Blockchain technology has ushered in a wave of revolutionary changes across industries, from increased security and transparency to close-to instant access to borderless, trustless payments. Although its earliest applications were limited to peer-to-peer crypto payments with its first use case being the public ledger for Bitcoin transactions, over the subsequent 15 years, it has been seamlessly integrated into a diverse range of operational processes for businesses of all kinds.
This mass expansion is evidenced by the sheer number of companies outside of the crypto sphere that have adopted blockchain technology: in a body of research conducted by Casper Labs and Zogby Analytics, it was found that 90% of businesses surveyed had employed blockchain technology to some capacity.
Breaking away from its crypto roots, blockchain technology has evolved to underpin vital processes in industries that range from traditional finance to insurance and healthcare. While financial entities have come to rely on applications of blockchain technology for secure and transparent transactions, healthcare providers have leveraged these same properties to enhance patient data security and interoperability.
Supply chain management has also meaningfully benefited from blockchain technology’s ability to foster trust and transparency with respect to the tracking of goods, and the insurance industry has capitalized on similar advantages, using it for efficient record-keeping, claims processing, and fraud prevention via smart contracts and distributed ledgers.
As blockchain technology has continued to establish itself as a crucial player across business operations, few areas have benefited more from its diverse applications than human resources and workforce management. Whether you're a web3 startup, DAO, marketing agency or traditional enterprise, bringing more of your People and Ops functions on-chain can reap meaningful benefits for your company and team.
Transforming HR with Blockchain Technology
In 2023, human resource departments have come to be recognized for the pivotal role they play in facilitating workplace transformations. As the backbone of an organization, embracing the future of work begins with HR. Today, some of the most radical and innovative shifts involve their adoption of blockchain technology.
Streamlined Hiring
One of the key places where HR can optimize operations through the use of blockchain technology is with respect to hiring. Extensive data indicates that the traditional processes involved in hiring an employee come at an average cost of $4,700.
From talent acquisition and background checks to the automated verification of a candidate's credentials, blockchain technology not only significantly reduces the cost of recruitment and hiring but also streamlines and secures the associated processes.
In the preliminary stages of hiring, blockchain technology reduces resume fraud through immutable record keeping and cryptographic verification. Candidates can store their educational qualifications, certifications, and work experience on a blockchain, and, once added, these documents cannot be altered or falsified. Background checks are thus made more efficient and secure through access to these blockchain-based databases.
The same concept is true with respect to verifying a candidate’s credentials; these blockchain-based databases allow for automated credential verification through secure access to educational and employment certificates and documentation.
A core feature that distinguishes blockchain technology from its predecessors is its inherent decentralization. Rather than using a costly middleman, records can be shared directly between candidates and employers through each party's digital wallet and a decentralized identity verification platform.
International Fiat and Crypto Payments
One of the most well-established use cases of blockchain technology lies in the domain of payroll and remittances.
The steady rise in global companies adopting remote work models has caused the demand for cost-effective borderless payments to spike. Traditional options for remunerating global teams are notoriously slow and expensive, with international wire transfers taking days to arrive and costing up to $50.
Blockchain technology provides a solution to these cumbersome and cost-inefficient solutions. Transactions on blockchain networks such as Arbitrum can be completed within 15 seconds with transaction fees amounting to as low as a few cents.
On top of the ease of blockchain-based payments for international payroll, the ability to remunerate workers in crypto has its own benefits. With 50% of gen z and one third of millennials eager to receive a salary in crypto, offering compensation across a diverse range of currencies presents a compelling advantage in today’s hyper-competitive hiring landscape.
Data Security and Privacy
When transacting on blockchain networks, there are no trusted intermediaries. Rather than being secured by authorities that are susceptible to corruption and user error, blockchains are secured by cryptography, mathematics and software that is not controlled by any one person or group of people.
In addition to the security layer, with blockchain technology, individuals have heightened control over their personal data. In the web2 paradigm, most services that are provided free of cost, while seeming like they are public goods, are gathering user’s data as a primary income stream. In web3, due to the lack of a centralized platform controlling the protocol, there is no inherent need to generate income via data mining. As a result, when engaging with web3 services, users run fewer risks of having private information mined and sold.
Privacy is a fundamental feature of blockchain-based interactions since transacting takes place through cryptographic addresses or public keys rather than real names and personal information. With DAOs, for example, contributors participate in governance, vote on decisions, and receive compensation for their work, all through their digital wallets or other forms of on-chain identity. This new means of identity verification thus eliminates the need to disclose any personal information.
Smart Contracts for Employment
Blockchain technology is revolutionizing the process of drafting employment agreements through automated contract execution and transparent, tamper-proof agreements. A template for a standard employment contract can be coded into a smart contract, which specifies terms and conditions such as salary, job responsibilities, project expectations, and work hours.
When a job offer is extended and accepted, the smart contract can be triggered automatically, generating a customized agreement based on the predetermined terms. This agreement can then be stored on a blockchain, providing both parties with an immutable, transparent and tamper-proof record of the employment contract.
The Benefits of Incorporating Blockchain Technology into HR Strategy
For companies ready to embrace the future of work, the integration of blockchain technology into human resources is a critical first step. The multitude of advantages that blockchain technology brings to HR processes, from streamlined hiring to data security to global payroll, have the power to transform an organization’s operational performance.
In order to effectively implement the vast array of blockchain technologies, it is necessary to start by analyzing available solutions and determine the best fit for an organization’s structure and needs- while there are many products currently on the market, there are few that address the full spectrum of payroll and people management needs for the web3 workforce.
Rise is an all-in-one payroll and compliance solution that streamlines global payments in fiat and crypto, automates the hiring process, and handles global tax forms.
Rise supports a wide range of treasuries that include crypto held in digital wallets and fiat held in traditional bank accounts. With its unique and flexible dual payment infrastructure, Rise unlocks seamless routing between fiat and crypto. Organizations can fund payroll in the currency of their treasury, while contractors can withdraw payouts in their preferred currency, from a selection of 100+ cryptos and 90+ fiat currencies.
A critical feature of Rise’s infrastructure is the RiseID, a unique smart contract minted by each user. Leveraging the ERC-725 token standard, the RiseID allows both contractors and businesses to identify themselves and authenticate transactions from Rise’s payroll smart contracts without ever having to reveal their identities or personal information.
The process of hiring and onboarding is streamlined through Rise with automated PSAs and SOWs, and identity verification in minutes with Rise’s KYC checks.
Schedule a demo today to learn how your company can harness the growth potential of blockchain technology with Rise.
