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As per a Gartner report: Early adopters are already using blockchain-inspired approaches in almost all HR areas.
Read on to find out what these use cases are!
It has been predicted by a couple of consulting giants that blockchain, when used at its best - as a technology, will create $3.1 trillion in business value by 2030!
Although a significant amount of these returns will result from value generation and efficiency improvements in current operating models and business processes, the real value will come from the way it enables a paradigm shift in how societies, businesses, customers, partners and individuals interact, create and exchange value.
In its simplest terms, blockchain makes it possible for participants of a network that may or may not know each other to exchange value in digital environments. In its essence, blockchain provides trust in untrusted environments, eliminating the need for a trusted central authority.
But, what does it all mean for Human Resource Management?
Well, here are 5 elements any blockchain-principled technology may have:
Distribution
Encryption
Immutability
Tokenization
Decentralization
And here are a couple of essential capabilities that can be expected
Decentralized apps
Distributed business terms and conditions
Smart contracts
Smart assets
Consider what these components and capabilities could actually mean for the way businesses engage with talent in real life.
Imagine the next big, strategic initiative your organization launches — with a blockchain seamlessly connecting all businesses, vendors, people, activities and communications: the assigned in-house talent, the contractors and third-party suppliers, the cross-functional communications, authorizations, pilots, stage-gate reviews, budget approvals, etc.
Without phone calls, emails or stacks of paper, the right talent can be authorized and brought in at each relevant step in the process, given access to the information and resources they need only for as long as they need them, with activities moving automatically and transparently along the chain.
These early HR use cases nonetheless offer a glimpse into the blockchain future for HR:
Background and employment-history checks. In a distributed blockchain network, permissioned applicants can acquire virtual credentials (tokenizing their identity), which provide an immutable record of their work history. Prospective employers who tap into this blockchain eliminate the chances of fraudulent applications.
Employee data security and access. Employers have access to vast amounts of private information on employees. On a blockchain, records can be encrypted and immutably recorded — especially important for private records related, for example, to medical conditions or performance history. But these records can also be shared when necessary in tokenized form with participants who’ve been given verified permission.
Smart contracts for the contract or temporary workforce. A smart contract creates enforceable and immutable rights and obligations for all participants. Immutable contracts in HR can, for example, automatically release payments from escrow once workers complete assigned tasks, which smooths income for workers and cash flow for companies.
Compliance and regulations. Employees can enforce their “right to be forgotten” entitlements afforded by statues such as the EU’s General Data Protection Regulation (GDPR) just by deleting the encryption key and making the personally identifiable information unrecoverable. As more stringent legislation comes along, HR will be able to use blockchain to ensure employees have control over their own data.
Payment and benefits. Transactions encrypted and stored as immutable data on the blockchain are more reliable, enabling more streamlined auditing and compliance reporting. Payees will no longer depend on intermediaries such as banks to process payments. Likewise, banks will no longer control money flows to the extent that they can currently skew transaction values by trading — and therefore varying the value of — fiat (government-issued) currencies.
How to operationally actually start implementing the above?
Undertake measured R&D/innovation efforts with the primary objective of identifying realistic use cases and learning how to support blockchain. Participate in operational risk meetings with risk managers and CFOs to develop a blockchain SWOT analysis for your firm, industry or government agency. Learn from peers and pilot projects in finance and supply chain, where many early experiments are taking place. Explore the broader use of digital wallets, enabling employees to receive a part of their salary through digital assets — the precursor to leveraging blockchain capabilities
TiiQu chose a different path to enable HRs and modern workforces benefiting of immutability and security of blockchains.
The first difference concerns the "how" blockchain timestamping of facts and credentials certification ability are provided: unlike other players, TiiQu's CERTiiF is a standalone software that allows an issuer to fully control the publication on the blockchain in a process of five clicks which does not require logging into a platform and somehow become dependent on that platform.
The second difference relates to the TiiQu "why". The ultimate goal of TiiQu technologies is to enable instant trust. According to TiiQu, trust cannot or must not arise from the verification of a single element, but from multiple elements that validate and re-validate a single truth upon the time. This is an expensive, hardly objective exercise. To facilitate instant trust and avoid voluntary or involuntary bias, which can undermine the objectivity of decision-making, in the TiiQu world, ecosystems can rely on an impartial system that continually summarizes "how much" a series of information can be trusted as true and valid at any given time.
While blockchain is generally associated with easy and reliable verification, TiiQu technologies want to make verification through a trust mechanism unnecessary, for modern value-based ecosystems.
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