Three basic uses of blockchain in salary management and human resources

In the past few years, you may have heard a lot of information about the blockchain and its various revolutionary technologies. In fact, Gartner predicts that the blockchain will create up to $3.1 trillion in business value in 2030, and its potential is so great. However, in terms of salary management and human resources, how much information have you heard about blockchain?

From this perspective, blockchain represents not only a new technology, but also a new way of thinking: especially how it can change the storage and access methods of salary management and human resource data, and how Used in conjunction with other technologies.

Many early adopters have already used blockchain-inspired methods in certain areas of human resources, and the blockchain in this industry is expected to grow exponentially, and they are actively promoting this initial stage. In this article, we will explore three specific areas where blockchain can be applied to make salary management and human resources easier and more efficient on a global scale.

Automatic payment via smart contract

By introducing smart contracts into existing compensation management and human resources functions, a high degree of automation can eliminate most of the administrative burden and leave room for improvement for human error. After these smart contracts in the blockchain meet certain parameters, they can be automatically deployed and paid immediately to employees who have completed their jobs.

For example, these smart contracts can be used to pay contractors or freelancers who have booked a certain amount of work or working hours. Once completed, the smart contract will start to act and process the necessary payments without any intervention from the compensation management team.

This can greatly improve the efficiency of the compensation management team and greatly reduce its cost. They no longer need to manually process personal payments. Smart contracts can allow workers in the gig economy to get paid for their work immediately, and it is also a huge driving force for on-demand payment. Employees can withdraw accrued income through the self-service platform at any time.

Simplify the flow of joiners, movers and leavers

Data custody is an important consideration for current corporate salary management and human resources teams. Employees want to be able to control their data, including deciding who can access and use the data.

Ceding control sounds like it might put employers in trouble. However, by creating an employee data record in the blockchain that allows all parties to access and make changes, it actually makes it easier for the compensation management team and the human resources team to ensure data security, accuracy, up-to-date, and consistency.

The most influential part is when new employees join an organization, existing employees are transferred to new roles internally, or employees leave the company. For example, new employees can grant new employers access to their personal data to speed up the onboarding and screening process without requiring the employer to invest time and resources in data entry or storage. When employees leave the organization, data access is simply deleted, and employers don’t need to do anything to update their own records.

International payments and alternative payments

Blockchain can be used to break many barriers that make global wage payments and international payments difficult or time-consuming.

For example, compared with the currently commonly used BACS or wire transfer methods, cross-border payments, including payments involving currency exchange, can be completed faster through the blockchain. Payments can be verified in real time through a distributed ledger, eliminating the need for intermediaries such as banks and clearing houses, and allowing real-time application of exchange rates, so that payments are always made with the highest accuracy.

Blockchain also opens up the possibility of exploring alternative ways of paying employees. In the initial stage, this may include instant payment of salary to the employee’s digital wallet, and in the potential stage, the employee can use the money like Apple Pay or Google Pay.

But further, there is no reason for companies not to explore Crypto as an alternative, borderless and more flexible payment method. Of course, stablecoins without major fluctuations must be used. The volatility of crypto such as BTC will cause many practical difficulties, and it will be extremely complicated to ensure that taxes and social security can still be paid correctly. But it will provide flexibility in how employers pay salaries to the global workforce and give employees flexibility in how they obtain and use their income.

summary

Once you carefully study the functions that blockchain can provide from the perspective of salary management and human resources, you will find that it is full of potential to change the industry. In an increasingly global business environment, any efficiency in cost, time, or human resources will have a major positive impact and support employees in seeking a better experience. Now is the time to start exploring these opportunities and make compensation management and human resources more efficient and convenient between employees and employers.

The original report comes from CloudPay, a global payroll solution. The Chinese version is compiled and compiled by the chain market team, and the English copyright belongs to the original author. For Chinese reprint, please contact the compiler.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/three-basic-uses-of-blockchain-in-salary-management-and-human-resources/
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