hr Archives - Blockchain Guide for Everyone

Blockchain is not just about cryptocurrencies but it can be applied in businesses. In this article, we shall explore its application in human resource management. HR Blockchain use cases have started to emerge and have the potential to disrupt traditional HR systems. Among them are ChronoBank.io, PEACOUNTS,and bitWAGE

Let’s examine each one of them.

ChronoBank.io

This is an HR blockchain platform designed to improve the recruitment process as well as payroll. It claimed that it will disrupt the HR industry similar to how Uber has disrupted the taxi industry.

ChronoBank ecosystem comprises a hiring platform(LaborX), a decentralized exchange(TimeX), a multi-signature wallet(Chronowallet) and a cryptocurrency that is pegged to labor hours(Labor Hour token).

LaborX is their flagship global hiring platform that connects candidates to the companies. It features an industry first immutable reputation system and a crypto payment system based on smart contract. The reputation system allows faster screening of candidates therefore save time and cost in hiring the right candidates. In addition, the crypto payment system enables candidates to get paid on time.

Furthermore, it plans to use a stable coin as the crypto payment to eliminate volatility common in most cryptocurrencies. This coin is known as Labour-Hour tokens. These tokens are linked to average hourly wages in the host country and are backed by a real labor force from big recruitment and labor-hire companies. Labor is considered a tradeable resource so ChronoBank will tokenise this resource into the LH-Tokens.

PeaCounts

PeaCounts is a blockchain-based payroll system. PeaCounts claimed that their payroll system will revolutionize the way employees are paid by using blockchain to remove the trust-based elements of the payroll process. It ensures the employees will get paid as soon as the work is completed. On the other hand, the employer will pay just for the work completed.

It features a smart contract that can track an employee location and time spent on certain tasks. It also holds the PEA Tokens and release them to the employee upon completion of the tasks. This system ensures that the employee gets paid efficiently and fairly.

The PeaCount payroll system is a private blockchain created as a fork off the Bitcoin. It also implements the zk-Snarks protocol and a multi-access wallet to ensure security in payroll transactions.

bitWage

bitWage is a payroll and HR services platform designed for the digital age. Basically it is a global outsourcing platform that serves the freelancers who wish to seek jobs worldwide and employers who wish to hire remote workers .

The bitWage payroll system allows employers to pay their remote employees rapidly with low transactions. The employees have the option to receive their wages and salaries in any of twenty four fiat currencies, four cryptocurrencies , and four precious metals.

References

Human resource management has undergone tremendous changes in recent years particularly with regards to digitalization of human resource. The emergence of blockchain technology could further transform the world of HR.

According to Griffiths(cited in Gale, 2018), blockchain has the potential to streamline a lot of inefficient work related to employee data verification. Blockchain can store a candidate education, certifications and work history in a single ledger, therefore it would take just minutes rather than days to verify the data. Besides that, the data cannot be modified or hacked once they are stored in the blockchain, thus guarantee data security and trustworthiness.

In addition, blockchain has the potential impact on HR by allowing personal data to be owned by the individual rather than the organization(Mike, cited in Gale 2018). Consequently, every employee could maintain control over their entire employment data, including educational background, training, and work history. It also means that an individual work identity is more portable, it moves with the individual rather than stuck inside the former organization when an employee changes job.

Besides that, blockchain could disrupt conventional HR processes with respect to financial transactions. Blockchain could streamline payroll function significantly by allowing automated and direct payment based on smart contarcts, without the need of a third party such as a bank or other intermediaries.

Recently, PWC (2018)has identified a few areas where we can apply the blockchain technology in HR. The areas include talent sourcing and management, targeting productivity gains, cross-border payment and mobility and Fraud prevention, and cybersecurity and data protection.

Talent sourcing and management

Blockchain could have a major impact on talent sourcing and management. It allows employees to maintain and control access to a comprehensive, trustworthy blockchain-based record of their education, skills, training and workplace performance. By providing potential employers with access to their blockchain-based employment data, companies would be able to match individuals to roles much more accurately and effectively.

Targeting productivity gains

Blockchain has the ability to better match people’s skills and performance to jobs. Finding and recruiting the right talent is always problematic for business organizations, therefore by helping them do this more effectively and efficiently will surely boost their productivity. Besides that, blockchain can help to reduce the burden of data-intensive processes like payroll and VAT , allowing companies to focus more on their core businesses.

Cross-border payments and mobility

Multinational companies could create their own blockchain-based corporate cryptocurrencies that they can use for cross-border payment across their global supply chains, without the need of third-parties for settlement and reconciliation. In the future, central banks may legalize this type of cryptocurrency and support convertibility into fiat currencies. In addition, blockchain could facilitate employees mobility across the border with respect to payroll adjustment, international expenses, and taxes.

Fraud prevention, cybersecurity and data protection

HR department usually needs to handle high-volume financial transactions and sensitive personal data, therefore it is utmost important to prevent frauds as well as to safeguard the data. This is the area where blockchain could be extremely useful. Blockchain’s use of consensus to authenticate data can help to eliminate frauds.

Another issue that blockchain can help to overcome is cyber threats. Many SMEs are ill-prepared for cyber attacks and the results could be detrimental to their businesses. Blockchain could help ensure cybersecurity as the data are immutable and tamper-proof because it uses SHA-256 hashing cryptography.