The Benefits of Blockchain for Employers and Employees

The Benefits of Blockchain for Employers and Employees

With each passing day, the prospect of blockchain technology becoming a very real presence in our day-to-day lives becomes less farfetched as more governments and organizations begin to warm to its potential. There has been plenty of talk about how blockchain could improve efficiency in the workforce, but widespread implementation is still a long way away. In conjunction with Labour Day, we take a look at a few ways in which blockchain technology can help to improve crucial work processes for both employers and employees alike.

Get the right employee in

Imagine a world where every single fact on a prospective employee’s resume was completely accurate and verified by multiple parties. This is just one possibility of moving the hiring process to the blockchain, which could essentially create a single, globally recognized database of professional talents.

Interviewing poor candidates is less likely with resumes being verified via blockchain technology. Image from monster.com

Not only will this help employers single out candidates that are absolutely suited to the job, it also benefits potential employees as they are likely to be taking on a role that suits them to a tee. In such a world, the removal of subjectivity and doubt from the hiring game is something that both employers and employees would benefit from tremendously.

Automate payroll and tax process

The annual process of filing taxes is arguably one of the most tedious procedures any employee has to go through. You’d be hard pressed to find someone that actively enjoys this season! With the help of blockchain technology, it’s possible to have taxes and returns calculated automatically and accurately. This would tie-in with an automated payroll, which would use smart contracts to pay each employee at the end of the week or month.

Smart contracts will ensure that payroll is an automatic, hassle-free process. Image from green60.com

Governments could also implement a customized blockchain that maintains a ledger of all registered businesses and employees. Not only will this prevent unscrupulous corporations from adjusting their books, this also ensures that there will be no instances of tax dodging at a basic level. For returns to be automatically calculated, this will likely require further blockchain implementation in and cooperation among industries like insurance, health and more, but the potential benefits are there for all to see.

Transparent commission or bonus structure

Sales teams tend to have a commission structure built in to motivate members to strive for loftier heights. Despite this, calculating commissions from closed deals can often prove to be a tough job, both for HR as well as the sales person in question. Through smart contracts, payouts could be accurate and instantaneous, with funds released as soon as agreed criteria are met.

Commissions and bonuses can be paid out automatically without additional processing. Image from fredbeerlaw.com

Similarly, bonuses for other employees could also make use of smart contract technology to ensure that their performance-related bonuses or raises are processed immediately. This saves both time and resources, with employees able to point to criteria that has been met while HR will not need to verify the validity of their achievements.

Is blockchain the answer?

There is little doubt that blockchain is poised to majorly disrupt the way traditional companies and organizations operate. Not only does it improve efficiency, it helps to save resources as well as freeing up manpower for more important tasks that cannot be automated. With the technology in place and clear benefits from incorporating blockchain into the workforce, there is little wonder why many corporations are scrambling to fill this gap in the market.

While it may not be the answer to optimum efficiency in the workplace, leaving the more mundane aspects of the workplace to smart contracts is just the tip of the iceberg as far as blockchain’s potential is concerned. Any success should then be used as a case study for further development and implementation to push for greater adoption, similar to how computers, internet, and email wove their way into the fabric of most workplaces worldwide.

Cover image from futureoftalent.org

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