Fake it till you make it. This seems to be the mantra for anyone lingering in the job market these days, and the numbers show it. A recent study shows that 84% of job applicants lie on their resumes. That means more than eight out of ten people reading this have lied on their resume at some point in time.
Take a look at this list for instance, which shows that even the highest ranks in the business world are prone to lying. When it comes to the work history, there is no proper way of storing or maintaining this data, and this has led to a candidate pool that is made up of more lies than the actual experience. Almost half of newly-hired employees fail within 18 months of being hired. Plus, about half of all newly-hired employees fail within the first two years.
Such failures result in losses: the average company in the U.S. spends about $4,000 to hire a new employee. Luckily, blockchain-based recruiting solutions can now provide a more trustworthy candidate pool.
The success of blockchain comes from its ability to act as a distributed digital ledger, one that can only be changed with the chain’s majority consensus. When information is uploaded, each node and each member of the blockchain has access to it. If any alterations are made, the members can see what is being changed and can weigh in on whether or not the change is correct.
The Current Problem? An Outdated System
Currently, hiring processes have fallen upon recruiting companies and job sites. These resources have done a fine job at pairing candidates with employers. However, they have no ability to fight resume fraud. Companies spend millions of dollars a year on these resources, and given that 46% of all candidates do not make it past the first two years, are they really helping?
Current Blockchain Projects: BHIRED
BHIRED’s goal is to provide a more transparent recruiting platform. They plan to move hiring processes away from centralized systems and put them on a blockchain to eliminate externalities and intermediaries, reduce time and costs, and improve the whole hiring process.
BHIRED targets three essential areas in hiring new candidates: transparency, accountability, and trust. It is a rewards-based system which pays potential candidates for their information with tokens. Candidates build their own profiles with all of their data, then receive tokens when that data is viewed. Employers can search through the blockchain and view potential candidates directly without the need of a recruiter.
So Why Aren’t We Fully Utilizing Blockchain Yet?
In order for blockchain to be useful, it requires the cooperation of the industry as a whole. Each industry member needs to constantly update the blockchain in order for it to be valid. Smart contracts could be used to automate these systems, however, currently many are still unaware of what blockchain is, let alone a smart contract.
We have been relying on recruiters and job sites for too long. The new method of hiring that involves custom blockchain solutions would rid the market of these resources altogether. Recruiters would be a thing of the past. Job sites, however, would greatly benefit from blockchain technology, and we can most likely assume that many of them will continue to adopt the technology and shape their systems around it.
Bring on Blockchain
The current systems in place for hiring are outdated, which is obvious. They rely purely on trust and showmanship. Because of this, many unqualified people have gone on to cost their companies millions of dollars, and even more due to the hiring failures.
With blockchain in recruiting, businesses will eventually be able to see the entire work history of their candidates and employees. They will also be able to streamline the hiring process through automating contractual procedures with smart contracts, ultimately saving both time and money.
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