Companies spend billions of dollars every year to find and train new employees. Additionally, they have to maintain a significant army of Human Resource professionals and other professionals in related fields to ensure that the recruitment process goes smoothly. Blockchains can help improve this model by getting rid of the middlemen in the recruiting process by connecting companies directly to recruiters. So far, Blockchain’s main applications have come in the financial sector along with legal services, but now it looks like Blockchains have much broader reaching applications than previously thought. Let’s take a look at how the HR and Recruitment industry can benefit from cryptocurrencies.
Problems Affecting the Current Recruitment Process
From identifying suitable candidates to interviewing them and verifying their credentials, hiring new candidates is a long and drawn out process that is dreaded both by employers and potential employees. Employers often have to employ other consultants to do the due diligence, and this is usually a lengthy process that costs a lot of money and time. Blockchains can be very useful here as academic qualifications can be appended to the blockchain to ensure their authenticity. The current process for verifying academic credentials requires candidates to send their transcripts to their employers via their colleges. This transaction typically costs around $15 and can take up to 3 weeks. If colleges and employers were to move to a blockchain based shared ledger, millions of dollars and countless hours could be saved every year. Another problem for companies and employees is the volatility in the international forex trading market. Employees who are trying to send money to their families in different countries have to rely on money transfer services to do the transfer for them. Again, this is a slow and expensive process that blockchains can significantly improve upon.
How Blockchains Can Help?
One of the most useful features of Blockchain Technology is that it allows for cross-border payments in real time. Companies are already switching over to paying their employees in cryptocurrencies to protect against volatilities in exchange rates. If this were further employed by employees trying to send money to their families in their home countries, they would save time and prevent volatilities in the exchange rate.
While cryptocurrencies are undoubtedly useful for cross-border payments, their real benefit to recruitment comes in the form of the security that they provide. Essentially, blockchains are just decentralized databases that are resistant to any tampering. That means that records stored on the Blockchain are permanent and authentic. A growing number of universities are choosing to share their academic credentials on the blockchain making the whole process more secure. Ever since companies have shifted to a digital form of application, fraudulent applications have also increased significantly. Moving to a blockchain based system could help make the process more secure and reliable.
The ChronoBank Ecosystem:
ChronoBank is a new and wide-ranging blockchain project, aimed at disrupting the HR and recruitment industries in a similar way to how Uber disrupted the taxi business. ChronoBank’s vision is to offer an alternative to the traditional banking system using a new generation of time-based currencies utilizing the latest developments in blockchain technology. Their most exciting aspect is the Labour Hour tokens that are linked to average hourly wages in the host country and are backed by a real labor force from big recruitment and labor-hire companies. The heart of ChronoBank’s ecosystem is LaborX, a decentralized labor-hire marketplace. Built using Ethereum’s smart contracts, LaborX uses a dedicated sidechain for scalability and throughput. LaborX makes the entire process of validating credentials automated thereby saving corporations around the world millions of dollars.
ChronoBank decided to choose Labor as the core of their ecosystem as labor is abundant enough for everyone to have access to it, yet scarce enough to be valuable. That makes labor an excellent metric to be the backbone of the new financial paradigm. Labor Hour tokens will tokenize this resource, and since real labor backs them, they are entirely inflation proof providing almost zero volatility making them one of the most valuable stable coins. Another fascinating part of the ChronoBank Ecosystem is TimeX, which is a decentralized exchange based on the 0x protocol. It will be built on the same Ethereum sidechain as the LaborX marketplace and will offer trustless peer-to-peer trading of ERC20 tokens and other popular cryptocurrencies. Therefore by employing all of these tools on a single platform, ChronoBank can provide a new financial paradigm that can make the life of HR professionals much more manageable.