If you are not very familiar with the functioning of the blockchain technology then you’re in for a treat. The functioning of blockchain technology involves using a distributed ledger to record transactions of value removing the middlemen in the process and establishing accountability and authenticity in the recording of data.
In the nascent stage of the technology, the major implications were recognized in the field of finance and related sectors. Forming the backbone of the cryptocurrencies, the blockchain technology has unraveled a plethora of opportunities for a new economic structure.
Capitalism has evolved to shape a new form of capitalist-proletariat relationship, the new era has a lot in stores for those who don’t want anyone else bossing around. The Gig Economy has been a boon for those who choose to be their own boss. It’s different from a contract and far away from the permanent role of an employee.
The gig is a slang used in the English language for short term work usually a contract with a company, where independent workers offer their services for the said duration or for the completion of the project.
The Gig Economy has been flourishing in the times of the digital buzz, in the digital age location is no longer a factor taken into consideration for employment, making a large population of workers available for independent contracts to earn their livelihood.
The Gig economy puts the free forces of capitalism into an effective state, filing up the demand and supply gaps with independent workers. This version of the economy prioritizes a skill-based approach for work rather than the traditional method of educational qualification.
The gig economy also factors for the frequent job change by the millennials creating a better version of employment that suits their needs. The rise of freelance workers has been drastically high creating room for more autonomy and work-life balance.
The digitized version of money in form of cryptocurrencies and the digital workforce puts blockchain and the gig economy in a contextual frame. The gig economy is bringing a cultural and occupational change in the digitalized world! The gig economy is cultivating the entrepreneurship instinct among individuals.
Blockchain in Human Resouce
On a more thought-full note, the implications have also been recognized in the Human Resource sector. Hiring a candidate fit for the role with optimum skillsets is a bigger challenge than it seems, people might think that there are millions of job seekers who are looking for employment but how they fare on the criteria of the company is a different story altogether.
To judge a candidate on the basis of the skills they possess the people in the hiring department need a piece of evidence in the form of degree and certifications verifying the stand of the candidates. Job seekers carry the physical copies of certifications and degrees with them every time they go for an interview.
Blockchain courses aim to address the above-mentioned problem by creating single digital storage of all educational and professional qualification spread across different databases so that the only thing the recruiters need will be that single digital identity. This will also help to address the problem of fake qualifications mentioned on the resume, which candidate often attempt to do in order to gain better employment.
Background screening & payroll are the two scenarios where the use of Blockchain seems very possible and it will also aim to address all the loopholes that the present system has inherited. Blockchain will help to keep a record of the education and skills and workplace performance of employees securely.
Most gigs are typically a short term contract, to hire people for a contract bug companies use intermediaries to do the job on their behalf of finding gig workers, Blockchain steps in to remove the intermediaries from the picture. Gig workers can be employed for projects without complex verifications as most gigs are skill-based instead of prioritizing educational requirements.
The gig workers have their own set of problems when it comes to being paid for their services, they have to wait for a longer period to earn their much-deserved paychecks, blockchain can efficiently solve all these issues and help cultivate the gig economy to larger scale.
With the numerous implications of the revolutionary Blockchain technology based on the concept of distributed ledger, the HR segment has many benefits to avail. From impeccable background verification to holding records of employees to removing the intermediaries required to hire gig workers blockchain brings a whole lot to the table.