When we talk about blockchain technology, we think of cryptocurrency, don’t we? Or, at the most, to ensure security in financial transactions.
But did you know that blockchain can be used in the recruitment process?
Blockchain technology in recruitment is changing the way you select and hire candidates. Yes! You heard it right: blockchain is no longer restricted to only the technological realm.
It has become one of the most prevalent technologies across diverse industries. Recent research estimates that the global market revenue of blockchain technology will reach about $20 billion by 2024. Today, we will let you identify the role of blockchain technology in recruitment and how it is improving the entire process.
What is the Relevance of Blockchain Rechnology in Recruitment?
Blockchain technology was launched in 2008 with the development of the digital currency Bitcoin. Since then, this technology has gained popularity in multiple sectors, and recruitment is no exception.
Here, people may want to know what is blockchain technology with example. Blockchain technology in recruitment is a distributed and secure database that stores candidates’ records and protects data integrity. Suppose you have validated and stored your prior address and previous employer details on blockchain applications. In that case, you can access all your information in the future.
Unlike traditional databases, where you can create, read, update, and delete data (CRUD) from a central location, blockchain databases record data permanently. A candidate’s education, employment history, work-related information, and other data will remain securely stored within blockchain databases.
When hiring a candidate, you can rely on this data to make an informed choice. It eliminates the chance of bad hires that can cost you up to 30% of your worker’s wage for the first year. On the other hand, candidates can share their data without worrying about breaches or tampering after verification.
Moreover, blockchain for recruitment offers both the recruiters and candidates secure access to authenticated records. It allows you to view applications in real time with candidates’ consent. This gives you a clear insight into a candidate’s true value, and no more considering resumes at face value, hovering over their LinkedIn accounts, connecting with references, etc.
Role of Blockchain Technology and Recruitment
Today’s recruitment is more about finding real talents and valuing skills than academic qualifications. Let us see how a blockchain recruitment platform can help you in this process.
No More Lies on Resumes
More than half of the job seekers often misstate themselves on resumes, leading to bad hires in companies. For example, people can change their salary scale to find better pay opportunities. But blockchain in talent acquisition eliminates tampering with data so that you get a clear and accurate picture of the potential candidates.
Moreover, blockchain, a transparent and decentralised platform, allows you to store any information on its ledger irrespective of geographic differences. This structure also makes it impossible for anyone to create false or misleading information. When you enter a fake entry into the ledger, the system will automatically reject it.
Faster Candidate Vetting
Whenever you post a job vacancy online, thousands of active job seekers apply for them. However, targeting passive job seekers becomes difficult as they don’t scroll through job boards much.
Altogether, the recruitment process is time-consuming, and screening individual candidates ranks at the top. It requires hours of phone calls, emails, and record searches to verify if the candidates’ credentials and qualifications are accurate.
Easy Onboarding Process
Most recruiters today implement applicant tracking system best practices to speed up the hiring process. However, sourcing and selecting candidates based on their resumes and matching them with your relevant keywords is not enough.
You can use blockchain technology in recruitment to complete the employee verification process in seconds. This means you don’t need to spend your valuable time searching and connecting with previous employers of your new hires.
Additionally, such technologies help you fetch criminal records, academic history, employment records, professional licenses and certifications, and other background checks.
Faster Employee Contracting
Blockchain technology helps in background checks and completes contracting procedures in seconds. While onboarding a candidate, you must go through multiple documents and departments to collect and verify information about the new hires and store them in your HR System.
Blockchain technology recruitment eliminates all these contracting steps by gathering employee information automatically. Thus, it reduces your paperwork burden and saves you more time communicating with the employees.
Store Employee Data Securely
With the introduction of new technologies in the recruitment process, candidate and employee data are at risk of breach or tampering. But with blockchain technology, all this personal information can be encrypted and stored securely.
It means no one can even view this information without consent. At the same time, modification and deletion of data are in no way possible.
Better Reach for the Underrepresented Candidates
If you are using an ATS for recruitment, chances are high that you’re missing out on top candidates due to gaps in the title or background. For example, parents returning to the job, veterans, or students face such difficulties.
However, with blockchain technology in recruitment, candidates’ accurate data gets recorded on the database. Whenever a recruiter asks for similar skills, the technology automatically recommends the profile if it matches the role. Thus, blockchain in talent acquisition ensures a genuine candidate-centric experience.
How 6 Pence Helps
If you are ready to use blockchain technology in recruitment, you can seek professional advice. It will speed up your hiring process and save you costs and resources when hiring top talents. Moreover, such technologies ensure you get accurate candidate data in hand and eliminate bad hires.
However, if you are having difficulty meeting top talents, we, 6 Pence, are ready to help! We are the leading temporary and permanent staffing agency in Oman, Iraq, Bahrain and Dubai, helping businesses meet top talent from our exclusive database.
Frequently Asked Questions
How is blockchain used for recruitment?
Blockchain technology in recruitment is used to find the right candidate by identifying skills, knowledge and experience. They safely store candidates’ academic credentials, certifications, past employment records, and other recruitment details.
What is a blockchain recruiter?
A blockchain recruiter is one who uses blockchain technology to source, select and onboard top employees who match the job role and the company values.
How does blockchain affect HR?
Blockchain technology can automate and streamline HR tasks like contract management processes and reduce the need for manual intervention. Altogether, they save you time to build communication with top employees.