Unwrapping the Power of Blockchain in Recruitment Industry
Tim Sobbeth from Houston was hopeful that the interview he had given for a new vacancy would land him his dream job. But as weeks passed without any callback from the HR team, he was dejected–not because he had potentially lost the job, but that he was made to wait for so long without a proper intimation from the recruiter. On the other hand, candidates are bombarded with unwanted jobs and get calls daily about a job offer that is a complete mismatch with their line of expertise. With all these problems, it is no surprise the job seekers are fast losing trust on recruiters. Blockchain in recruitment has come to the rescue.
But the issue is not just at one end.
From a recruiter’s point of view too, the amount of misrepresentation of data in candidate’s CV makes for an overall poor recruiting experience. As per a HireRight 2017 survey, as many as 85% of the respondents agreed to catching a misrepresentation or a lie put on the resume during the screening process.
More than an inconvenience to the HR function, such falsification add tremendous loss to the top lines too. As per another report, 46% of the fresh hires fail in the first 1.5 years on the job – a glaring indication of the mismatch of candidate skills and job description, which couldn’t get caught in the HR screening process because of the falsification of information.
So, as we see, there are a host of issues at the recruiter’s end as well as the candidate’s end. There are no two ways that it needs the trust factor between the two parties to enable a smooth and successful recruitment process.
Power of Blockchain in Recruitment
Parties in a transaction vouch for trust as one of the key factors for the transaction to be completed successfully. For the uninitiated, Blockchain is a system of distributed ledgers that contain verified information on multiple computers, which cannot be hacked or modified by unauthorized entities. By applying this architecture of data sharing, it not only makes the information secure but also cuts down the costs of middlemen needed for the job.
As per Deloitte, while Internet-powered information, similarly Blockchain in recruitment industry powers value. Currently, it is majorly used in record-keeping for cryptocurrencies. But shortly, it will disrupt multiple industries and verticals just like the internet did a few decades back.
Advantages of Blockchain in Recruitment
1. Information privacy
In this age of Facebook-Cambridge Analytica fiasco, it is right to be concerned over the privacy and confidentiality of data shared by a candidate to recruiters. Keep in mind the recruiters receive thousands of job applications to fill up the vacancies advertised by them. While many companies will have adequate privacy policies and security measures in place, the risk of cyber-attacks is still there.
Fortunately, Blockchain in recruitment helps to balance freedom and privacy online. Candidates can utilize Blockchain-based CV containing details of their past employment and academic qualifications. The decentralized network on which this information is hosted can include the ex-employers systems too. They can verify the authenticity of the details pertaining to their organization.
Just like a smart contract (another valuable use case of Blockchain), Blockchain-based CV holders can control who should have access to the information and for how long.
If candidate are worried about how their information will be kept secure and private, then the decentralized nature of Blockchain would make this possible and make external hacks and unauthorized access, virtually impossible.
2. Verifying the authenticity of candidate information
Employers have to face tough challenges when trying to verify the accuracy of the information presented in a candidate’s CV. The HireRight statistic discussed earlier is an appalling indicator of this aspect. Accuracy of CV information is a big challenge and costs employers time and money to verify the credentials. This can turn to a redundant cost overhead if Blockchain comes into the equation.
Blockchain in recruitment is applied by innovative minds to solve certification issues. It not only detects information fraud on the CV but also maintains complete transparency between the ex-employer, the new employer, and the new hire.
Beyond certification, Blockchain in recruitment can relive the HR executive of the responsibility of validating documents like tax filings, past job history, education qualification, address and contact details, and experience details. The HR system could link to these records on the Blockchain and verify the authenticity of the information provided in the candidate’s CV.
3. Better hiring decisions
The record provided by a Blockchain-based CV can keep being appended with the most recent details about job held, achievements, skills, and experience. This will provide an in-depth view of the qualitative aspects of the candidate–be it work habits, punctuality at work, commitment to work, or performance evaluation of the ex-employee.
This also adds value to the new employer by removing the need for third-party verification of details. For the new employer, there is an additional advantage–they can make a better decision about who they are hiring for a given job role. His will reduce the high failure rate of new hires, as the job description will perfectly match the expertise the candidate has to offer. Getting the right person for a job at the first try is what makes the deal all the more better for a new employer.
Blockchain has the power to transform processes and bring in innovation to improve efficiencies and reduce middleman cost overheads. It is no surprise that entrepreneurs and HR specialists are using Blockchain to transform the employer-employee relationship by boosting the level of trust between the two.