{"id":16168,"date":"2017-11-21T01:32:32","date_gmt":"2017-11-20T14:32:32","guid":{"rendered":"https:\/\/www.bullhorn.com\/au\/?p=16168"},"modified":"2019-03-02T08:49:16","modified_gmt":"2019-03-01T21:49:16","slug":"blockchain-shake-recruitment-know","status":"publish","type":"post","link":"https:\/\/www.bullhorn.com\/au\/blog\/blockchain-shake-recruitment-know\/","title":{"rendered":"Could Blockchain Shake Up Recruitment As We Know It?"},"content":{"rendered":"

There\u2019s no denying that the rate of technological innovation is changing the recruitment sector. While much of the discussion centres around how artificial intelligence and <\/span>automation<\/span><\/a> is set to disrupt the recruitment landscape, one area that\u2019s still in its infancy is blockchain. \u00a0<\/span><\/p>\n

Blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but any asset of value, including personal data\u2014a resume for example. What this effectively means is that third parties that would normally facilitate a transaction can be removed. <\/span>As a result, the use of blockchain for secure transactions, identity management, and storing digital records is gaining pace.<\/span><\/p>\n

So how could blockchain revolutionise the way recruitment is carried out? And does it pose a threat to the traditional recruitment model?<\/span><\/p>\n

The Application Process<\/b><\/h3>\n

While many people associate blockchain with the transfer of currency (via bitcoin, for example), the reality is that blockchain allows the transfer of any asset. And this includes information relating to individuals such as the details on a resume concerning work history and educational qualifications. <\/span><\/p>\n

In an age where trust is elusive, blockchain clearly has huge potential within the recruitment sector. After all, the details an individual includes in their job application are arguably taken at face value (certainly at the application stage). And it would be remiss to suggest that everyone is absolutely truthful with the information they disclose. Take Yahoo\u2019s now ex CEO,<\/span> Scott<\/span> Thomson<\/span><\/a>, who claimed to have degrees in both computer science and accounting, which\u2014when turned out to be fabricated\u2014resulted in his swift exit. <\/span><\/p>\n

The ability to use blockchain to validate an applicant\u2019s credentials much earlier in the hiring process could not only reduce time-to-hire but also result in cost savings in terms of the processes and resources usually needed to undertake that validation.<\/span><\/p>\n

Could Blockchain be a Threat to Recruiters?<\/b><\/h3>\n

While blockchain clearly has the potential to change the way recruiters process applications, could it also pose a threat to recruitment companies?<\/span><\/p>\n

One new entrant to the recruitment sector is Sydney-based<\/span> Chronobank<\/span><\/a>, which <\/span>uses a new generation of time-based currencies to pay workers utilising blockchain technology. The company plans on partnering with companies directly to facilitate the supply of workers through a decentralised labour exchange platform called LaborX. By using the platform, employers and talent will be able to connect directly and workers will be compensated in-line with their experience and skills, rather than industry-dictated payment rates.<\/span><\/p>\n

While employers have been using the direct hire model for years and the concept of engaging talent online is gaining pace with the emergence of a plethora of players such as Airtasker, Sidekicker, and Weploy, the difference that a player like Chronobank will make is the use of Labour Hour tokens that will trade freely on the open market and be the currency that companies use to purchase labour. The tokens are based on average hourly wages in the host country which, according to supporters, means a fairer payment system for workers, particularly those operating in countries with rapidly fluctuating currencies.<\/span><\/p>\n

The Future<\/b><\/h3>\n

So could Chronobank pose a significant threat to agencies? There\u2019s always the possibility of it impacting high-volume transactional recruitment companies operating in the gig economy, but as yet it\u2019s difficult to see how it could be a threat to niche specialist recruiters. And while new and disruptive models will continue to be a feature of an evolving recruitment sector, blockchain is still a largely unproven concept on anything but a very small scale. <\/span><\/p>\n

\n

For more insight on the trends, priorities, and challenges Australian recruitment companies say they\u2019re facing this year. Check out the <\/span>2017 Australian Recruitment Trends Report<\/span><\/a>.<\/span><\/p>\n\"\"<\/a>\n","protected":false},"excerpt":{"rendered":"

There\u2019s no denying that the rate of technological innovation is changing the recruitment sector. One area that\u2019s still in its infancy is blockchain.<\/p>\n","protected":false},"author":185,"featured_media":16193,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[556],"tags":[],"class_list":["post-16168","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tips-tricks-and-how-tos"],"acf":[],"yoast_head":"\nCould Blockchain Shake Up Recruitment As We Know It? - Bullhorn AU<\/title>\n<meta name=\"description\" content=\"Recruitment insights for Asia-Pacific: AI hiring trends, ATS tips, and growth strategies to help Australian recruitment agencies win more business. 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