HRM Can Benefit From Blockchain: Here’s How

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Blockchain applications in the real world of human resource management (HRM) are gaining popularity in recent years. While many companies are clueless about the applicational benefits, the technology is making an entry into the HR systems.

The adoption of blockchain in HR is a continuation of financial management usage. The digital ledger technology of blockchain can secure the HRM side pretty well at present. It enables individuals to keep, secure, and give controlled access to a full blockchain-driven digital ID based on the qualifications and conditions.

Let us see more about the application and benefits of blockchain in HRM.

Blockchain in HRM

Here are some of the use cases of blockchain in human resource management.

  • Payroll
  • Recruitment
  • Employee management
  • Contract management
  • Data protection


Blockchain can streamline the payroll process of an organization by automating and securing the payment systems. The smart contract system of blockchain verifies the attendance, work completion, leaves taken, or other important information of an employee and automatically assigns the payment. It is also advantageous in cross-border transactions that may take time and can reduce or nullify any payment delays.


Blockchain can provide crucial assistance in the recruitment process for an organization. It verifies the candidate’s CV or resume even if it bends the facts, lie, or exaggerate the experience. Recruitment-oriented blockchain solutions can provide businesses with the most up-to-date picture of a candidate’s qualifications and background.

Employee Management

Blockchain technology secures the employee data. Apart from data storage, smart contracts can be used to give out timely benefits, medical insurance, financial assistance, or rewards of appreciation based on performance and circumstances. It can be programmed to automatically increase the pay scale once the criteria are met automatically.

Contract Management

Any organization will have multiple contracts for different types of activities and needs. Smart contracts can manage, track, permit granting, and payment fulfillment much better than the real person. It improves the speed and efficiency of the contract management process. 

Data Protection

HR departments are in charge of some of the major financial details of an employee like pay, healthcare, finance, banking, disciplinary records, performance records, expense reimbursement, and more. Blockchain is one of the best solutions to keep such data secure. Access to the blockchain is restricted and monitored, which blocks most of the internal frauds and external hacks.

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