homeblogBlockchain Technology’s Role in Recruitment

On this page:

Blockchain Technology’s Role in Recruitment

Interest in distributed ledger technology has increased by 2000% since 2013. This is large because it can be used in almost any industry. Blockchain recruiting allows you to solve a wide range of problems, simplify recruiting as much as possible. The technology can fundamentally change the principle of operation of the industry.

The main HR problem these days

Personnel selection is one of the most important aspects of the harmonious development of a company. After all, it takes the ability to assemble a team of professionals who will be able to cope with any order as quickly and efficiently as possible. At the same time, many recruiting mechanisms have long been outdated and do not justify themselves.

The role recruiting blockchain is that this technology allows you to check the veracity of information about a person who is looking for a job. There is a trend that 60% of people in the world use false information on their resumes to appear much better than they are. So they can:

  • Indicate skills that are not possessed;
  • Give false information about education or previous work experience;
  • Do not post data about bad reviews or recommendations, but only display positive ones.

In addition, practice shows that millennials are used to changing jobs approximately every 3 years, often moving from one company to another. This leads to the fact that employers must often carry out the procedure for finding new employees. It makes no sense to hire people, knowing that they will not stay for long.

If there were a common information system similar to the one that functions in the banking sector, then it would be as simple as possible to check all the data. Blockchain experts propose to create a unique program, thanks to which the employer will receive the most complete information about a person.

Complete data security

Blockchain technology is designed in such a way that all data is safe. At the moment, this is one of the most secure databases, so you can be sure that you are getting the most truthful information. It is unchanging, a person can only complement it. This avoids fraud at any level. The documents stored in the system cannot be forged.

The blockchain job board allows a person who is looking for work to view all the vacancies of the company, what conditions it offers, as well as basic information about the company - what it does, how long it exists, whether it was involved in a scandal, and much more. It builds trust and also encourages people to do business with your company.

The talent pool is constantly on the move: some employees quit themselves, while others have to be fired because they don't do their job well. The recruiter must review the performance information of each employee, making decisions on how to motivate the person to perform better.

All data about the work done can be stored in the blockchain digital application. It will record all delays and overtime, the amount of work done, results, and much more. Such datum allows you to see who deserves the bonus, who can be offered an increase, and who, on the contrary, should be shown the door.

Reducing electricity consumption

As a rule, storage and processing of a large amount of information involve the use of special equipment that consumes a lot of electricity.

If you combine the hr blockchain with artificial intelligence, HR specialists can shift some of their responsibilities to a computer. They, for example, can conduct an initial interview using chatbots or an answering machine. The system will filter out applicants who are not suitable for employment.

Block chain jobs applications can store all correspondence, audio and video recordings of interviews, and many other data. In the future, the specialist can reconsider them and decide on the candidate.

The blockchain system is designed in such a way that storing information in it requires almost 40% less electricity compared to classical technologies. This allows the company to save a lot and create more comfortable working conditions for the manager.

Disadvantages of the blockchain technology

If blockchain technology has so many benefits, then why aren't all companies using it for future hiring? This is large because people are often afraid of something new and incomprehensible to them.

Blockchain technology is relatively recent, and many experts believe that it has a principle of operation that is too complex to understand. In addition, there are not many specialists who know and want to work with such a system.

Another disadvantage is that it takes a lot of time and effort to build such a complex database, it will be more complete and efficient if all companies in the city use it at the same time. It is quite difficult to achieve such results.

For the system to work correctly, it is necessary to purchase special equipment that will collect reports on the work done and enter them into the database, create comfort accounts for every worker.  As a rule, it is quite expensive, so many companies’ authorities are in no hurry to make such investments.

For outside the blockchain job has to completely rebuild the work of the entire HR department. The owner of the company must understand that during the restructuring period, the department will not be able to work as usual and do its job well.


Blockchain is a unique technology that has several advantages: it allows you to optimize the work of an HR specialist, improves the recruiting system, and also helps to reduce energy consumption. The disadvantage is that the introduction of technology requires a lot of knowledge, effort, and money.

Many people discuss how useful and effective this technology will be for the next few years. History will show whether it is worth recruit staff using all the possibilities of the blockchain. But, those companies that have already decided to take this step have already recouped all the costs and created the best conditions for the work of an hr-manager or a whole department.