How Blockchain is Revolutionizing The Hiring Process

Employers can significantly reduce time spent on identity and employment verification with the help of blockchain.

21Feb

Blockchain is best known as the technology that drives bitcoin. However, in addition to driving this popular cryptocurrency, an increasing number of people are now recognizing the potential for blockchain to add value to a host of other industries and processes. Surprisingly, one of them being hiring.

Before going into further details, I’d like to quickly recap the main concept of blockchain. Essentially, it is a verification system. For bitcoin, it’s used to verify financial transactions. Because it uses a distributed ledger, transactions cannot be deleted, forged, or altered. Other uses include using blockchain to store and track vehicle registration and maintenance records. For hiring, blockchain may prove to be the ultimate form of employment verification.

The Most Time Consuming Part of The Hiring Process Adds The Least Value

So much of the hiring process is dedicated to the task of verification. Hiring managers must take the time to verify employment and education history, check references, and ensure that candidates actually possess the skills they claim to have. Not only does this take up too much time, it’s an imperfect process.

First, because of liability issues, many companies are resistant to give anything beyond the most basic information about their current and former employees. Some will only verify whether or not the candidate worked for them and dates of employment. In addition to this, it’s relatively easy to falsify references and employment history. There are even services online that will assist in this process.

Even if it were absolutely possible to verify employment history and skills, the time spent doing that can be better used on more valuable tasks. If this process could be automated, hiring managers could focus on getting to know candidates. This means more time spent determining whether or not candidates are a good match for the company culture, and assessing soft skills.

Candidates Struggle With The Hiring Process as Well

It’s not just the recruiters who are inconvenienced by this process as well. Job seekers must keep track of references, remember employment dates, and provide proof of their skills and accomplishments. This becomes more complex when job histories are long and complicated, even more so when past employers change hands or go out of business.

Today most people choose to use some free resume templates to cut down the time on organizing their personal information. A lot of job portals also support the option to import your cv from LinkedIn or another professional network your are part of such as Dribbble or GitHub. This certainly streamlines the application process for both parties. However, blockchain can propel this one step further and allow candidates not only to securely store and share all their personal information and credentials, but also have them automatically verified and securely delivered to the potential employer. The blockchain can enable candidates to create comprehensive personal profiles with data pulled up from multiple sources and share them with 3rd parties in one click.

Using Blockchain For Resume And Employment Verification

Imagine an unhackable ledger system that could be used to record details about employment history. Think of all of the claims a candidate makes on their resume. Each of these could be thought of as transactions. If a candidate says they graduated from USC, that’s a transaction. If they claim they worked for Monsanto between 2012 and 2017 that’s another transaction. Skills, job titles, salary, reason for leaving all qualify as transactions. By using blockchain technology, each of these ‘transactions’ can be verified by the relevant organizations. Once this is done, it never needs to be done again.

In addition to this, a picture of the candidate along with their personal information can be stored and verified as well. This ensures that the candidate is who they say they are. This is important for any industry, but especially valuable in fields such as healthcare, finance, and law.

Blockchain is proving its capability to add value to any industry. By implementing it in the hiring process, employers can significantly reduce time spent on identity and employment verification. This means more time focused on truly getting to know candidates. Not only does this mean a better hiring process. It means the hiring process will take less time, and be less expensive.

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