Published on September 12th, 2018 | by Guest0
Blockchain Technology: Is It The Future Of HR Payroll Systems?
Blockchain technology is the new raging trend in the human resource corporate arena, and it certainly is the new slogan amongst practitioners, senior executives and academicians. Blockchain is the technology that allows the usage of cryptocurrencies such as Bitcoin – it serves as an efficient ledger and pumps up organizational efficiency.
So, if we want to understand what exactly this revolutionary technology is all about – we can assume blockchain to be a decentralized and protected ledger that gives participating parties of a transaction a way to validate the information. Blockchain is a disruptive innovation that has the ability to speed up financial processes, cut out intermediaries and enhance organization flexibility.
Many business practitioners and senior executives have predicted that blockchain is poised to be the next mammoth transformation in the human resources field. Traditional payroll and HRIS systems have now taken a backseat, and blockchain technology is the new sophisticated platform that can help organizations accrue operational efficiency, smooth workflow management and a collaborative corporate culture.
Companies across the globe have already started to implement this novel technology and blockchain technology is now the future of human resource payroll software. This encrypted digital ledger is an extremely powerful tool that can manage huge volume of records and databases to bring about more accurate, agile and efficient transaction processes.
There is no doubt that blockchain technology is on the threshold of creating history as a pioneering invention of the current business era. Here are some amazing ways in which blockchain can influence human resource processes in your organization and its potential benefits:
- Streamlined Recruitment Process: The validation of employee history is often a costly and challenging task for the HR department of any organization. It is difficult for companies to collaborate with the details on resumes such as educational qualifications, prior job experience and skills. Blockchain technology could help in ascertaining these details and verifying the validity of employee credentials or certifications.
A blockchain-centric recruitment process can significantly reduce the time taken for completion and also increases the chances of a perfect job-candidate fit. Talent professionals view blockchain technology as a perfect solution that facilitates goal alignment along with human resource strategies of the organization, ultimately pushing accuracy, efficiency and output.
- Maintaining Digital Record of Employee History: Managing huge volumes of employee records and databases is one of the most critical functions of the human resource department. Blockchain is a trustworthy methodology that can store, edit and structure massive amounts of employee details such as their employee-related information – payroll records, insurance, work performance and employment history.
Potential employers and organizations can access this information in the digital domain, and get a clear picture about candidates in the employment market – thereby enhancing agility and transparency in traditional HR processes. Blockchain is surely a radical novel innovation that gives startups and companies the ability to match individuals to the most suited jobs in the market.
- Mobility in Payment Transactions: Sending out payments to international employees is costly, complicated and a difficult procedure – blockchain technology skips all the intermediaries or third parties to facilitate smoother payroll transactions. Blockchain provides a global solution for cross-border financial payroll payments, and thereby enhances employee mobility for organizational purposes.
It handles tax regulations, international expenses and conversion of cryptocurrency in local currency in an efficient manner to ensure timely and regular salary payments of overseas workers. There is no doubt that blockchain is truly a game changer in the human resource domain and the best way to thrust up mobility and convenience in payroll software function of any global organization.
- Fraud Prevention and Tight Cybersecurity: One of the most appealing aspects about the unique blockchain technology is that it is a highly secure mechanism and prevents any kind of cyberattack or data theft. The decentralized structure makes blockchain more secure than traditional centralized databases, as every block of information is completely encrypted and thus remains highly protected.
Information cannot be accessed with proper authorized and only digital keys with control access can view sensitive data. It is virtually impossible to break into blockchain information – thus, it is a completely safe platform that keeps your critical information well protected from fraud, phishing or cyber theft.
- Boosting Productivity: The human resource function often faces the burden of being the most slow, unresponsive and non-productive arena of a corporate organization. Blockchain technology has the power to create a more engaged workplace – it is highly automated and keeps the wheels of efficiency in motion by reducing tedious, time-consuming and manual administrative work.
Routine and data-heavy tasks such as payroll management, tax implementation and VAT administration are streamlined through automated modules, pumping up speed and overall output. Blockchain assists with 360 degree tracking performance, thereby optimizing employee work performance and improving all vital key indicators for better goal achievement.
The technology of blockchain is still in its infancy; however, it is definitely one of the freshest and newest ideas to hit the human resources ecosystem! It is the backbone technology behind Bitcoin and has intrigued business executives across a spectrum of industries. Blockchain ensures the authenticity of payroll transactions, and removes any third party from the equation, thereby augmenting the pace and agility of the process.
Blockchain can change the dynamics of the traditional payroll function in the organization. It leads to a minimization of falsification of employment data, and makes it super easy for employers to check worker qualifications, work history and credentials. Utilizing blockchain for payroll is also more secure, and eliminates the requirement of constant safety checks due to the in-built protection mechanisms prevalent in the system.
Blockchain is the latest buzzword in the corporate world – it is high time to adapt to this groundbreaking up and coming technology to give your organization a competitive edge in the market! It has the unending potential to break barriers and disrupt multiple industries in its quest to structure the human resource function. So go ahead and invest in blockchain technology to drive your bottom line results to the highest levels possible!
Hitendra Singh Rathore is the Digital Marketing Executive and software analyst at SoftwareSuggest and loves helping people plan, optimize and launch marketing strategies. He has spent the majority of his career in SaaS industry gaining experiences in areas such as Asset Management Software and sales force automation software analysis. While Digital Marketing is his primary job function by day, Hitendra also enjoys spending time with his family and listening music.