How Blockchain Can Help with HR Processes | CXC AMERICAS

The global blockchain market is predicted to reach a value of $163 billion by 2027. In HRM, there are several companies and startups exploring the use of blockchain in HR processes to improve people management, communication and workflow operations.

 

The global blockchain market is predicted to reach a value of $163 billion by 2027. As the latest emerging technology that’s rapidly disrupting the majority of the world’s biggest industries, venture capital funding for blockchain grew 713% in 2021. With 81 of the top 100 public companies investing their future in blockchain through research and development, these early adopters will strongly influence enterprises with traditional systems to convert into blockchain applications for their business solutions in five years. In Human Resources Management, there are several companies and startups exploring practical use cases of blockchain in different HR processes to improve people management, communication and workflow operations.

Blockchain in HR

Here are some of the important HR touchpoints that will be transformed by blockchain. Let’s also mention the companies and startups responsible for paving the way for blockchain to be adopted as an industry wide initiative in Human Resources.

 

  1. Employee rewards and recognition

Most HR technology solutions are designed for enterprise-level organizations without enough focus on the needs of individual employees. These companies are developing better HR management systems that integrate blockchain-based incentives into existing rewards programs.

 

  • eXo Platform  eXo Platform, established in 2003, builds open-source project management tools and software. It was only in 2018 that the company launched its foray into the Ethereum blockchain technology. With a strong focus on their Cauris tokens to innovatively engage employees to improve their productivity and workplace experience, eXo Platform uses a gamification system for an individual to interact with their peer’s works. The points are converted into the tokens which they can use to purchase perks in an internal marketplace called The Perk Store that is posted by the HR department. The items in The Perk Store can be anything— from cinema tickets, novelty items to special training courses (Photoshop, Java, etc.) provided by the company.
  1. Talent data transparency


Blockchain is a game changer for management of sensitive data especially for Human Resource who receives the bulk of credentials from applicants that includes their education and work history, skills, training, etc. Information stored in the blockchain is permanent and cannot be altered. HR managers sometimes hire third party companies to investigate the honesty of the information and background verification. Blockchain not only reduces this costly and tedious process but empowers HR managers to make smart decisions to choose applicants that fit the open job role. Applicants, on the other hand, have the opportunity to present their qualifications with confidence.

  • VAKT Global Ltd Oil company giant Saudi Aramco invested $5 million dollars to VAKT, a consortium of oil majors, traders, and trade finance providers aiming to digitize the global oil industry through blockchain to develop a blockchain-based verification solution to their hiring process that is efficient and secure called the Blockchain Certificate Verifier. High risk work such as operating machinery and working with hazardous chemicals requires academic and training certificates that are critically important. Saudi Aramco wants to avoid counterfeit certificates and under qualified applicants that could potentially put a risk in their business operations.

 

  1. Payroll operations

    The administrative cost and effort in manual data input is what makes payroll a tedious process. Blockchain in payroll will automate the payment process cutting off the delay time, reduce the costs for the company, and employees will be paid on time.

 

  • Etch Founded in 2017, Etch prides itself as the payroll solution built on the Ethereum blockchain. Smart contracts track an employee’s work progress and pays out incrementally to make sure that no completed work goes uncompensated.  Etch credits payments in the form of tokens stored in a digital wallet. Employees can withdraw their earnings using the Etch payroll card in any location in the world.

 

  1. Communications

 

Blockchain’s key characteristics such as security and privacy, transparency and traceability will help streamline business communications. As a digital ledger duplicated and distributed across an entire network of computer systems, all information and records of transactions are encrypted and securely stored. Only the owner of the private blockchain can grant access to anyone. Moreover, it has a decentralized structure that enables real-time data sharing and reduces points of weakness.

 

  • Beowulf Beowulf is a 2019 startup that has a decentralized cloud network worldwide to facilitate privacy-controlled communication services such as voice/video calling and messaging on a pay-per-minute of usage structure, a distance learning platform called VICTORIA, and a comprehensive telemedicine system called HANA.

 

  1. Contingent workforce operations

One of the sectors that will greatly benefit with blockchain infrastructure are the “gig workers”, which is also known as contingent workers. Cross-border payments to contingent workers will be faster without the traditional payroll process that goes through banks and remittances. Aside from payroll, the use of smart contracts and personal blockchains will streamline all data and people management operations.

 

  • Argon Argon launched in 2021 as a blockchain platform for freelancers. Its founders developed the decentralized platform to help solve the major problems of freelancers with commission rates. Argon runs on the Binance Chain network and offers smart contracts and payments in cryptocurrency. HR managers and employers hiring talents for a job role in Argon is basically similar to the traditional HR process—- talent seekers will post the job task and requirements in Argon. Job seekers, on the other hand, will search for tasks that match their skillset. They will earn commissions for a completed task and will receive the payment in crypto. In 2021, Argon values at $1.2 million and transactions exceeding 200,000.

 

 

CXC is a global HR outsourcing organization with 30 years of experience in workforce management. Our innovative and cost-effective solutions help companies gain a competitive advantage by improving efficiency while reducing risks.

Contact CXC today to start enabling your future workforce.

 

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