the HR officials of the organization.
This is quite a lengthy process as the HR office needs to verify the credentials of an individual mentioned in his CV. But with blockchain, the complete history of the applicant will be available on the shared ledger.
This includes and is not limited to his education certificates, acquired skills, workshops or conferences attended, contact Information, his previous work experience, all his promotions, appraisals, appreciations, and awards won in the previous organizations, and even the reason for leaving the previous organizations.
Before interviewing suitable candidates, organizations can pull all their history from the blockchain and that could help them to make better decisions during the hiring process. The current procedure to onboard new recruits is quite a lengthy and tedious process.
When an individual is hired by an organization, there is a lot of paperwork that they need to complete like submitting his previous records, signing job offer agreements, signing nondisclosure agreements, etc. The paperwork and multistage approvals continue throughout his whole employment life cycle.
For example when he/she switches his role or his department, or he gets promoted, or when he quits the company for a better career opportunity he is required to go through a multi-level approval process. Further, when he/she joins the new organization, he/she has to go through the entire process again. He has to again submit all his documents to his new employer. But with the implementation of blockchain, complete information of an individual will be available to the potential employer.
Thus reducing the time and energy spent on the validation and verification of an employee and therefore streamlining the whole HR process.
In the current scenario, estimating and calculating the annual taxes is a pain for any employee. And it is an even bigger headache for the contract workers due to a higher degree of the complications involved. Blockchain could make life easier for everyone. The smart contracts would work as fair accounting systems that would calculate the taxes for individuals, which can be easily audited by everyone on the blockchain network like employees, tax departments, etc.
Employee’s salary, savings, donations, exemptions, investments, and other sources of income can be recorded on the shared ledger. And based on this available information his tax amount will be calculated and deducted at a predefined time without the need for any manual intervention. Even today majority of the organizations have all of their employee agreements on a piece of paper and the HR department is required to validate and maintain these agreements. But with smart contracts, everything can be made seamless.
All the agreement conditions can be predefined in a smart contract and when the decided conditions are fulfilled, smart content gets executed automatically.
For instance, if an employee’s promotion or bonus conditions are fulfilled, the smart contract will get executed and an automatic bonus amount or promotion orders will be released to the respective employee. if an organization is required to hire a person on a contract basis, the work conditions and payment terms can be predefined in a smart contract. And when the predefined conditions are met, smart contact will get executed and an automatic payment will be released to the contractual resource.
Blockchain technology can be used to store biometric data of employees such as fingerprints on iris scans. The attendance of employees can be stored and tracked on the shared ledger. Expenses done by employees for the official work can also be recorded on the blockchain. Having a transparent and immutable record will make it much easier for the employees to get quick approvals and claim their expenses from the concerned department.
Today, if an employee has to claim for the official expenses done by him he has to go through a series of stakeholders for getting the required approvals. This in turn becomes a frustrating and tedious task for an employee and also affects his work efficiency as a lot of time is wasted in getting these approvals. Claims can readily be settled as chances of fake claims will be negligible owing to the transparent and immutable characteristic of the Blockchain.
This would decrease the unnecessary hassle for an employee and he can devote his precious time to produce project work. An important and major task of the Finance and Human resource department is to release the salaries of employees on time after verifying their attendance and other perks that they receive. If all conditions of the payroll are defined in the smart contracts, salaries will be released to employees automatically at the end of the month or week as predetermined.
Thus streamlining the complex management process. From a compliance perspective, blockchain can help organizations to know the provenance of a particular item and to validate its authenticity.
Let’s take an example of a pharmaceutical company, when the raw materials arrive for the manufacturing of drugs, the concerned department of the company needs to verify the authenticity of the raw materials received.
Through Blockchain technology, it will become easier for them to validate if the supplier has sent the authenticated raw materials. After the drugs get manufactured, they need to arrange and keep track of the logistics, product delivery, etc. which requires a lot of manual work, phone calls, emails, etc. But through Blockchain, they can keep a real-time track of the journey of the product thus simplifying their task. Every individual who applies for a job in a new organization wishes to know about the work ethics, culture, and reputation of that organization.
He/she also wants to know if there are any challenges that he may face after joining the organization like getting delayed salaries, work-life balance, working weekends, etc. In another scenario, if an employee is is not satisfied with his organization and finds some practices of his organization unethical he should have a platform to rate his company and raise this concern without revealing his identity.
But at the same time anonymous rating doesn’t give the required credibility to any rating or review as many times, these are also fake. Blockchain offers a platform where an employee who has worked or is working can rate that organization without revealing his identity.
Through blockchain, it can be verified that the reviewer has worked or is working with the company but his identity won’t be revealed. With such a platform in place, it would be much easier for a potential applicant to know the true picture of the organization and take a better-informed decision before joining any employer.