How will Web3 reshape the career path in the future?

More than a decade ago, after companies needed people, they generally released recruitment advertisements through traditional media such as newspapers, or went to the talent market for special recruitment. If there were senior talents, they would find a headhunting company for “hunting”. The disadvantages of this model are obvious, that is, there is obvious information asymmetry, and the audience is relatively limited. The cost of publishing advertisements is high, the display time of recruitment information is short (the validity period of newspapers is generally 24 hours), and the audience of news is small. Therefore, news can only be passively published, and news cannot be actively delivered to those who need it by means of news subscription. If you go to the talent market to recruit, first, not to mention the high cost, HR managers may spend most of the time at the recruitment site waiting for the arrival of job seekers, and because the needs of both parties are not well matched, the resumes they receive are valid. Even worse. If the headhunting company method is adopted, it is only suitable for the recruitment of a small number of middle and senior talents.

With the advent of the Web2 era, HR managers of enterprises only need to publish news on professional recruitment websites (such as 51Job, BOSS direct recruitment, etc.). In addition to news release, HR managers can also actively search for job seekers’ information on the talent website, and conduct information search and comparison according to the company’s talent needs. This way, companies have more options. At the same time, job seekers do not need to keep an eye on the information updates of the talent website. They only need to subscribe to recruitment information according to their job-seeking requirements. As long as there are recruitment information that meets the conditions, they can take the initiative to send them to WeChat or email. In this way, the degree of information matching between the two parties is optimized.

However, the vast majority of these current recruitment platforms are centralized, and there are bound to be problems such as opacity, distrust, and contract disputes. Once job seekers upload their information to the website, they no longer have control, and the website may package and sell your information to third parties for profit. In addition, some job applicants may provide false information, which may increase the difficulty of personnel selection for the company. There is an urgent need for a new model that can improve recruitment efficiency and protect job seekers’ information well.

As we all know, blockchain is characterized by distributed storage, encryption, and immutability. Will blockchain + recruitment, namely decentralized recruitment, become a trend in the Web3 era?

Online Recruitment in the Web2 Era

Advantage

The earliest recruitment process is a vertical task processing trajectory, which requires repeating the same process to complete multiple tasks. First, it entails designing job descriptions and identifying job seekers’ geographic and social positions in the labor market. The company then needs to decide on viable ways to attract job candidates, such as advertising in newspapers or finding high-quality resumes from recruiting agencies, a process that costs a lot of money to advertising media and middlemen. Third, after the first two steps are completed, the applicant information will flood into the human resources management department for screening. At this stage, the HR manager needs to continuously screen these resumes, then re-evaluate them, and finally select them to the interview stage. All these processes increase the workload of managers to a large extent, and the traditional recruitment process contains a lot of personal information that needs to be manually processed, which can easily lead to the leakage of job seekers’ private information.

Recruitment in the Web2 era can be seen as a horizontal integration that can process information synchronously. Online recruitment also mainly includes three steps. The first step is to fully consider the advantages of network promotion, design a reasonable website, update the database in real time, and track potential applicants. Second, help job seekers conduct online tests, online video interviews, and screen out potential employees. Finally, HR managers can take advantage of the automation of network communications to easily notify candidates of hiring results. In addition, the recruitment platform can automatically archive the remaining talents to the enterprise talent pool for future use after the recruitment is over. Unlike traditional recruiting, online recruiting can be screened without time and resource constraints. At the same time, compared with traditional recruiting methods, online recruiting is more inclined to two-way communication, which means that job seekers can break through geographical and time constraints and track their resume review at any time.

disadvantage

Although the recruitment model of Web2 has changed a lot compared to traditional recruitment, it also brings new problems:

Massive and ineffective information

Because the cost of posting resumes online is very low or even zero cost, a large number of job seekers freely submit their resumes online. Although companies have obtained a lot of job-seeking information, most of the resumes are invalid in the eyes of companies due to the blindness of job-seekers. of.

Information asymmetry, untrustworthy

In order to win more job opportunities and better positions online, job seekers often falsify their personal information, and companies often only show the good side of the company in order to recruit better talents, resulting in The credibility of the information is low.

Information is easily leaked

As mentioned above, most recruitment platforms have a centralized database, which is likely to be attacked by third parties or malfunction due to lack of maintenance, and even some black-hearted platforms will openly sell user information.

Cumbersome and inefficient recruitment process

Enterprises must first select qualified candidates from a large number of resumes, and then conduct interview screening again and again to determine the work location and job position… This series of processes requires a lot of time, manpower and material resources.

high membership fee

Although most recruiting platforms are free for all users, to get businesses noticed more quickly, it usually costs hundreds of dollars to buy a premium membership, which is a lot for job seekers who don’t have a job yet. cost of.

Exploring other modes

How to get out of this recruitment and job-hunting dilemma? Both job seekers and companies have made many attempts:

  • vertical platform

A recruitment platform that is vertical to a certain field can solve more precise recruitment problems, for example, Lilac Garden is vertical to the medical industry and so on. However, the popularity of such a vertical recruitment platform is difficult to achieve, and it often takes many years of hard work in the industry to be well-known to job seekers.

  • headhunting

Some companies try to use the headhunting method to solve the problem of the quality of recruited talents, but the headhunting method may only be suitable for high-end positions, and the price is high. A large number of low-end positions cannot be recruited through headhunting.

  • Employee referral

Reposting recruitment information through the company’s internal employees in the circle of friends, but this method has limited effect, and the probability of people in the circle of friends who can meet the company’s job requirements is too small.

  • Community promotion

Establish a recruitment chat group, and the group owner regularly publishes recruitment information. However, this method has no substantive rewards or very few rewards for the group owner, and the motivation is insufficient. Moreover, chat groups are not easy to manage and may be filled with advertisements or false information.

Since these models have more or less drawbacks, perhaps decentralized recruitment is the way of the future. The essence of decentralized recruitment is a fission-type recruitment method centered on the blockchain technology as the bottom layer, and the recommendation of talents can benefit all parties.

Decentralized Recruitment in the Web3 Era

The advent of the Web3 era will dramatically change the way we work, and blockchain projects such as Bitcoin and Ethereum have proven the utility of decentralized networks. Participants come together to build the network, provide and pay for services, and manage development without a central authority. Its decentralized structure, anonymity, and data ownership by users can well solve the shortcomings of the recruitment model in the Web2 era. Traditional “work-to-retire” contracts between employers and employees are being disrupted by short-term, rapidly changing contracts. Work history is changing from a subjective record to an immutable record with ratings and verifiable expertise. Inefficient and overpriced middlemen are being replaced by software and liquid markets governed by algorithms. The highly centralized hierarchies of the past are being replaced by decentralized networks.

With blockchain technology as the bottom layer, the control of the content is completely handed over to the users themselves. Recruiters can create and share data by themselves to obtain income, and spread information based on their own social networks and network connections. At the same time, the platform will provide rewards to every user who creates and disseminates content. Through this kind of network expansion, suitable talents can be quickly located and recommended, and each user can become a headhunter and use his own network resources to realize the realization, which fully solves the shortcomings of the traditional human resources system.

Here the author introduces the main process of decentralized recruitment through a simple example.

User A publishes a job requirement related to blockchain technical talents on the blockchain-based network platform. After paying a certain Token, this requirement can be spread to the entire network. After receiving the request, user B found that there were many friends who knew about the blockchain, so he created the request task, and then forwarded the request to the circle of friends. B’s friend C entered through the circle of friends and successfully applied for the position of A. need. Then all users can get the corresponding Token reward. This Token reward is not only the reward issued by the publisher, but also a reward given by the platform to the participants.

If C finds that it is not suitable after applying for the job, he can continue to spread the demand on the platform or forward the demand to the circle of friends, or entrust other friends to forward and recommend, and so on until suitable talents are recruited. Each communicator can get the corresponding Token reward, each independent individual is a HR, and everyone is a headhunter.

commonality

Process: The basic process of the two recruitment methods can be summarized as recruitment, selection and employment.

Form: In the two recruitment methods, interviews are essential in the selection process of personnel. No matter what technology is used in the current recruitment process, there is a certain degree of subjectivity.

Purpose: The ultimate purpose of both is to find high-performance talents that meet the job requirements for the organization.

Advantage

  • more secure personal information

The information of each job seeker is stored in a simple application, including address, phone number, work experience, education certificate, etc. Unlike traditional recruitment platforms, with the support of blockchain technology, users have the right to own 100% control of the resume, without its own permission, even the platform cannot share the resume to third parties.

  • Better Incentive Mechanism

Through the mining logic of the blockchain, an incentive mechanism of “behavior is an asset” is built in the talent value circulation system. Whether it is an enterprise or a job seeker, it can create value for the ecology through its own behavior, thereby obtaining Token rewards and realizing benefit sharing.

  • A more realistic resume

Traditional Internet recruitment is very easy for job seekers to forge personal information, and it is difficult for companies to verify them one by one. On the blockchain, each enterprise and job seeker has a unique digital signature that cannot be forged. This signature is linked to their digital identity. Personal education and certificates are stored on the chain using encryption technology and cannot be tampered with. Greatly reduces the possibility of resume fraud.

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 Certificate verification

  • More reliable smart contracts

After recruitment is complete, businesses and job seekers sign a smart contract on the blockchain that holds employment contract information such as both parties’ signatures, payroll details, performance reports and even medical reports. In the event of a future dispute, the liquidated damages will be allocated directly to the employer or employee, which is far more reliable than a third-party agency.

case analysis

Braintrust – the world’s largest freelance platform

Introduction

Braintrust is a decentralized talent network that matches highly skilled technical freelancers with top companies from global brands such as Nike, Deloitte, Nestlé, NASA and more. Companies that have successfully recruited only need to pay Braintrust 10% of the labor contract amount as a handling fee, which is lower than the traditional recruitment platforms on the market. The business scope of Braintrust is different from the well-known platforms such as BOSS direct employment. It is biased towards the “gig economy”, that is, companies and job seekers sign short-term contracts, work for a certain project and settle the compensation.

In addition to the lower price advantage, Braintrust’s recruitment is more efficient. According to the information disclosed by the platform, Braintrust’s matching algorithm has reached 80%. It can connect the company with 4 to 7 freelancers within 24 hours after the job posting. The entire matching process takes an average of 48 hours. For comparison, the company is in The time spent on other platforms is around 2 weeks.

Due to the impact of the global epidemic, remote and online work has now become the norm, and the number of freelancers is increasing exponentially. With the emergence of more and more freelancers in the market, companies are gradually shifting their business Outsourcing, this work model has created millions of jobs, and Braintrust has taken a fancy to this huge market and chose a different approach from traditional recruitment platforms.

Based on decentralization, Braintrust builds a distributed employment hub for both employers, and Braintrust can ensure the security of users’ information. In short, Braintrust enables users who need short-term employment to collaborate safely and efficiently through the decentralized approach of blockchain.

Braintrust was founded in May 2018 by Adam Jackson and Gabriel Luna-Ostaseski. Jackson has founded four venture capital firms and a blockchain asset management firm. Luna-Ostaseski is an advisor to several tech companies including Lending Home, Quartzy and YPO.

Its early investors include Variant, Multicoin, ACME, Hashkey, Pantera, etc. Among them, Multicoin Capital has also invested in many projects in the Web3 field such as Helium, Arweave, and Livepeer. In September 2021, Braintrust crowdfunded $11 million through Coinlist, and in December of the same year, Coatue and Tiger invested $100 million in Braintrust in the form of purchased tokens.

tripartite

There are three parties in the Braintrust ecosystem: job seekers, enterprises and connectors. Users need to choose one of the identities when registering on the Braintrust platform, and have different logic and requirements according to the identity.

Job seekers need to go through a screening process to verify their background and skills. It is worth noting that Braintrust currently limits job seekers to software engineers or mobile developers. This is not occupational discrimination, but because these jobs are relatively For others, which are easier to quantify and do not limit the venue, after approval, job seekers can apply for different jobs. Job seekers can make their job search information more advanced by staking tokens. At the same time, Braintrust also offers different courses for job seekers to improve their skills.

Enterprises can post jobs and pledge tokens to attract more job applicants. After successful recruitment, enterprises need to pay a 10% handling fee for the labor contract of the Braintrust node (the handling fee is fiat currency, and the node is responsible for converting from fiat currency to USDC, and then Repurchase tokens from the market, this is to ensure the balance of the fund pool). Braintrust also allows both companies and job seekers to rate each other after completing the project. After getting a 5-star rating, they can get token rewards. In addition to being a profit, it can also be regarded as a kind of reputation certification.

Connectors recommend each other for job seekers and companies, which is commonly referred to as “headhunting.” Every time a job seeker and an enterprise successfully cooperate, the connector will receive a token reward of a certain percentage of the double-issued contract amount.

token economy

On September 1, 2020, Braintrust issued BTRST as its utility and governance token. BTRST is the core incentive mechanism for users to establish, participate and govern the community, which runs through all the links of job seekers, enterprises and connectors using the platform. Any link such as building a personal resume, skill certification, learning courses, recommending new users, helping with auditing, etc. can get BTRST rewards.

Braintrust’s total supply of BTRST is 250 million, of which 54% is used for community incentives and rewards (unlocked at network launch and distributed to the community incentive and reward program over time) and 22% for early token purchases 19% goes to early contributors (4-year release schedule, 1-year clutch), the remaining 5% is used for CoinList sales (3-month or 6-month lock, Released monthly according to tier).

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Token distribution

In addition to incentives and rewards for recruitment, it is also used for community governance. Holders of BTRST can come up with ideas for improvement and vote on governance proposals, and users with more tokens have more voting power. Unlike other voting models, Braintrust’s governance is divided into two parts, on-chain and off-chain.

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community governance

When a community member initiates a proposal, if the proposal does not involve changes to the smart contract corresponding to the product logic, an off-chain voting session will be conducted. Off-chain voting takes place on Snapshot, which is divided into two steps. The first step is to vote on popularity. If the popularity is high enough, the second step is consensus voting, which is to discuss the proposal itself and come to a conclusion.

When a proposal initiated by a community member involves a change to a smart contract, an on-chain voting session will be conducted, and community members will vote to decide whether to pass the change, use multi-signature in the execution process, and finally publish the result of the execution.

future recruiting models

more inclined towards the gig economy

According to data from Hashkey, a crypto investor, nearly 40% of the working population in the United States are freelancers due to the epidemic, and the freelance market is about $1.5 trillion. In my country, there are nearly 200 million people in flexible employment. , the market is shifting from long-term employment relationships to short-term or flexible working methods, showing the huge market potential of freelancers and gig economy. In the future, there will be more and more jobs, especially those related to the Internet industry, which will take The “gig economy” model of remote and online office work. The decentralized recruitment platform based on blockchain technology can better solve some problems such as contract disputes in the traditional gig economy. However, these current platforms such as Braintrust, Freela, etc. are still limited to blockchain-related industries, and they are not deeply involved in other traditional industries. Although the global blockchain market size is close to 10 billion US dollars, it is different from the traditional Web2 Internet industry. far, the market potential is huge.

Big Data Decentralized Recruitment of Web2+Web3

At present, most of the Web2 recruitment platforms on the market use big data algorithms to assist users in matching. If users have been on the Internet for a long time, they may have been “portraited” by big data when they first entered the platform. Of course, this involves To the problem of invasion of privacy, but it is undeniable that big data does help users solve problems better. On the blockchain, privacy issues can be well resolved. No platform can obtain user information without the user’s authorization. Big data has become more transparent and open, and users can freely choose the information to be disclosed.

As mentioned above, in the traditional recruitment mode, resumes are very easy to fake, but even so, resumes are still the only way for companies to understand job seekers. In the Web3 field, a resume is no longer a necessity. After all, it is far more convenient for enterprises to verify the skills and work experience of job seekers in the Web3 field than to verify academic qualifications and certificates. Scan the blockchain through big data and rate the candidate’s on-chain experience and projects that they have participated in. If it is higher than a certain rating, it may be directly hired within 60 seconds, eliminating the subjective factor of the interview and greatly saving time.

Summarize

Could Web3 be the next game-changer in recruiting? Will Web3’s recruiting platform definitely beat Web2’s recruiting platform? It’s too early to tell, the only thing that’s certain is that the ones that stand out from the crowd of recruiting platforms will be those that draw the least rake between job seekers and businesses. While Web3 recruiting platforms that are decentralized and fully managed by their users may draw less rake, that doesn’t mean they will necessarily win over the competition, they still need to deliver a great product and accomplish the tough tasks required to run a marketplace .

At the same time, the Web3 recruitment model still needs to face many challenges:

  • Due to the online office, employees may work in multiple jobs, which is of course a good thing for job seekers, but for early-stage startups that want highly engaged employees, it will reduce the contribution of employees to the company, and also More difficult to retain employees. While this also happens in Web2, it is much easier for employees to switch jobs due to the decentralized nature of Web3.
  • Talent recruitment positions are limited, mostly those that do not restrict work locations and have easily measurable outputs. Not all positions have similar characteristics, and it is difficult for the platform to attract users from other occupations to join.
  • The value capture of the token itself is not strong, and it is mainly used for incentives and governance, but in fact, basic job-seeking requirements can be completed even without using tokens.

Just as open source revolutionized software design, decentralization and Web3 technologies are changing the recruiting industry. It is believed that in the near future, the decentralized recruitment of Web3 will become the mainstream of the industry. Of course, this requires the joint efforts of everyone in the industry.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-will-web3-reshape-the-career-path-in-the-future/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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