Abstract
New technologies such as AI and blockchain will change the way human resource
departments operate. Our presentation will define these technologies and highlight their
applications to HR functions. We will cite examples of early adopters to these technologies and
the results therein produced. We will also explore the ethical and legal issues surrounding these
new technologies.
Introduction
Human resource is recognized as one of those industries which to a great extent does not
make its way into the world of science fiction books, and no child grows up with the thoughts of
revolutionizing the technology around this particular field. In the olden times, the human
resource was taken as a paper-intensive, non-innovative area, where workers get hired or fired,
salary decision are made and as an area where team building sessions are planned. However, it is
worth noting that behind the scenes, the human resource department is changing and highly
incorporating technology at a rapid pace, even if this technology was not designed for human
resource to start with. Technology in the human resource department is what this paper covers.
Technology Transforming the Human Resource Department
In the year 2015, Globoforce in collaboration with the Human Resource Management
issued a report that identified talent retention, competitive compensation, employee engagement,
as well as organizational leaders for tomorrow as the major human capital challenges. Due to the
presence of these challenges, innovation has been sparked inside human resource departments
across the globe. For instance, it is known by many now that social media is being utilized in the
process of recruitment, and it appears that more than ninety-one percent of recruiters always turn
to these channels as the means to identify as well as validate candidates. There is a 3% of
recruiters who may be less visible but who are part of a relevant innovation in the human
resource. These recruiters have moved beyond Facebook, Twitter, and LinkedIn and are
therefore piloting Snapchat as a recruitment tool. With all these great changes being realized, a
proper question might be; what are the technological innovations that will move the human
resource technology and its trends in the future?
Impact of Blockchain Technology in the Human Resource Department
Blockchain technology consists of an extremely secure way when it comes to recording
transactions that have occurred between two or even more parties. In this case, each transaction
is what is recognized as a block and blocks are joined utilizing cryptography generating a chain
of blocks hence coming up with the name blockchain. It is worth noting that blocks can never be
done away with or deleted. Therefore, because of the blockchain, there is a secure, unmodifiable
record of every single transaction. This technology has potential applications such as a
permanent record of food supply chains, management of legal contracts, identity management as
well as proving ownership of property. Blockchain technology can be utilized to add value to the
human resource department in the following ways.
Recruitment
Data validity that is made available through blockchain could offer both the organizations
and candidates increased confidence in the process of recruitment. This technology when used
properly could offer candidates a verified record of achievement, doing away with organizational
concerns in matters related to falsified information on curriculum vitae. For instance, college or
the university degrees would be added to a person’s blockchain-based curriculum vitae if only
the education institution validated their achievement. Human resource departments upon seeing
such on a candidate’s record of achievement would realize that it was a truthful claim.
The future of human resource department looks bright because of blockchain technology.
Through the technology, more informal achievements could be added to the blockchain through
a consensus between two parties a practice that will ensure that an individual’s claim that their
results had improved by 20% will be validated by the former employer so that the new employer
gains confidence in the ability of the candidate. All these would see human resource department
making tremendous steps to greatness.
Payroll
Putting blockchain technology in use in the human resource departments for global
payroll acts as the way to reduce the costs incurred because of intermediaries, for example,
banks, in verifying transactions and making sure that money is sent to the right person at the
right time. The technology would be of great help in human resource departments in the sense
that it would increase the speed of transactions, which would take place as soon as consensus is
reached as far as the blockchain is concerned and the new record of payment has been included
in the ledger. It is recorded that using blockchain for payroll is not a difficult undertaking; the
only challenge being experienced now is regulatory hurdles, particularly if the parties involved
ought to make cross-border payments. However, things are working out slowly in favor of the
technology and the future seems promising in this area.
Cybersecurity
Blockchain technology could be highly utilized when it comes to controlling who has
access to sensitive worker information as well as the only time changes occur is when authorized
parties make them. With this practice, the many issues we face today of employee information
being interfered with by unauthorized people will be over.
The employees because of the technology will be in the position to stay in control of what
information is stored or even changed about them. Therefore, cyber security through blockchain
is of great value to the human resource departments.
Smart contracts
When it comes to smart contracts, there is the use of digital technologies in signing
contracts, ensuring compliance over time, verifying them, all in a manner that no third-parties are
used. In matters related to recruitment, using smart contracts could result in issuing as well
accepting job offers extremely fast. When there is a shared blockchain between an employee and
the employer, it will aid in keeping track of all contractual changes that do take place through the
tenure of the employee. It is a technology that could be used to enforce conditional clauses, for
instance, releasing bonus payments every time achievements are met.
What the Future Holds
Blockchain has emerged as a new, embryonic technology, even in fields such as the
financial markets as well as banking. It is agreed by most commentators that blockchain
technology will result in the most significant initial impact due to its origins in this industry. As a
result of this view, the financial aspects revolving around human resource are likely to emerge as
the first to realize or see maturity in the application of blockchain for example, in matters related
to payroll and cross-border payments to the highly-mobile staff.
Jobs under human resource remit that happen to be expensive, labor-intensive or even
slow will be the very first to feel the disruption of blockchain technologies. This technology
could make the process of hiring far quicker, cheaper and accurate hence giving human resource
more confidence. Some blockchain-based platforms are made available that could be of interest
to human resource, for example, when dealing with the recruitment of freelancers. They utilize
the technology of blockchain in verifying skills by consensus. Through this, people are in a
better position to upload their portfolio as well as community votes based on whether they depict
competency as far as skills are concerned. What follows is that the skill is then added to
blockchain hence underpinning the profile of these people on the platform.
It is very proper for human resource professionals to ensure that they keep track of how
technology especially blockchain will affect the way the human resource function works and
carries out its tasks in the organization. However, it becomes of great significance for these
professionals to have a proper understanding of how the technology may disrupt other parts of
the organization. Because of dealing with financial services, the human resource may embrace
blockchain technology sooner than other industries, for instance, retail or publishing.
Examples of Blockchain Users in Human Resources
As we have seen earlier, blockchain technologies are highly proving to be wonderful
game-changers in the world of human resources. They can to a great extent innovate the ways
that applicants, recruiters, and even workers share confidential information with each other,
process payroll among many other functions. There is, however, a great concern if there are any
real-life examples of the technology being used or if it is just theory. In the human resource,
companies such as Smart Contracts, CanYa, as well as Blocklancer have taken a great in the
blockchain technology. All of these companies have developed the same goal-directed towards
coming up with easier ways for employees and employers to agree about terms of labor without a
middleman.
CanYan has for a long time been focused on decentralizing the distribution of finances.
Such practice is of great significance to human resources simply because it gives hints on how
workers will be paid in the future. When the blockchain technology was first established, it was
to support bitcoins but it made sense to CanYa Company which embraced the idea and started
revolutionizing the manner in which contracts are fulfilled and compensated. Bloclancer is
always seeking the opportunity to take full advantage of the increasingly gig-based economy to
make sure that there is an easy way for freelancers to find something to do as well as for
employers to access quality help. The company has utilized blockchain technology to assure
clients that no contacts or information can be changed or deleted without proper permission.
Lastly, Smart Contracts follow the same route. Upon the invention of blockchain technology, the
company makes it possible for workers and employers to establish contracts with each other
without the need for a third party. Therefore, some companies have played a tremendous role in
ensuring that blockchain technology is being utilized to some extent in this initial stage of the
technology.
Ethical and Legal Issues
The blockchain is viewed as a disruptive technology that to a great extent will change the
entire world in the manner in which the society is governed by humans, people and properties are
identified, databases are constructed and how businesses are made and grown. The great
concerns here revolve around the inherent characteristics of blockchain that can benefit the
society as well as promote what is known as more ethical ways to carry out business.
The technology is helping in improving engagement in the societies. The biggest problem
we usually have is seeing that the minority voices are heard. When such voices are listened to,
and everyone is taken care of, communities flourish. Blockchain has come to set a fair ground for
everyone. It just takes one to understand how this technology works and that is all about it. No
person is set aside as far as the technology is concerned. With this inclusiveness, a value is added
in the society, and it forms the basis on which companies dealing with this technology ought to
operate.
Diversity in disclosure is yet another ethical issue in this area. Participants in the world of
blockchain technology range from those people dealing with hedge funds to casual people in the
field of trading information. Taking the necessary steps to see that the platforms for discourse
consist of a tone that is welcoming, this plays a critical role. People coming together to converse
based on various issues forms the breeding grounds for funds, projects as well as companies.
The technology also involves regulatory concerns such as issues of jurisdiction and
applicable law as well. Even though the government of a country can not control the technology,
some nations are still hesitant in embracing it, and this has slowed down its operation. However,
observing the legal framework regarding the legal nature of blockchain becomes of great
significance.
Conclusion
It is worth noting that new technologies such as blockchain will alter the manner in which
human resource departments do operate. Technology is helping in making things easier in matter
relate to payroll, cybersecurity among other areas within human resources.
References
https://www.bbva.com/en/7-regulatory-challenges-facing-blockchain/
https://medium.com/@leanne_luce/evaluating-ethics-in-blockchain-and-cryptocurrencyinvestment-d59aeda69e51
https://www.smartscreen.tech/examples-blockchain-technology-human-resources/
https://www.investorsinpeople.com/resources/ideas-and-inspiration/HR-blockchain-humanresources
https://gethppy.com/hrtrends/technology-changing-human-resource-management
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