BOAML building cross-country employee bonds
Smartcontracts which are the selfexecuting tasks supervised by the network of the computers that run the blockchain as well as verification of credentials like digital diplomas are the many ways in which blockchain technology can be used by employers
Frequently associated with the term bitcoin, blockchain is a disruptive technology which is now making a grand entry in all major market domains. Blockchain technology collects and stores the information in certain blocks, and time stamps it on a distributed and encrypted ledger. Immensely popular as the cornerstone of virtual currency, blockchain technology and algorithm is now being used in almost every sector where storing, verifying, and tracking data and transactions. One such vertical towards which blockchain is lifting its branches is global staffing industry.
Global staffing industry, which provides manifold workforce solutions to business organizations, has generated the revenue of nearly $461 billion in the year 2017. Seeing such a tremendous growth of staffing industry and the advents of cutting-edge technologies like blockchain, analysts project a further 2.5% growth by the end of 2018.
BLOCKCHAIN IN STAFFING INDUSTRY
Blockchain is emerging as one of the reliable HR solutions in the industry. In the current scenario, despite having access to so many tactics and technologies, hiring firms are unable to tap on the talent fit for different job roles. The time-consuming recruitment process which involves sourcing, vetting, selecting, and on-boarding, is labour-intensive. Also, the current landscape of staffing industry is changing rapidly; gig economy is rising. For both shortterm and permanent contracts, employers are willing to hire both part-time and full-time workers.
The global recruiting market is becoming more agile and dynamic incorporating blockchain in its mainstream strategic processes. From biometric ID verification of the candidate’s identity to blockchain-based standardized CV, blockchain is cutting short the manual labour of recruiters involved in the cumbersome recruitment process. With both job-seekers and recruiters using blockchain technology, the communication between them is enhanced and the data shared by them is safe and secure. Recruiters can identify the potential candidates and reach them. Encrypted information put up on blockchain cannot be altered and deleted ensuring high security and privacy.
BLOCKCHAIN SOLUTIONS FOR STAFFING CHALLENGES
Recruiters search for the suitable talent on social networking or job-seeking sites where they have lesser control over what all their data is accessed by the site as well as the recruiter. He cannot limit either his profile visibility or the data required as an obligation. Perhaps, he does not want the recruiter to see his race or gender. But, the website may make it a mandate to share such details with it. This may also lead to data breaches and scams as the owner of the site create a centralized database and can access or sell complete data.
A platform built on blockchain technology will give the power to the hands of candidates as it is completely decentralized and thus, secure. A candidate can transfer his data to the platform through a cryptographic key and the owner of the platform has a little or no role to play over here. He can even decide which detail should be visible and who can access it. This is a direct interaction or transfer of encrypted data from candidate to the employer.
VERIFICATION OF CREDENTIALS
Every six out of ten recruiters found that half of the candidates give false details on their resumes during the applications. This causes a great loss of both time and resources to the recruiters as they must restart the entire recruitment process. Vetting of the candidate is an important stage in the recruitment process but takes a lot of time. Verifying the qualification documents, previous employee record or any other information given in resume by calling or emailing is not easier for the recruiters. Blockchain, in such a case, can help in credentialing and verification of the candi- dates and reduce the fraud.
Institutes like Massachusetts Institute of Technology, can issue a digital diploma or degree through a blockchain-enabled program, which cannot be changed once uploaded, but only verified any time in the future. And why only institutes, the employers can also create such blockchain programs and keep information of employees, which can be cross-checked by the future recruiters. The recruiters can easily verify these pre-validated digital certificates, qualification, and employment history stored in blockchains and save a good time.
SMART CONTRACTS
Smart-contracts or blockchain contracts are the self-executing tasks supervised by the network of the computers that run the blockchain. In case of Gig economy, these smart-contracts can cut short the intermediaries such as lawyers or project managers and resolve the conflicts between employer and employees. The contracts or the work needs only to be coded and replicated on blockchain along with the clear instructions and conditions to be met are provided. The worker and the recruiter agree on a certain virtual contract on blockchain, the former pays the worker in cryptocurrency, and the latter delivers him the work or the certain conditions are met.
But, the payment will not be released and given to the worker unless the recruiter confirms the delivery of work. Whensoever, work delivery is confirmed, the payment will automatically be released or vice-versa. This removes the conflicts between the employer and the worker for delayed payment or delayed work delivery as the work is delivered and the payment is done all together. If the work is not delivered to the employer, blockchain automatically refunds the payment, and if payment is not done by the employer, the work is automatically canceled or delivered back to the worker. Smart contracts automate the tasks; get them done cheaper and fairer. The best part is the contract cannot be altered any time in the later.
Staffing industry can be regulated seamlessly using the blockchain technology. As per a survey conducted by Deloitte, 28% of global companies have already adopted this technology by investing $5 million, 10% of companies by investing $10 million until now. Moreover, 25% of those companies surveyed plan to spend more than $5 million in Blockchain by the next year. Nikhil Joshi, director, sales, fixed income, currencies and commodities (Ficc), at Bank of America Merrill Lynch (BOAML), won a table tennis competition during the multinational’s fitness championship, Getactive, last year. Mumbai-based Joshi, who has been with the company for six years, says he found the tournament a great way to get healthier “as most of us are chained to our desks throughout the day”.
BOAML, the second largest bank by asset size in the US, operates in as many as 41 countries. And, while it champions financial health, its management believes this is not possible without the sound physical health of its employees. That’s the idea behind Getactive, the fitness programme that has been held at their offices globally in June-july every year since 2014.
Getactive is essentially a stepcounting challenge that aims to inculcate a more active lifestyle. To help build team spirit, the bank invites employees to form teams and compete internally for the top spots—and become fitter. Employees register on a common web-based platform and record daily steps/calories burnt.
Participants and/or teams can use different ways to increase the number of steps they take—running, jogging, trekking, gymming, or playing a sport. They get points at every milestone count, which can be redeemed for gifts from the bank’s online store.
“In this global campaign, colleagues across countries and continents connect and compete against each other through Getactive. Employees form teams and record the number of steps they have walked through activities like playing sports, working out, jogging, or walking,” says Somna Singh, country human resources head. This year, the event ran for six weeks, ending on 29 July.
Over 18,000 employees in India—from across its six offices in Mumbai, Delhi, Gurugram, Bengaluru, Hyderabad and Chennai—enrolled for the challenge; more than 40,000 employees registered globally. The team sports include baseball in the US, cycling in Europe, and table tennis—chosen by the employees— in India.
Teams can see what others are doing thanks to the automated league tables that offer day-today and weekly comparisons. The table tennis tournament started three years ago.
Over 50 employees have participated in this contest in the last two years. Sanchay Agrawal, head of corporate sales—india, global transaction services, says Getactive helps build camaraderie across businesses and control functions. “The campaign—and the table tennis competition— have helped me meet new colleagues, understand their roles, and profile and explore the possibilities of doing things differently,” says Mumbai-based Agrawal.
Throughout the year, employees play table tennis before/after starting work or during breaks. However, things heat up at the TT tables a couple of months before the tournament, with people booking time slots for practice. Since the number of tables is fewer than the people who want to practise, there’s always a rush for the prime slots.