Using Blockchain Technology for HR Recruitment, Why Not?



Aug 31, 2018

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The digital era is evolving, including the recruitment culture within the companies. The conventional manual method is commencing to be superseded with the database digital system. Big chance within next years, the restrained manual method would be completely vanished, adjusting to the blockchain technology.

The technology and HR experts gathered to discuss the potential of blockchain in their working field. PricewaterhouseCoopers, the world's giant auditing company found out some interesting facts.

Until now, the utilization of blockchain is still identical to the digital payment and capital market. Somehow, the blockchain technology can be implemented in employee recruitment system. Furthermore, by doing this, the company could perform more effective in conducting the verification and database of the candidate.

Besides all the conveniences of the digital process, there is one more important thing. Using blockchain in the recruitment matter or HR as a whole will prioritize the personal data privacy, prevent the fraud, also the simple alternative to crosscheck the candidate's profile.

Blockchain Technology, Are You Ready?

The topic of blockchain is not a new thing for HR people. It is very popular and often becomes the trending topic. Moreover, recently there is a growth of companies practicing this system in order to help them find the perfect candidate profile.

The CTO of Peoplewave, Phil Aldrige, stated some fascinating facts related to blockchain in his interview with Human Resources. There are some new facts revealed and we summarized it for you in this article.

What Is Blockchain?

The blockchain technology was created by Satoshi Nakamoto Institute back in 2008, applied to record the bitcoin transaction. So, it's obvious that the blockchain technology is related closely with the bitcoin. Instead of the old recruitment system with the manual record, in the blockchain, everything is connected digitally. If there is any change, it will be updated to all people with access to the database. In contrary, the former database system tends to be centralized to one computer with the risk of corrupted files.

Interestingly, inside the blockchain technology system, the network should verify any alteration, no matter how small it is. It means all the data are trustworthy and authenticated.

So, let's see the highlight of using blockchain in the HR world:

How Beneficial Is the Blockchain for HR World?

Obviously, the answer is very very beneficial. The database recorded in blockchain is error-free, transparent, and secure. Every single data is verified. It means, the company can possess the information detail comprehensively.

It's definitely normal if the HR recruitment faces some difficulties, in the blockchain era, it's time to say goodbye. Here are few of them:

- No more long decision making hence the organized data. Moreover, the company can pick the decision quicker or shortlist the candidates who meet the requirements with less effort.

- The budget efficiency for the recruitment process would be lower and much more valuable. For example, if there's a candidate applying now, but he worked for your company 5 years ago. In an old-fashioned way, his data could be gone. But in the blockchain, every single data could be traced easily.

- The data verification process is guaranteed, considering the importance of transparent candidate credentials. The long process could be replaced with digital verification.

What Area Can Use Blockchain?

It's unlimited and there are numerous ways to apply blockchain technology. Besides the efficient recruitment and digital verification, you can also have an automated payroll. Most noteworthy, the blockchain system could prevent the fraud or cybersecurity.

Here are 6 examples of how blockchain could verify and validate the data:

- Current Working Details: company name, position, date joined

- Previous Working Details: company name, last position, date joined and quit Education: institution, complete qualification with level information, graduation date

- Training: institution, course, date of course taken

- Skill: hard skill and soft skill

- Performance: the performance in the previous company

How to Adapt with Blockchain Technology:

From all the impressive benefits mentioned above, it's time for the company to accommodate the blockchain technology within the recruitment process. Essentially, it's not just about the recruitment, but also the database record of all the employees.

So, start to socialize the perception about blockchain to everyone involved with this matter. If necessary, join the course or look for the valid information from the Internet.

Additionally, find out your company's biggest obstacle in HR. State it to your vendor who will collaborate in developing the blockchain system. For example, by using blockchain, you can easily facilitate the overseas payment and also employee contract.

What Need to Be Anticipated?

But please bear in mind, there must be an obstacle in adjusting to the new innovation. The adaptation process won't be smooth. Blockchain with the distributed and secured database should be observed under the data regulation privacy like the General Data Protection Regulation.

Besides, it's also critical to know the person or company who will supervise the blockchain of your company. Know the track records. Above all, look for the qualified and the one who can understand your company culture. In accordance with that, the people from the company who handle this should understand the programming language.


Within a blink of an eye, the companies are pursuing the benefit of the blockchain. The race has begun, join now to avoid the risk of left behind.

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