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How Blockchain technology is raising the human resources department

With the freelance on the rise, various industries are interrupted on different scales. The free profession offers employees and employers the opportunity to be specific in the work they do or need.

As a result, many companies (especially small and medium-sized businesses) are seeing the benefits of temporarily hiring freelance professionals with specific skills instead of permanently adding someone to their staff.

So the effects of freelance will soon reach human resources departments everywhere. And as more and more projects are completed online, with customers and freelancers having minimal or no face-to-face interactions, this could change the way HR departments work.

Furthermore, technology such as blockchain is further interfering with labor force regulations. If freelancers use blockchain-based platforms, HR departments may see even more drastic changes in the way they are executed.

Why is Freelance so popular?

Freelance has exploded in recent years. For employees, it offers the freedom to work whenever and wherever they want, and on their terms. Many of those who feel suffocated by the traditional office hours and the 9-5 environment welcome the prospect of being their leader.

For employers, especially those who run small and medium-sized businesses, freelancing is an economically convenient alternative to hiring full-time staff. Small businesses do not have the same financial freedom as their established counterparts. Therefore, hiring someone to be a permanent staff member, when the necessary skills are actually temporary and specific, is not a financial decision.

This is where freelancers come. Freelancers usually have very specific skills (eg web design, writing, editing, social media management and online marketing). If a company needs a completed short-term project, a freelancer with specific skills to complete the project is a great option. The two sides work together for the allotted time and partly once all the terms of their agreement have been met. This means that a company is not paying someone full-time for general skills that fit only to one business. In addition, freelancers do not receive benefits, so even smaller companies save money.

How does Blockchain fit all this?

Blockchain has master books that contain all transactions between those in a network. It is a safe, reliable, confidential way to store data. Furthermore, it does not have a centralized authority, making the odds of bias and corruption very subtle. In a network, it is not possible to make changes to the data in the system if most users do not approve. This adds an additional layer of trust and transparency among those involved in the network, as data can not be tampered with by an individual without the knowledge and approval of others.

So, how much does this affect human resources? Good, according to PWC, a lot! Blockchain has the potential to completely disrupt the way human resources departments are currently functioning. It would accelerate the process of verifying skills, education, and performance; it would be a cheaper and cheaper way to manage cross-border payments for international employees; it could reduce heavy data processes (such as managing VAT and payroll); and also increases IT security and fraud protection.

Verification of education and work history

A staggering one 75% of human resources managers say that they found a lie on a resume. Clearly, the curriculum is not always reliable. But the blockchain is. For example, with blockchain, students are able to possess a verified digital file of their diploma, which they can literally carry with them on their phones.

This makes the verification of education much easier, because human resource personnel simply need to verify the digital credentials of a potential employee. Instead of this process that takes weeks, Blockchain makes it smoother and more streamlined. Blockchain is also useful against the current assault of false degrees be bought and sold

Having education and work history on a secure platform as a blockchain-based system, those in HR can rest assured that the person interviewing is exactly who they say they are on paper. The costs associated with verification and verification of background could be significantly reduced. This could eliminate a lot of stress and distrust that comes from working in HR.

Management of employee mobility

A freelance advantage for freelancers is the ability to work anywhere. For employers, however, hiring people internationally can present a nice headache. Different tax laws and transfer costs are just some of the things that human resources have to face when paying an international employee.

Fortunately, blockchain is able to handle international money transfers and tax issues. The conversion of Bitcoin into the local currency of the employee takes place without problems within the blockchain, reducing the nuisance all around. Costs are also reduced by both parties, because third parties (such as banks) are not involved in transfers (so they are not even their often high fees).

HR and Blockchain: a fruitful partnership

Human resources departments would do well to take advantage of blockchain solutions, as its popularity shows no signs of diminishing. Using blockchain technology, HR departments could do their jobs more efficiently, selecting and controlling employees faster than before. They would also be able to easily manage international employees using blockchain and Bitcoin to make payments, knowing that the system would take into account tax laws. All this would be done on a decentralized and secure platform, eliminating the opportunities for fraud and distrust. The opinions expressed here by the contributors are their own.

Will Lee is the CEO of Blue Whale and Verlocal. Its mission is to convert people into individual business owners and maximize their full potential. Through its mission, it aspires to create a "human-centered" industry in which human beings can continue to develop and improve themselves through self-discovery.

Published 29 September 2018

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