Exploratory Research on the Use of Blockchain Technology in Recruitment
Abstract
:1. Introduction
2. Literature Review
3. Materials and Methods
3.1. Data Collection
- What are the opportunities offered to recruitment processes via blockchain technology?
- What are the challenges of blockchain technology adoption in recruitment processes?
- What are the possible solutions to overcome these challenges?
- What are your thoughts on the future of the blockchain-based recruitment process?
- How will blockchain technology affect the role of recruiter in the future?
3.2. Data Analysis
4. Results and Discussion
4.1. Theme 1—Opportunities of Blockchain Technology for Recruitment
4.1.1. Building a Careers Network in a Digital, Secure, and Decentralized Manner
“Blockchain enables tamper proof recording of non-perishable personal credentials (e.g., employment history, education history etc.). Perishable credentials (e.g., identity documents, criminal record status etc.) can also be placed on blockchain, but would have to be updated on lapse of the credential end date.” PT14
“These documents would be cryptographically signed by the issuer and cannot be forged or tampered with.” PT7
“It is difficult to change or hack the information in the blockchain.” PT10
4.1.2. Providing Effective, Faster, and Cheaper Verification of Candidates’ Credentials
“The primary opportunity offered by blockchain technology is a recruiting process where skill data are validated and portable.” PT1
“Recruiters will be able to instantly verify these credentials with confidence.” PT7
“Verified and immediate information” PT8
“Identity verification for employment” PT14
“In the shorter-term new technology such as digital credentials will allow employers to validate a candidate’s work credentials, from employment history to qualifications.” PT4
“Identity verification can authenticate a candidates’ work history, current role and employer, education and certificates and achievements.” PT17
It enables “the worker to have direct control of verified information related to their identity, employment history, education, certifications & licences, and assessments.” PT12
“…A person could apply for a job and the company can see all of their skills they’ve picked up over the course of their career. This could include not only jobs, but also training they have taken, mentoring relationships relevant to work, etc.” PT1
It enables “cheaper and faster vetting and screening function if candidate credentials are verified on chain” PT14.
“The person’s private data can be shared with an employer to fast-track the onboarding process.” PT9
“It allows resume claims and credentials to be validated earlier in the recruitment process.” PT11
4.1.3. Facilitating Performance Reviews of Employees
“The future of performance management is continuous feedback (with scoring performed at least monthly) not just on delivery of goals, but on skill improvements or declines and a measurement of team, peer and customer relationships.” PT17
“Performance management can be seen as “blocks” of data on an individuals’ on-the-job delivery measured every month, quarter, six-months or per year.” PT17
4.1.4. Conducting Interviews on the Metaverse
“Holding interview on the metaverse.” PT5
“We will be able to do the interviews in the Metaverse, so instead of doing digital interviews on Zoom, Meets or Skype we can meet the candidate in the metaverse and assess even non-verbal communication. The metaverse would allow interviews as if they are onsite.” PT3
4.2. Theme 2—Challenges of Blockchain Technology Adoption in Recruitment and Possible Solutions
4.2.1. Technological Challenges and Possible Solutions
“Agencies often offer incentives for individuals to put personal data on their blockchain leading to mistrust” PT9
“Increasing concern about the processing of personal data has made candidates much warier about using centralized networks.” PT10
“Public ledgers are public by nature meaning that they should not contact Personal Identifiable Information (PII) as this data is also immutable.” PT11
“On public blockchains, privacy is a challenge. By nature anything written on the blockchain stays forever. Hence, if we start writing our CVs on chain, it will be impossible to alter in the future. One involvement in some communities at some point of your life may be undesirable in another context or at a later stage.” PT16
“By using a hybrid model of blockchain technology for access control and private data bases to store encrypted PII, users gain the advantage of permission control and privacy. Hyper Ledger Fabric by IBM is a good option with proprietary smart contracts.” PT11
“Verifiable credentials are a promising standard to allow anyone to earn credentials and equip them with a way to prove them. They keep full control of these credentials and may or may not choose to unveil them. There are emerging solutions (such as Polygon ID) around decentralized identity management to keep record of these credentials while keeping control on what to disclose to whom.” PT16
“The biggest problem I have identified in the last few years of watching this space? Ownership/payment.” PT1
“Traditional public blockchain technology is expensive and slow. It cannot transact at a commercially viable speed and demands too much energy (cost) to run and store large payloads.” PT11
“Many of the current technology solutions adopted by organizations don’t have blockchain capabilities. The cost of changing the technology to adopt blockchain native tech is too high.” PT14
“Storing only hashes on the blockchain denoting transactions or pointing to the encrypted data base for data access” PT11
“Avoidance of blockchains that use Proof-of-Work consensus to perform transactions and incur expensive ‘gas’ fees.” PT9
4.2.2. Organizational Challenges and Possible Solutions
“I imagine it is difficult to integrate new software into the workplace when employees are used to employing certain tools.”
“User interfaces and match making tools need rebuilding in the decentralized paradigm to offer same efficiency as current, centralized tools.” PT16
“Dominant design being adopted by leading companies” can be adopted. PT8
“Educating the masses about the blockchain and its benefit” is required. PT5
“The solution could be in education and maturity not only in the industry but also for those who the industry serves.” PT6
“Training for employees on new tools may be needed.” PT13
“I think the best solution is to give new courses and trainings about Blockchain for free. Then, we have to be patient about it and give people time to learn and understand.” PT18
One of the important issues is “reluctance of senior executive to go on the blockchain or even explore it.” PT5
“This move to reinvent performance management is happening slowly and is being hampered by the reluctance of HR managers to embrace data-driven decision-making.” PT17
“There needs to be a business case that justifies the medium to long term benefits associated with the technology.” PT14
4.2.3. Environmental Challenges and Possible Solutions
“In my experience—the industry is still trying to figure out how to adapt to web1.0 a small section is figuring out web2.0—none are even close to understand impact of web3.0.” PT6
“I think it is a matter of time. 20 years ago, hardly anyone knew what an email or even internet is, and right now even my mother has an Instagram account. Adoption is coming step by step.” PT3
“It’s just a matter of time for the normal evolution to take shape, much like the development of e-mail and browser protocols for the Internet, which was just as clunky and non-user friendly at the outset.” PT7
“The Velocity Network Foundation is taking the approach of having the HR Technology community come together to do this. That would seem to be more palatable for employers.” PT1
“Collaboration…across both specific industry sectors (WEC has done this across the private employment industry sector) and across the ecosystem as a whole (Velocity Network Foundation being a great example here).” PT12
4.3. Theme 3—Prospects for Blockchain Usage in Recruitment
4.3.1. Overview of Prospects
“Too much emphasis has been placed on the tech, rather than the outcomes the tech provides. I fear that until the outcomes are discussed, it will be a topic of discussion rather than a tool for change.” PT14
“It will get better and easier and it is here to stay, with the adoption of Web3 a lot will be happening. The future is bright.” PT5
“Strong thoughts. I feel it is inevitable.” PT15
“As blockchain the technology will be used more and more in just about every industry.” PT13
“Digital wallets will enable the first wave. Mainstream adoption remains 3–5 years out.” PT12
“This will enable more effective work-matching, better use of platforms in certain industry verticals and geographies.” PT4
“In the longer-term, blockchain technology will enable new types of organizations to form such as DAOs, which will give individuals with complementary skills new ways to operate. This changes the way that work is sourced, and therefore what is needed from recruitment services. This has the potential to change the employee-employer contract and how work is designed and managed.” PT4
“Solve the current state problems before we even begin to think about solutioning around blockchain—the saying goes it could be a ‘square peg in a round hole’.” PT6
“I can see a lot of barriers to overcome until adoption is widespread (and adoption needs to be widespread for full benefit).” PT8
“I have been researching and piloting prototypes for commercial application for 4 years and have seen several companies come and go. I gave up on the technology because the market was not ready. Those who survive will run the future of recruitment as credentials will all be decentralized and job applicants will own and control their issuer granted verified credentials in a digital repository that can be shared in real-time…” PT11
“Unless there is a shining use case by a very recognizable brand, then the state of blockchain HR tech will remain at ‘pilot’ only stage for near future.” PT17
“Blockchains used exclusively for the recruitment process will have a limited future. Blockchains are the wrong Distributed Ledger Technology (DLT). The recruitment function is a plug-in component of corporate DLT systems. Along with other components, they will become standardized for interoperability. Many early go-to-market applications have made mistakes that will be hard to reverse or modify in order to be integrated with corporate DLT systems at the point of onboarding.” PT9
4.3.2. Role of Recruiter in the Future
“…I do believe that the human touch will remain, the role will become more AI-IT but humans will still be in control. I hope so.” PT5
“This has always been a myth. Recruiters will never be replaced as long as human emotion and discernment is required in human beings.” PT15
“There has been speculation that blockchain or other data-driven recruitment technology will ‘kill’ recruitment agencies. This hasn’t happened so far, and is very unlikely to happen in the future.” PT17
“…much of the current activities of the recruiter will be automated by technology and the changing nature of the organization.” PT4
“It will make their job easier and more efficient.” PT7
“They will be able to place candidate faster into roles. There will be less vetting and compliance activities. There will be less contract management.” PT14
“Blockchain will empower recruiters and speed their screening process. The time spent having to validate claims and credentials will be reduced on more situational & behavioral questions can be asked providing deeper insight for a better job match in less time.” PT11
“This will allow the recruiter role to move from one that spends significant time on matching capabilities, to one that is focused on their role as a career coach and better understanding where the cultural and personal fit exists in addition to the skills based match.” PT12
“It will make their job easier, but not obsolete. Evidence of human skills is difficult to capture, and companies will still want to ensure a suitable cultural fit for new employees. In such cases, recruiters will need to be better skilled at analyzing and decoding human skills.” PT8
“If we’re spending less time filtering through and trying to validate someone’s technical skills and more time understanding how they solve problems, how they innovate, or how they collaborate with others, that could ultimately lead to a better and more valuable hiring experience for all involved.”
“Blockchain (and decentralization that it offers) will encourage globalization of the knowledge workers job market. The remote work trend is indeed not going away and recruiters will have to offer contracts across the borders. With a more fluid job market, recruiters may have to offer more short-lived and attractive (lucrative, instructive, meaningful) jobs as employee retention rate will inevitably decrease.” PT16
5. Conclusions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
Abbreviations
AI | Artificial Intelligence |
CV | Curriculum Vitae (resume) |
DAO | Decentralized Autonomous Organization |
DLT | Distributed Ledger Technology |
HR | Human Resource |
HRM | Human Resource Management |
IT | Information Technology |
NFT | Non-Fungible Token |
PII | Personal Identifiable Information |
PT | Participant |
ROI | Return on Investment |
Tech | Technology |
WEC | World Employment Confederation |
Appendix A. Interview Form
- What is your name?
- What is the name of the company you work for?
- In which country is your company located?
- What is your position at work?
- How many years of work experience do you have?
- What are the opportunities offered to recruitment processes via blockchain technology?
- What are the challenges of blockchain technology adoption in recruitment processes?
- What are possible solutions to overcome these challenges?
- What are your thoughts on the future of the blockchain-based recruitment process?
- How will blockchain technology affect the role of recruiter in the future?
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Participant | Position | Work Experience | Location of the Company |
---|---|---|---|
PT1 | Chief Research Officer | 13 years | United Kingdom |
PT2 | Talent Acquisition | 13 years | Australia |
PT3 | Human Resources Manager | 5 years | Spain |
PT4 | Director | 27 years | United Kingdom |
PT5 | Managing Director | 15 years | Hong Kong |
PT6 | Chief Executive Officer | 15+ years | United Kingdom |
PT7 | Founder/Educator | 34 years | United States |
PT8 | Founder/Chief Executive Officer/Educator | 25 years | Australia |
PT9 | Founder/Managing Director | 50+ years | Australia |
PT10 | Executive Chairman | 21 years | United Arab Emirates |
PT11 | Chief Executive Officer | 25 years | Canada |
PT12 | Vice President | 30+ years | Belgium |
PT13 | Recruitment Consultant | 2.5+ years | United Kingdom |
PT14 | Founder/Managing Director | 25+ years | United Kingdom |
PT15 | Chief Visionary Officer | 35 years | United States |
PT16 | Chief Technology Officer | 20+ years | France |
PT17 | Chief Executive Officer/Educator | 29 years | Singapore |
PT18 | Recruiter | 13 years | Uruguay |
Themes | Sub-Themes | Codes |
---|---|---|
T1. Opportunities | T1.1. Building a careers network in a digital, secure, and decentralized manner |
|
T1.2. Providing effective, faster, and cheaper verification of candidates’ credentials |
| |
T1.3. Facilitating performance reviews of employees |
| |
T1.4. Conducting interviews on the metaverse |
|
Themes | Sub-Themes | Codes | Possible Solutions |
---|---|---|---|
T2. Challenges | T2.1. Technological Challenges | - Security and privacy concerns |
|
- Issues of scalability and cost-effectiveness |
| ||
T2.2. Organizational Challenges | - Challenge of integrating blockchain into existing business models |
| |
- Lack of knowledge, skills, and abilities |
| ||
- Reluctance of senior executives to adopt technology |
| ||
T2.3. Environmental Challenges | - Lack of awareness and understanding |
| |
- Lack of cooperation |
|
Themes | Sub-Themes | Codes |
---|---|---|
T3. Prospects | T3.1. Overview of Prospects | - Implementation of blockchain-based solutions may be a gradual process. |
- There may be a lot of barriers and challenges to overcome for widespread adoption. | ||
- Except for well-known brands in the world, there may be a limited future for blockchain used exclusively in recruitment. | ||
T3.2. Role of Recruiter in the Future | - Human touch may continue to remain important in recruitment. | |
- Routine tasks may be automated and screening process of recruiters may become faster. | ||
- Recruiters may need to learn more about how the blockchain works. | ||
- Recruiters may need to be better skilled at analyzing human skills. | ||
- The recruiter may have more time to focus on the cultural and personal fit of the candidates. | ||
- Recruiters may offer more contracts across the borders and more short-lived and attractive jobs. |
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Kişi, N. Exploratory Research on the Use of Blockchain Technology in Recruitment. Sustainability 2022, 14, 10098. https://doi.org/10.3390/su141610098
Kişi N. Exploratory Research on the Use of Blockchain Technology in Recruitment. Sustainability. 2022; 14(16):10098. https://doi.org/10.3390/su141610098
Chicago/Turabian StyleKişi, Nermin. 2022. "Exploratory Research on the Use of Blockchain Technology in Recruitment" Sustainability 14, no. 16: 10098. https://doi.org/10.3390/su141610098
APA StyleKişi, N. (2022). Exploratory Research on the Use of Blockchain Technology in Recruitment. Sustainability, 14(16), 10098. https://doi.org/10.3390/su141610098