Find a Perfect Fit for Your Position with Blockchain 

Fake it till you make it. That seems to be the mantra for anyone lingering in the job market these days, and the numbers show it. A study conducted by HireRight’s in 2017, shows that 85% of job applicants lie on their resumes. That means more than eight out of ten people reading this have lied on their resume at some point in time, fortunately, job data storage still relies on such outdated systems that this can still happen. Although not the worst thing to do in the world, it can be problematic when say, someone who has worked at a convenience store all their life somehow lies and gets a job as a doctor, pilot, or any job in which human life is at stake. Although technology has made this extremely difficult to do in this day and time, it is not an impossible task. Take a look at this list for instance, which shows that even the highest ranking in the business world are prone to lying.

When it comes to work history there is no proper way of storing or maintaining this data, this has led to a candidate pool that is made up of more lies than actual experience. According to Forbes, 46% of newly-hired employees fail within 18 months of being hired. So, about half of all newly-hired employees fail within the first two years. This doesn’t necessarily mean these people are fired, perhaps they are transferred to a different department that better suits their skillsets.According to Glassdoor, the average company in the US spends about $4,000 to hire a new employee. Luckily, blockchain technology is now finding ways to provide a more trustworthy candidate pool. What is Blockchain? Blockchain is the building blocks of cryptocurrency. It is the security system that allows for the passage of millions of dollars worth of bitcoin, ethereum, and altcoins on a day to day basis. More recently, however, the technology has begun to find uses in different industries. It is being used in the pharmaceutical industry to limit the development of counterfeit drugs.

It is being used in the shipping industry to expedite shipping times by reorganizing outdated supply chain management models. And it is being used in the banking industry to revolutionize the way we bank. The success of blockchain comes from its ability to act as a distributed digital ledger, one that can only be changed with the chains majority consensus. When information is uploaded, each node or member of the blockchain would have access to it. If any alterations were to be made, they would have a view at what is being changed as well and would be able to weigh in on whether or not the change is correct. So how can we use this new technology to fix our hiring systems? The Current Problem? An Outdated System Currently hiring processes have fallen upon recruiters and job sites, such as Indeed, ZipRecruiter, Monster, etc. These resources have done a fine job at pairing candidates with employers, however, they have no ability to fight resume fraud. Companies spend millions of dollars a year on these resources, and given that almost half of all candidates do not make it past the first two years, are they really helping? Some form of a rating system or a more transparent system needs to be put in place. Arran Stewart of Job.com has begun toying with blockchain in order to implement it into his company’s current systems.

In an interview with CIPHER, a developer of Human Resources (HR) software, Stewart gave his views on how blockchain can revolutionize the hiring process. At the moment, Job.com is working on methods to expedite the hiring process, through automation provided by smart contracts. Smart contracts are a product of Ethereum and can basically automate transactions. Job.com is currently using blockchain to automate contractual processes. This has allowed the company to provide cheaper services. “Instead of the employer paying us a 20% fee, we only charge a 6% fee.” It also allows for hiring to be completed in a quicker manner. At the moment the average hiring time is around 40 days, with blockchain that time can be severely reduced. Blockchain is already providing cheaper resources in the job search world. The next area that needs addressing, however, is experience verification. For that, BHIRED is another company working with blockchain to provide a smoother hiring experience.

What BEHIRED is Doing For Employers BHIRED’s goal is to provide a more transparent recruiting platform. They plan to move hiring processes away from their centralized platforms, and put them on a blockchain. A blockchain can effectively eliminate externalities and middlemen, reduce time and costs, and greatly improve the hiring process as a whole. BHIRED targets three essential areas in hiring new candidates, transparency, accountability, and trust. It is a rewards-based system which pays potential candidates for there information with tokens. Candidates build their own profiles with all of their data, then receive tokens when that data is viewed. Employers can search through the blockchain and view potential candidates directly without the need of a recruiter. Throughout the blockchain there is an immutable rating system in which candidates rate employers and vice versa. The system also uses Artificial Intelligence (AI) to pair candidates with jobs that suit their skill sets. Think of it as a mesh of Glassdoor, Monster, and Indeed, but on the blockchain. So Why Aren’t we Utilizing Blockchain Yet? In order for blockchain to be useful, it requires the cooperation of the industry as a whole.

Each member of an industry needs to constantly update the blockchain in order for it to be valid. Of course, smart contracts could be used to automate these systems, many are unaware of what blockchain is, let alone a smart contract. Blockchain is still extremely new, and many are hesitant to adopt it. Also, think about how long we have relied on recruiters and job sites? This new method of hiring provided by blockchain, would rid the market of these resources altogether. Recruiters would be a thing of the past. Job sites, however, would greatly benefit from blockchain technology and we can most likely assume that many of them, such as job.com, will continue to adopt the technology and shape their systems around it. Bring on the Blockchain Blockchain is changing the way we live. Paired with the Internet of Things and AI, blockchain has been developed to provide a more trustworthy and transparent business environment for those who adopt its use. Businesses can benefit from blockchain in multiple ways, one it can provide a more efficient supply chain, two, it can improve logistics, and now three, it can change the hiring process. The current systems in place for hiring are outdated, that much is obvious. It relies purely on trust and showmanship. Due to this, many who are unqualified have gone on to lose companies millions of dollars, and even more due to the hiring process. With blockchain, businesses will eventually be able to see the entire work history of their employees or desired candidates. They will be able to streamline the hiring process through automating contractural procedures with smart contracts, ultimately saving a fortune in both time and money.

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