Adapt To the Blockchain Technology To Smoothen Your HR Work With Added Security

People often do not consider blockchain technology beyond the realms of Cryptocurrency. But the application of Blockchain technology is truly unfathomable. From secure and super-fast banking, to secure data transfer, to tamper-proof long-term data storage. There is an amazingfield which people often do not consider HRM or Human Resource Management. If you are aspiring to become a HR Manager then Blockchain can give you an ultimate edge to your day to day tasks and efficiency.

Traditionally, HR management systems are too paper driven and losing of data, forgery of papers, and safe-keeping of data was a challenge. Now, if you are a HR Manager, business owner, company secretary, accountant, or even software developer, then you need to know how digitization like the internet and various HRM Softwares have made things efficient. The blockchain technology is the next step in the evolution.

Understanding The Blockchain Technology

In easier words Blockchain is a decentralized ledger technology where the records are kept in a decentralized form. Generally, in any corporation the data are stored in one or more servers with a centralized access control authority. The centralized model of data storage has several disadvantages as they are prone to hacking, data tempering, and data theft. Even if a company hires a cyber security analyst, still the chance of hacking and data theft remains strong.

On the other hand, blockchain’s decentralized digital ledger technology keeps a record of every transaction across several devices or computers in a way that security, transparency, and integrity of data and all the updates are made on them. Each record is called a “Block” and every block is connected with its previous block like a linked list through various cryptographic principles, forming a “chain” or line of interconnected blocks. This structure makes it nearly impossible to alter or delete information without detection. This way, the blockchain keeps itself temper proof as if a hacker or someone with an ill mind wants to change the data he/she has to change every connected block and that is close to impossible.

Why Blockchain for HR Documents?

The HR department deals with mountains of information which are highly sensitive and confidential documents. That includes personal data, payroll details, details of prospects, even business partner details. The introduction of blockchain technology for HR can transform the way these data handling is done through several key benefits.

1. Enhanced Security for the Data

Blockchain’s cryptography algorithms ensure the data is stored securely. Each block of data is encrypted and linked through a secure chain, making unauthorized access and temparring almost impossible.

2.?Unmatched Transparency and Accountability

Blockchain’s ledger keeps track of every transaction which could be addition, deletion, and update through it’s secure ledger. So, if someone changes a piece of data block without prior authorization he/she will be easily apprehended. With blockchain each record can be traded back to its origin which ensures? Transparency and Accountability of the users.

3.?Data Integrity

Once a data or document is added to the blockchain, it cannot be altered or deleted without a prior consensus of the entire network. This immutability ensures the integrity of HR records.

4.?Decentralization

Unlike traditional databases, blockchain operates in a decentralized network of computers. This reduces the risks of a single point access control failure and enhances the data availability and reliability throughout the network.

Applications of Blockchain in HR

Introduction of Blockchain for HRM is a true game changer. With the highest potential to revolutionize the industry. It brings several key benefits, some of them are described in the following:

1.?Payslip Management

Blockchain can streamline the process of generating and distributing monthly payslips. Each payslip can be securely maintained in the blockchain, ensuring none of the employees can tamper them. Additionally, payslips are easily accessible by the employer and employees. This reduces the disputes over salary payment and provides a transparent record of salary history.

2.?Safekeeping of Employee Records

Blockchain can be used to maintain comprehensive and secure employee records. This includes personal information, performance reviews, on job training certifications and records, and all other employee related data. The decentralized nature of blockchain ensures all these records are accessible only to the authorized individuals.

3.?HR Letters and Contracts

Employment contracts, offer letters, and other HR-related documents can be securely stored and managed on blockchain. Digital signatures can be used to validate these documents, ensuring their authenticity. This also simplifies the process of verifying employment history and credentials of a new employee.

4. Better And Easy Deployment Of Human Resource

As all the employee details, their credentials, their newly completed training and certifications can be accessed all at once, it will become easier for a HR Manager to assign new projects and tasks. This will reduce company and overhead

Best Practices For Implementing Blockchain In HR

The job profile of a HR Manager is ranked as the 35th most promising career of the decade by the Wall Street Journal among 800 different careers and is based on the wages and projected annual demand by the Bureau of Labour Statistics (BLS). But with the blockchain the rank can be increased even higher with the following feature.

1. Choose the Accurate Blockchain Platform

Kaleido, IBM Blockchain, TechMagic, Paystand, and? Chainstack, are some of the top blockchain solutions for HR Management, But all these have their own set of advantages and disadvantages. Some of these are based on Ethereum, Hyperledger Fabric, and Corda. Each offers different features and displays capabilities. So, it is crucial that you choose the right one that aligns with your security and functionality requirements.

2.?Ensure Regulatory Compliance

HR Departments are required to comply with various regulations regarding data privacy and security, such as following the labor law to ensure the company policies are in line with them. HR Manager needs to ensure that the blockchain implementation follows the local laws and guidelines to avoid any legal issues.

3.?Integrate With Existing System

The blockchain based HRM system should be easy to integrate seamlessly with the previous technologies your company had maintained previously. This could involve working with software vendors or developers to get the accurate custom solutions for your organization.

4.?HR Training For Blockchain Integration

The HR team is needed to get trained for the modern day blockchain technologies and its benefits. Companies could provide training on how to use the new blockchain technologies with ease and maximize its potential for a successful adoption.

Challenges And Consideration

Implementation of blockchain technology has some unique challenges on its way.

1. Scalability

Blockchain networks can face severe scalability issues, especially when the volume of data is very high. It is required to be ensured that the chosen platform is capable of handling the data and HR Department’s needs.

2. Cost Effectiveness

Implementing blockchain technology can be expensive as it is in its early stages of development. So, you need to consider the costs of the development, integration, and maintenance.

3. Technical Expertise

Smooth operation of Blockchain technology requires specialized knowledge and skills. So, the HR team may require additional training or hire experts to fulfill the technological demands.

4. Regulatory Hurdles

Navigating through the regulatory landscape with blockchain can be a little complex as the world is still waiting for a proper law for data protection and privacy laws. So, as a HR Manager you need to be expert on following the current labor law trends of your operational territories.

Conclusion

Blockchain technology holds the unmatched potential to revolutionize the way HR departments manage their day to day tasks and secure the critical documents. By adding enhanced security, throughout transparency, and unparalleled data integrity, the blockchain technology can help the HR Professionals streamline their flow of work and protect sensitive information. While implementation of blockchain for HR comes with its challenges, the long term benefits outweigh the initial hurdles. As organizations continue to adapt to these innovations the future of HR management seems to be promisingly digitized and secured.