Blockchain: Are you Ready for the Next HR Revolution?

The field of human resources is being shaped by decidedly digital disruptions. Is your organization prepared for what's next?

I've spent my entire career in the HR and technology industries, and I've never been more excited about the possibilities that lie ahead. From chatbots that screen candidates, to human cloud platforms, to sophisticated VMS tools, technology is already transforming how HR is practiced and how workforce solutions are implemented--and we're just getting started. AgileOne is helping companies anticipate the possibilities and navigate the powerful intersection of technology and talent. It's an exploration that requires a closer look at blockchain, an emerging technology with the potential to upend nearly every aspect of the HR industry. Blockchain might sound far-fetched or futuristic when there are so many priorities competing for our attention today. But early adopters have already begun using blockchain-inspired approaches to HR, and I believe companies that embrace disruption are best equipped to succeed when the future arrives. With that in mind, let's take a closer look at some blockchain fundamentals and how companies can begin preparing for its impact on their organizations' talent strategies. 

Understand the Blockchain Basics

Defining blockchain can be challenging, in part because it's so vastly different from anything we use today to manage work and transactions. Let’s look at the three core components:

• Distributed ledger technology that creates an open, decentralized database of transactions. You can think of “blocks” as records—for example, details about payments or background screen results—with a series of blocks forming a “chain.” All network participants have access to the distributed ledger, so transactions only need to be recorded once. This eliminates the duplication of effort that slows down many of today’s business processes.
• Immutable records that cannot be changed by anyone. This unprecedented level of reliability is a key advantage of blockchain. Once a transaction is added to the ledger, it is permanent. If an error is made, a new transaction must be added to correct it, and both the mistake and its fix are visible to all. Essentially, this creates a single source of truth that is both transparent and tamper-proof.
• Smart contracts that execute actions automatically. These contracts are made up of “if this, then that” rules that form the basis for fast, fully automated processes.

If that sounds vague or theoretical, consider some of the applications for HR. Companies could use blockchain to quickly conduct background screenings, verify candidate credentials, and safely maintain sensitive employee information in compliance with GDPR. Global organizations could use blockchain to automatically calculate exchange rates and communicate with intermediary banks so cross-border employees can be paid quickly and accurately.

Employees could create digital ID’s that detail their skills, education, and work experience—and control who has access to that data and for how long.

Start the Blockchain Journey (Whether You’re Ready or Not)

Even if your organization isn’t actively implementing a blockchain solution today, there are steps you can take to prepare for a successful transition down the road.

• Embrace the inevitability of blockchain. This is not just another technology trend. More than 80% of executives in a 2018 PwC survey said their companies were already involved with blockchain. In April, Forbes issued a list of 50 $1B+ companies that are actively testing or implementing blockchain, including European giants like Maersk, ING, Allianz SE, and UBS. From processing payments to remote farmers, to ensuring the safety of baby food, to speeding up insurance claims, and hundreds of other uses, many of the world’s most influential companies are forging the future of business by embracing blockchain-powered innovation. As these powerhouse brands accelerate their use of blockchain, the ripples will be felt throughout their massive global supply chains, driving further adoption and transformation across companies large and small.
•  Leverage partnerships to gain momentum. While the billion-dollar players are driving blockchain adoption from the top, small-to-midsize firms often have agility on their side. The combination of resources and agility is a powerful one. At a recent ProcureCon event, I spoke with a leader of European operations for a Global 100 firm who was eager to find other companies that were implementing blockchain. As with all new technologies, the early stage of the adoption curve holds tremendous promise. By educating yourself about blockchain and preparing yourself for conversations with clients and suppliers, you’ll be ready to seize partnership opportunities as they present themselves.
• Strengthen your change management capabilities. To quote my AgileOne colleague Brian Clark, “Getting change right starts with people. We won’t see results if we leave out the human element.” With the digital disruption that blockchain will bring, HR organizations are on the front lines of a renewed need for effective change management. Business leaders will be pushed out of their comfort zones and faced with redefining core company processes. Employees will want to understand how their work is changing. Suppliers will need to adapt to new procedures. As the discipline continues to transform, HR leaders will be called upon to guide their colleagues through yet another wave of change. While blockchain’s capabilities are impressive, companies will ultimately need the resilience and passion that only people can deliver.    

As IBM CEO Ginni Rometty said, "Blockchain makes it possible to reimagine many of the world’s most fundamental business interactions and opens the door to new styles of digital interactions yet to be imagined.”

That sense of imagination is alive and well at AgileOne, and I look forward to seeing where blockchain innovation takes us next.

Want to learn more about the impact of Blockchain on the workforce solutions industry?

Hear from AgileOne’s founder, Janice Bryant Howroyd in this Forbes article, as she shares how blockchain technology can create more efficient and effective workplaces.