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Elevate Your Future of Work Processes with Blockchain

Business LeadershipContingent WorkforceDirect SourcingTechnology and InnovationUncategorized by John Yuva on

One of blockchain’s chief benefits is the ability to authenticate and protect information. With today’s decentralized workforces, there is a variety of information possibly at risk, including payroll, insurance, health, and personnel data. Similarly, HR and enterprise recruiters want assurance that potential job candidates and their résumés are authentic and accurate. Blockchain technology has the potential to provide the necessary verification and protection of such sensitive workplace data.

Here are three Future of Work areas where blockchain technology could provide critical verifications and safeguards, particularly for the contingent and gig workforce — from the recruitment to the contracting and payment process.

Recruitment

As direct sourcing becomes more ubiquitous, the need for data verification grows because of the sheer volume of candidate information entering job portals. It can be time intensive for HR and enterprise recruiters to verify qualifications and references. Blockchain can help in the recruitment process.

  • A candidate’s digital identity on a personal blockchain can save tremendous time authenticating a résumé and associated work experience. It serves as a single source of truth for that individual.
  • Colleges and universities are now issuing digital degrees through blockchain that candidates can provide a direct link to on their résumés. This same concept of virtual credentials can apply to training certificates and performance reviews for future authentication.
  • Reduce opportunities for fraudulent candidate information while providing greater confidence in using search engines and other aggregate technologies to automate candidate recommendations and selection.

In a Datatechvibe article, the author states another reason to embrace blockchain for recruitment purposes, “HR managers may become more predictive in anticipating HRM developments by embracing blockchain. They can replace vacant positions faster because the technology cuts the time it takes by leaps and bounds, and they can also improve the data’s legitimacy and dependability.

“Furthermore, they can scale quickly, resulting in a larger candidate pool and a larger data repository to collect data.”

Smart Contracts

When selection of job candidates for contracted or temporary work occurs, an enterprise can institute a smart contract on a blockchain. IBM describes smart contracts: “Smart contracts work by following simple ‘if/when…then…’ statements that are written into code on a blockchain. A network of computers executes the actions when predetermined conditions are met and verified.

“These actions could include releasing funds to the appropriate parties, registering a vehicle, sending notifications, or issuing a ticket. The blockchain is then updated when the transaction is completed. That means the transaction cannot be changed, and only parties who have been granted permission can see the results.”

Such employment contracts provide transparency and immutability for all parties and enable greater enforcement of their terms, conditions, and penalties. With a growing percentage of contingent labor, enterprises can initiate a smoother and more immediate payment system while also benefiting from a paperless process.

Payroll

With smart contracts in place, payroll is where blockchain can add immense value. Much of an enterprise’s most sensitive data resides in payroll — tax documents, pay stubs, benefits information, etc. Blockchain can protect these sensitive records from potential fraud and cybersecurity threats.

In terms of the payment process for contingent and gig workers, enterprises can establish a secure peer-to-peer network and use blockchain for near-instantaneous payment without the involvement of financial institutions. Thus, they can receive instant payment once their contractual obligations are met — without waiting for a pay period or invoice processing.

Blockchain is even more critical for international contractors and gig workers. The Future of Work is a global paradigm with accessible talent worldwide. However, some professionals cannot set up a bank account in their country. Blockchain and peer-to-peer networks solve that issue. In an article for Tech Target, Pam Baker, a technology and blockchain expert, says that with cross-border payments, “Traditional electronic payments (to the receiving country) can be stymied by local regulations and IT security schemes that blockchain payroll systems can overcome.”

Implementing blockchain technology into Future of Work processes will not occur overnight. Enterprises need to work with financial institutions, managed service providers, and other partners to adopt the technology and establish protocols. However, blockchain holds great promise as more organizations pursue digital transformations. The foundation exists to bring blockchain into HR process design. Like many things in business, communication and collaboration will be essential to blockchain’s implementation and realization.

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The Elements That Will Shape the Skills-Based Organization

TalentTechnology and Innovation by Christopher J. Dwyer on

Here’s a phrase that’ll be mentioned many times throughout 2023: the skills-based organization will be the one that thrives during what could be an uneven and uncertain year ahead. Skills is akin to currency in today’s volatile market in such a way that it seemingly creates a have/have not business society. Those with top-tier skills will flourish, and, those who don’t, well…

The latest United States jobs report was rosy from a certain perspective (adding 517,000 jobs in January alone), one that reflects not only the lowest unemployment figures in nearly 55 years, but also an awkward juxtaposition of the discussions around an economic downturn and the continued fight against inflation.

For all the talk about a blooming-yet-complicated job market, there’s another side to this positive news. Ardent Partners and Future of Work Exchange research finds that 73% of businesses currently face a critical challenge in the months ahead: a lack of candidates with the required skillsets for open positions. This is yet another representation of why the skills-based organization (SBO) is a true opportunity to, essentially, reimagine the ways they think about talent acquisition and the role of talent in getting work done.

The most progressive way of thinking here is to apply agility-led principles to the realm of talent acquisition and talent engagement by 1) harnessing the power of artificial intelligence and machine learning to revamp the candidate-matching process, 2) expanding “known” skills taxonomy in an automated manner to account for innovative and future roles, 3) developing a central, on-demand database of skillsets across talent communities (talent pools, talent networks, current employees, etc.), and, 4) leveraging a multi-dimensional nexus of skillsets and expertise from which to address new and evolving requirements based on the trajectory of the greater organization.

The foundational elements of the skills-based organization revolve around the concepts of rethinking the parallels between talent and work; thus, the very future of the skills-based organization depends on forward-thinking strategies, ideas, and, of course technology. Here are the crucial elements that will shape the SBO in the months ahead:

  • Digital credentialing will emerge as a powerful disruptor in the skills validation market. Even in the technologically-advanced days in which we live, validating skillsets and expertise is largely a manual game. Talent acquisition execs and hiring managers (as well as other core HR leaders) must review portfolios, speak to references, confirm education and backgrounds, etc. to ensure that a candidate holds the proper skillsets for the role in which it is applying. Digital credentialing platforms remove nearly all of the guesswork and the tactical elements of skills validation and provide a veritable gateway into verified skillsets, strengths, certifications, etc. that candidates can maintain throughout the duration of their career. Solutions like Credly, Sertifier, Accredible, and Certifier are revolutionizing both the candidate-facing and hiring-led aspects of digital credentialing.
  • Blockchain realizes its potential and becomes a gateway for talent. Across the business spectrum, blockchain has so many potential paths: augmenting data warehousing, tightening legal and financial intelligence, and, yes, reinventing the ways enterprises find and connect with talent. In a hyper-competitive and globalized talent marketplace, the power of blockchain truly shines through; by defragmenting traditional barriers to talent acquisition, blockchain-fueled candidate networks enable hiring managers (and similar leaders) with the ability, in real-time, to view candidate profiles, validate expertise, and confirm career data and portfolios. Candidates own their information, and, subsequently, their career pathways, an important factor in today’s labor market from the worker perspective. The speed in which blockchain presents a match and a connection can dwarf that of traditional hiring. Platforms like the non-profit Velocity Network and innovative solution Braintrust are helping businesses reboot their talent strategies.
  • AI moves firmly into the talent acquisition arena. Artificial intelligence has become, particularly over the past several years, a formidable means of visualizing workforce data through dynamic analytics. Predictive analytics and scenario-building capabilities within workforce management suites and VMS platforms have changed the way HR, procurement, and talent acquisition leaders access total talent intelligence and supercharge their talent-decision making with that data. However, 2023 is the year of AI in talent acquisition; it is imperative that businesses drive real workforce scalability and boost their skills-oriented approach by leveraging artificial intelligence to better validate candidate profiles, enhance skillset-to-job matching, and improve the overall hiring process. Talent acquisition is entering a new, AI-charged era in part because of the advanced technology that can seamlessly streamline the ways businesses not only engage candidates, but also the ways they catalyze the skills-matching experience. Platforms like Opptly represent this exciting new generation of technology, along with solutions like Phenom, Gem, and Gloat, as well as Magnit and both its ENGAGE Talent tool and total talent intelligence offering. Too, solutions such as Glider.ai (robust skills verification and candidate assessment), Fuel50 (recalibrating workforce intelligence), and HiredScore (next-generation, proactive talent-fueled AI) will also disrupt the concept of AI in talent acquisition.

One other factor that could play a pivotal role in the evolution of the skills-based organization is direct sourcing and its impact on digital recruitment, an arena that is founded on the ability to better match open positions with top-tier skillsets. Today’s direct sourcing platforms are a key cog in developing a skills-oriented approach towards talent acquisition, with solutions such as WorkLLama, whose AI-fueled recruitment tools revolutionize candidate collaboration and boost talent acquisition strategies, and LiveHire, whose end-to-end recruitment and direct sourcing technology facilitates a dynamic and holistic approach towards total talent management,

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The Role of Blockchain in Candidates’ Digital Identities

Business LeadershipGeneral InsightsHRTechnology and Innovation by John Yuva on

A more digital Future of Work environment also means an increase in data volume. Information about potential job candidates collected through direct sourcing efforts, as well as more process digitization puts an abundance of sensitive data at HR’s and business leaders’ fingertips. Concurrently, cybersecurity risks continue to grow as threat actors attempt to thwart individuals’ and corporate efforts to defend against them. Enter blockchain, a technology that holds the potential for capturing and securing sensitive personal and workforce data.

What Is Blockchain?

At its core, Synopsis defines blockchain as “a decentralized, distributed, and public digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network.” For each ordered record (i.e., transaction) a block with a timestamp and transaction data is created and linked to subsequent blocks forming a blockchain. Whether it’s financial records, supply chain transactions, or personal information, blockchain guarantees a record of integrity and trust for all parties — without requiring a third party for verification.

Blockchain is most associated with cryptocurrencies like Bitcoin to secure a record of transactions. However, it is gaining more attention in industries outside of banking, including pharmaceuticals, aerospace and defense, and food and beverage, with several companies piloting blockchain technology for track-and-trace initiatives. For example, in the food supply chain, a supplier is unable to alter transaction data such as batch numbers, ensuring the ability to appropriately track and trace specific food shipments in the event of a recall.

The technology is now making its way into the HR function. This week, we’ll look at blockchain from the individual level (digital identity), followed by part two, exploring areas where HR can leverage blockchain to benefit the enterprise.

Defining Our Digital Identity

Our digital footprint includes basic information such as name, address, nationality, and social security number, as well as data related to our banking activities, professional history, and online interactions and behaviors. Much of this information resides on websites and is accessible with a username and password. Unfortunately, security breaches can threaten our information and digital identities — with implications affecting HR and employment databases.

Blockchain and Digital Identity Control

Blockchain is capable of revolutionizing what it means to have a digital identity through digital identity management and a decentralized identifier (DID). Digital identity management solutions can help provide greater control over our own digital identities and who has access to them.

Digital identity management. According to 101 Blockchains, the following are advantages of using blockchain for digital identity management:

  • Blockchain features the elements of maintaining data in an immutable and encrypted manner. Thus, it ensures that the digital identity is secure and easily traceable.
  • The efficiency of blockchain encryption alongside the facility of digital signatures ensures effective “Privacy and Design.”
  • Maintain records of every identity throughout all the nodes across the network and thus make it trustworthy.
  • Maintain the communication metadata in a distributed ledger, and consensus mechanisms help in verifying data authenticity across multiple nodes which improves trust.
  • Set clear roles for identity issuers, identity owners, and identity verifiers by simplifying the processes associated with each stakeholder.

Decentralized identifier. Coupled with digital identity management, a DID provides a holistic approach to digital identity protection through blockchain. Georgia Weston, a prolific subject matter expert in the blockchain space, says the DID is an important concept within digital blockchain solutions.

“It is actually a pseudo-anonymous identifier for a specific object, person, or company, and a private key secures the DID. Individuals who own the private key can prove ownership or control over a specific identity. One person could have multiple DIDs, which can restrict the extent of tracking throughout multiple activities in everyday life.

“…Decentralized identifiers also feature a collection of attestations or verifiable credentials which verify the specific traits of the DID. Generally, the issuers of the verifiable credentials sign the credentials cryptographically. Owners of DIDs could store the credentials on their own without depending on a single service provider.”

DIDs and digital identity management can be critical pieces for maintaining and verifying information about one’s educational background and professional history. Enterprise recruiters and HR can verify and authenticate a person’s identity — but with consent while ensuring their privacy and data control.

Pam Baker, a technology subject matter expert, shared insights and results of a blockchain report by the American Productivity and Quality Center in an article for Tech Target, describing the potential for personal blockchains and the workplace. “Employers would need permission to access and add to an individual’s private blockchain. Employees could provide access keys to employers and then rescind the keys when they leave the organization to maintain control over their personal records.

“Blockchain HR technology used in this way would effectively function as ‘value passports’ that employees could take anywhere and continue to build throughout their careers, according to the report’s authors.”

Future of Work and Mainstream Digital Identification

Blockchain is an evolving technology that requires cooperation and adoption by several entities before it becomes a mainstream solution. Governments, industry, vendors, and users themselves must agree on the foundation and potential regulations for how to leverage digital identifiers. It is a complex but important discussion due to the growth of data through Industry 4.0 and other technologies.

The possibility of having a university issue a college degree or an enterprise award a training certificate via a digital certificate on a personal blockchain is not far-reaching. It represents the purest and most authentic form of our personal and professional histories.

Enterprise recruiters and HR will have confidence that the candidates they select (using blockchain technology to verify and authenticate) truly possess the experience and skills for the position. Digital identity could become the preferred method for applying through a job portal or engaging with a recruiter.

In part two, we’ll explore blockchain from an HR and enterprise perspective. There are several use cases to consider in such areas as contract management, payroll, and recruitment.

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There’s So Much More to the Future of Work

Business LeadershipDirect SourcingHRTechnology and Innovation by Christopher J. Dwyer on

There’s so much more to the Future of Work than what we’ve experienced thus far.

Around two years ago, during the very first summer under pandemic-era living, we had all had a strong taste of what the so-called “Future of Work” had to offer: remote work became a normalized attribute of the modern business, corporate leadership was consistently changing in the face of survival, and digitization proved to be a competitive differentiator as enterprises moved operations as a direct plan of attack against transformative times.

Since then, we’ve collectively learned to “live” with a life-changing virus whilst embracing the major changes in the way we address how work is done. While some businesses have instituted “return-to-office” plans, many others have settled on models that work well for both productivity and the satisfaction of flexibility for the workforce.

More so, businesses are operating in environments that are increasingly more digital and more human, two vastly different elements that are shaping the Future of Work for organizations across the world. The Future of Work Exchange has covered these aspects since its inception, however, there is so much more to this movement than what we’ve experienced thus far over these past two-plus years:

  • The (continued) transformation of talent acquisition and the power of “open talent.” The extended workforce continues to grow. Freelancers and contractors, sparked by The Great Resignation, are “resettling” into new and different (and most importantly, flexible) roles that better suit their needs and purpose. The technology behind how we find and engage talent has been centered on innovation more now than ever before. We haven’t even begun to truly think about how functionality like blockchain can change the Future of Work game; just look at an organization like the Velocity Network Foundation, which blends digital wallets, blockchain-fueled credentialing, and a truly foundational, evolving “rulebook” that guides candidates/talent and businesses.
  • The real-deal application of artificial intelligence within the confines of “work.” Just because an organization currently leverages a flavor of AI does not mean that this translates into a true application of the technology. AI can become even more of a Future of Work gamechanger when organizations apply deeper elements of its powerful reach, including driving efficiency in hiring, powering predictive and prescriptive insights, and enabling stronger DE&I efforts in recruitment. Platforms like HiredScore, Glider.ai, Eightfold.ai, and ModernHire are taking AI in talent acquisition and talent management to a new and exciting era in today’s frenetic labor market.
  • The rise of conscious leadership. The realm of conscious leadership follows a similar path to the one paved by empathy, in that nearly every facet of human contact between an executive and his or her colleagues and staff is rooted in a meaningful, genuine purpose. A leader’s core approaches involve them becoming more aware of their actions, more aware of how kind and, yes, conscious, those actions and insights may be perceived by the organization’s workforce.
  • Strategies that began as extensions of extended workforce management that will become table stakes for the world of talent and work…particularly direct sourcing. Direct sourcing experienced its biggest spike in both prominence and utilization since the beginning of 2020 and there are no signs that businesses will slow how they leverage talent pools and talent communities to inject top-tier talent into their organizational projects and initiatives. Direct sourcing technology is evolving, too, in such a way that “Direct Sourcing 2.0,” which follows AI-fueled, digital recruitment-led functionality (as well as next-generation talent curation), will become the prominent form of direct sourcing as businesses progress their utilization of these critical platforms. Providers such as WorkLLama, LiveHire, Prosperix, Opptly, High5, PRO Unlimited (Direct Source PRO, which has recently integrated WillHire into its solution), and AMS are all contributing to the Direct Sourcing 2.0 revolution.
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Could NFTs Signal Another Future of Work Pathway for Blockchain?

TalentTechnology and Innovation by Christopher J. Dwyer on

The first time I learned about nonfungible tokens (NFTs) occurred while perusing Twitter last summer. Seeing that Topps, perhaps the most-revered name in collectable trading cards, was going “full blockchain” a little over a year ago sparked an interesting dive down a rabbit hole of blockchain, the evolution of e-commerce, and, perhaps, yet another link to the Future of Work movement. Will blockchain finally take its rightful place within the pantheon of Future of Work-era innovation, or will it be limited to the crypto-fueled world of NFTs?

NFTs, Explained…Quickly

Nonfungible tokens (NFTs) are, in essence, a digital record that confers ownership of a specific asset. This record does not bestow “rights” but rather ownership of the asset, details of which are permanently recorded in a public database.

The NFT is stored in a shared global database that runs on, yes, you guessed it…blockchain!

Decentralization is the Future of Work Key

The biggest claim to fame (besides cryptocurrency, of course) for blockchain’s impact within the greater world of business was always its decentralized means of permanently recording information and data in an unalterable way. Back in 2016, which now seems like forever ago (thank you, pandemic!), I wrote about blockchain’s near-limitless potential in transforming how business was done. Innovation, of course, is the pumping heart of the Future of Work movement; blockchain, then, represented a way for businesses to not only transform the way they record information (such as contracts, IP, SOWs, and impactful data), but could also help to streamline the human touchpoints inherent in finance, accounting, payment management, and contract management to permanently eliminate errors and inconsistencies. In the continuing crossover between personal and business worlds, “digital wallets” or “e-wallets” leverage blockchain as a storage device for funds, gift cards, personal information, and more, furthering the growth and impact of blockchain technology.

Even with a pandemic raging across the globe, blockchain still had moves to make in 2020. “Decentralized finance” was a big hit for the blockchain movement as more and more consumers and business leaders alike bought into peer-to-peer transactions that eschewed traditional measures (such as banks and standard payment outlets), and, digital wallets became a trusted means for consumers that wanted to shun cash as a safer payment option while shopping.

“Decentralized commerce,” also known as dCommerce or DeFi, has a simple goal in mind that traverses beyond decentralized banking or finance: untether commerce from monopolistic giants in retail and other major markets. Blockchain-driven dCommerce networks, such as the Worldwide Asset eXchange (WAX), which specializes in the creation and sales of NFTs and similar assets, in addition to the already-proven advantages of digital wallets, could be harbingers of the future of blockchain in other business realms…even in how talent is engaged in the years to come.

“Open Talent,” Frictionless Talent Acquisition, and the Next Great Era of Workforce Management

The concept of digital wallets could point to how talent is engaged and sourced in the very near future. John Healy, Vice President at the World Employment Confederation, believes that this technological progression could very well be the Future of Work movement’s most crucial pathway into connecting people with projects and work.

“Digital wallets are emerging as an essential asset to our personal privacy and safety, and as governments recognize the need to leverage such a tool as a way to have trusted access to verify vaccinations, the next question they are asking is, “What else should be in that digital wallet?” Healy said. “Information regarding your identity, eligibility to work, your education, employment history, certifications and licenses, any assessments, awards or achievements…all part of the solutions that are actively being deployed using blockchain technology. 100%, this is part of how we will reduce friction in the ways that people connect with work – speeding up the time from application to paycheck, and interview to productivity, while also helping improve wellness for individuals and communities.”

If NFTs are the hot tech attribute du jour and bring more attention to digital wallets and the decentralization of commerce and finance through the advent of blockchain, we could certainly soon live in a world that untethers traditional talent networks and places more emphasis on the unalterable permanent scale of information enabled by blockchain. The freeform sharing of ideas, projects, information, intelligence, and yes, even talent, could lead to a relatively frictionless “open talent movement” as a Future of Work undercurrent.

Vaccine records (a topic worth digging deeper into), portfolios of work, certifications, education, and assessments are all critical measures of the true impact and alignment of talent with work and business projects. As decentralization and blockchain continue to transform the world of work, as non-traditional/non-employee talent continues to grow in both size and prominence, and as business leaders continue to rely on talent clouds and talent communities for agile workforce needs, it’s not too difficult to think of an environment in which a peer-to-peer, frictionless, and “open” culture permeates into the next great era of workforce management.

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