Blockchain is a developing technology for cryptocurrencies. Without any central authority, it helps maintain an auditable ledger of transaction history on anything purchased. Basically, there’s no middle man anymore, it’s a transparent market for the transaction of goods and services without the time it takes to log transactions and the cost and labor that comes with this.
You’re essentially able to see the transactional history of any product through nodes or blocks, and if one were to attempt to falsify a node, it would be rejected immediately. So what your getting is complete transparency when it comes to your money.
But, what does this have to with recruiting? We’re still a year or two away from seeing the mass adoption of blockchain technology in spaces such as the recruitment industry, but it’s potential cannot be denied. Here’s why:
The concept of blockchain can also be applied to individuals. Something along the lines of a digital ID that gets tracked using the concept of the blockchain, where you are able to see a full history of candidate’s school transcripts all the way to their work experience. A no-bullshit list of a candidate’s professional and educational history that has been verified by their employers, universities and more.
As you might already know, the traditional background check is far too slow and expensive. It’s also a burden on candidates who don’t want to waste time filling out forms. So through blockchain technology, you will see significantly less time spent on calling employers to verify backgrounds, as well as less money spent on outsourcing background checking services.
And more time spent doing your actual job, which is matching the right candidates with the right jobs.
As recruiters, we find ourselves paying job boards for access to CV’s that have been stored in their databases for ages. These CV’s might be old and unrepresentative of that candidate.
They might even be totally fake, as falsifying what goes into CV’s has become too easy to do nowadays. We’re constantly seeing people who slip through the cracks, such as Yahoo’s former CEO, Scott Thompson, who quit the company after less than six months due to accusations that he falsified a computer science degree on his CV.
Using the concept of blockchain technology, we would have a real database of resumes, owned by the candidates themselves but where their qualifications and achievements are verified, and accepted, by the companies they had worked for in the past and the schools in which they attended.
We will be able to collect a log of a candidate’s history, and much of the time involved with verifying a candidates’ CVs are eliminated. So there’s no falsifying or fakery. It’s an authentic display of a candidate achievements, education, and qualifications.
Candidates will also reap the benefits of blockchain technology, as it allows them to apply to roles knowing they are actually qualified for the role, and more importantly without worrying that other candidates might be applying with fraudulent resumes and qualifications.
The transparency within this system ensures a level playing field for all candidates. So it’s in many ways a win-win for both the recruiter, who is getting the most ideal and qualified candidates, but also the candidate, who is confident that they have the right credentials and skills to excel in the role.
The potential of blockchain cannot be ignored, but with any type of technological innovation, we can’t know for sure how it will affect our businesses. What we know for sure is that we have to keep up-to-date with emerging technologies in order to continue the on-going development of the recruitment space.
Technologies like blockchain only make our jobs easier and make us as recruitment professionals more efficient, effective and productive. So I implore you to stay up to speed with blockchain technology so when, or should I say if, it’s use case becomes more widespread, you are prepared to embrace it.