Chapter 9 - The application of blockchain in talent supply chain management

Abstract

The talent supply chain in human resources includes various functions like talent sourcing, hiring, contracting, background verification, employee database management, skill-mapping at various stages of the supply chain linked to hiring, learning, internal mobility, and payroll processing. While Human Resource Management is at the threshold of adopting the Social, Mobile, Analytics, and Cloud-based technology, adopting blockchain technology is not far behind. Many organizations see blockchain as a breakthrough in hiring, background verification, payroll processing, for record-keeping related to employee's data and maintaining legal contracts in the gig economy. In talent sourcing, data security is a matter of concern. Data obtained from various sources like applicants or employees are subject to cyber security threats. Another concern is resume fraud, which pertains to presenting oneself favorably to recruiters through information in the resume that is fraudulent like fake qualification and course certificates, awards, client feedback, etc. Authenticating data remains a gray area, with intermediaries like background verification agencies adding to the recruitment cost. The presence of intermediaries in the supply chain like hiring agencies also adds to lack of confidentiality of personal data. In the talent supply chain, skill-mapping is important for judging quality of hires, internal performance assessment, and identifying learning and development needs. Again, for contractual employment, it is important to respect the rights of all actors involved in the contractual process so that the process is risk-free, fair, and legal. Both cybersecurity threats and fraudulent practices can be mitigated by using blockchain technology in employee data storage, validation, and management. Similarly, blockchain helps in providing a direct link to suppliers along with supplier validation and entering contracts. This does away with the presence of intermediaries in sourcing. Thus, this study discusses how blockchain technology can provide effective solutions for multiple use cases in the talent supply chain through distributed ledgers, consensus mechanisms, public and private blockchains, smart contracts, usage of tokens, and cryptocurrency for transfer of payments, etc. The study further discusses the limitations and barriers to implementing blockchain technology and the implications of adopting blockchain technology in talent supply chain management.