The recruitment industry and hiring processes haven’t seen much of an evolution since the dawn of the internet in the 1990’s.
CVs, in-person interviews, checking university transcripts and references are processes that have seen little or no change in the past 100 years. Barring video interviews, there have been no technologies and platforms that have radically changed the way we hire. Sure, plenty of companies have touted the next big thing and offer platforms that promise to revolutionise how companies hire, but none of these have been mass adopted.
But how we hire is ready for disruption, and blockchain technology may have the most significant impact on how we recruit since the birth of the internet and Web1.0.
Web3 enables new hiring ecosystems
Web3 is a decentralised platform for building applications. It’s a new type of internet and way of doing things online. The Web3 Foundation describes it as “a suite of protocols that can be used to create web applications which are peer-to-peer, open, transparent, secure and decentralised.”
Blockchain technology has many benefits over traditional systems when it comes to hiring
- Transparency - you can see what your candidate has done in the past
- Authentication - you can easily verify your candidate's credentials
- Security - only those who have permission can view sensitive information about candidates or clients
Transparent, authenticated and secure identity
Blockchain is a distributed ledger that can be used to record transactions of any type. Blockchain is also a permanent, immutable record of transactions on the network. The blockchain platform is decentralised, meaning there’s no central authority to approve or deny transactions. It’s transparent because all participants in the network can see all activity and participation on it.
Blockchain technology is secure because it uses cryptographic signatures to ensure only authorised users have access to data stored in its public ledger. Finally, blockchain systems are trusted because they provide full transparency into everyone’s actions and have been proven over time through use by thousands across industries worldwide.
Currently, CVs are typically in .DOC or .PDF format, and easily edited. In fact, many recruitment companies butcher a candidate’s CV before sending it to their client, changing the layout, adding or excluding bits and reformatting it into their format. This is a practice I’ve always been against, it’s a massive waste of time and who are recruiters to change anyone’s CV?
A NFT based CV would stop these problems. NFTs, by their nature, are exclusive, they are verifiable, and if you made any changes to the CV, you would have to mint a new NFT. Companies could easily access the CV and there’s even the opportunity to monetise its access (Think Play2Earn).
Authenticated qualifications
One of the most promising aspects of blockchain is the ability to verify credentials. The technology allows for a record-keeping system that is transparent, immutable, and decentralised. This means that when you apply for a job with an employer that uses blockchain technology in their hiring process, they will be able to verify your qualifications before you ever even set foot in the door for an interview.
Certificates can be authenticated by third parties (such as universities), meaning there’s no need for employers - or their HR departments - to do any checking themselves; look up your record on a public ledger and presto! No middleman required.
Automated verification
With automated verification, you can quickly verify a candidate’s identity and employment history without manually checking their references. Using AI and machine learning, your background check software will comb through the candidate’s social media accounts and other online footprints to find evidence of criminal activity, poor work performance or misconduct.
Assured identity management
Assured identity management is critical to the success of the hiring process. It’s impossible to know who someone is or whether they’re telling the truth without conducting a thorough vetting process, which takes time. You need an accurate picture of who you’re dealing with before you can decide if they are fit for your position and worth investing in.
Blockchain technology has created many opportunities for change within our existing workforce structure. One way it can be especially helpful is by providing organisations with an immutable, decentralised platform for identity management (think: something like LinkedIn). By leveraging this technology, recruiters can be sure that their job candidates’ information is accurate from start to finish—no more fake CVs!
Programmatic payments
The first common blockchain application for hiring is programmatic payments. Instead of paying in fiat, you can pay with cryptocurrency—and it’s automatic. The amount will be transferred via an Ethereum smart contract, and the recipient will have complete control over the funds. This means they can spend them whenever they want, but they won’t be able to lose them or be defrauded into giving up access to their own money (because there are no middlemen or third parties).
The second application involves smart contracts to automate payouts across borders and currencies—or even within different cryptocurrencies at once!
Conclusion
What does this mean for the future of hiring? We’re still a long way from seeing Web3 and blockchain technology implemented across the industry, but it’s clear that they hold huge potential to disrupt the way we hire. The technology can be used to reduce costs, build trust and transparency between candidates and employers and make hiring more efficient.