Authenticating resumes is a big problem for recruiters worldwide. The primary problem of this method is that it requires considerable time and money for the Candidate Background Check.
Traditionally, human resource managers conducted background checks by contacting former employers directly or hiring Background Check Organizations. Because the provided data is very sensitive, it must be handled securely during the recruiting process and after that. For speeding and securing the BGV process, verification companies have started to use blockchain technology.
What is Blockchain Technology
Blockchain technology is a peer-to-peer network composed of encrypted data blocks and digital history that can be viewed and confirmed by anybody with the appropriate permission.
Due to the unique properties of blockchain technology, it is finding applications in a variety of areas. Over 80% of the population will engage in some way with blockchain technology in the next decade.
Candidates not only falsify their credentials; many falsify their work history to bloat their resumes. Because most recruiters depend on reference checks to verify employment history, the procedure is lengthy due to the many phone calls and emails. Additionally, finding references who have left the company is a challenge.
As with academic qualifications, blockchain technology may assist recruiters in thoroughly verifying a candidate’s previous employment across several companies. Each company may check this record to ensure that applicants do not post incorrect information.
Once verified, the job history is unchangeable, preventing applicants from manipulating their records. CVerification is a blockchain-based app that combines decentralized background verification systems to verify a candidate’s previous employment details.
Protection of Data
As the recruiting process grows more dependent on technology to improve efficiency, recruiters have access to many sensitive candidate/employee data. With the implementation of data-privacy regulations such as GDPR, recruiters need to keep candidate data properly.
The current practice of uploading and keeping data on a cloud server renders it susceptible to data theft and hacking. Blockchain technology improves data security by encrypting all data and spreading it over a distributed network of computers.
Each computer will have a copy of the data, avoiding data loss if one or more computers in the network fail. Additionally, blockchain is almost challenging to exploit due to its decentralized structure. The whole network encrypts and verifies the data. Each valid transaction requires confirmation from several network users.
Most of the candidates lied on their resumes. A blockchain-based credential verification system may decrease the time spent on background checks, minimize fraud, and build more trust in the recruiting ecosystem. Background checks are getting more complicated and time-demanding.
Companies strive to increase their recruiting efficiency, and it is critical to provide a fast, dependable, and cost-effective screening procedure. Blockchain is a technology to assist recruiting teams in striking a balance between speed and accuracy while also helping in cost reduction.
In the recruiting industry, blockchain technology is growing in use. It offers significant potential for background verification organizations in data management, storage, and verification and may be used for both employees and employers.