Mobility - July 2020 - 34

"We need to fix the way that career data is
exchanged, the processes that underpin this
whole global labor market," says Yvette Cameron,
co-founder and executive vice president of Velocity
Career Labs. "We need to restore trust. We need to
ensure that the information that's exchanged is valid,
trustworthy, and certified, but also to ensure that
individuals have control over that data and have control over who's using it and how it's being used. Let's
fix this broken data exchange system."
And in an age of uncertainty, blockchain builds
business agility, positioning HR technology as a strategic tool for global competitiveness and survival.
"Businesses need a different way to deal with
new digital assets and interactions without involving an intermediary that can collect data on every
party in the transaction and take a piece of the
value," says Matthias Graf, senior director analyst
at Gartner's Cost & Budget Research for the HR
Practice. "Enter blockchain."

BLOCKCHAIN IN THE REAL WORLD

Blockchains consist of virtual blocks on the internet,
holding the data that goes into hundreds of transactions. Each block links to a virtual chain that makes
each entry immutable and tamper-proof. Networks
of individual computers constantly check every piece
of data for veracity. In HR, veracity is a precious
commodity, and blockchain technology is sealing up
traditional weaknesses.
"In its simplest terms, blockchain technology
makes it possible for two or more people, businesses,
or computers that may or may not know each other
to exchange value in digital environments without
having an intermediary between them validating and
protecting the transaction," says Graf.
By 2022, more than 40% of 500 global organizations
surveyed expect to test or use processes enabled by
blockchain or artificial intelligence in HR, according
to a recent Gartner poll. The top three areas in which
companies are using or piloting blockchain in HR are
analytics and reporting, policies and governance, and
workforce planning and management.
These areas benefit because blockchain enables
secure, real-time distribution of data, "with all
transactions being cryptographically signed, timestamped, and sequentially added to the chain,"
says Graf. "Blockchains cannot be read, written,
deleted, or changed."

34 Mobility | July 2020

However, Gartner distinguishes between adaptation and implementation, noting that the areas in
which blockchain use is most advanced are the fields
driven by finance, data, or contracts. These include
compensation and benefits, attraction and recruiting,
and employee relations and labor law. Projects thrive
in areas involving "a high volume of data, many
transactional elements, as well as many stakeholders involved with a shared, single version of truth
required and no single entity in control," says Graf.
While many companies using blockchain for HR
are seeking process efficiencies and cost savings,
blockchain can also help create new business models
and revenue streams. Blockchain is better equipped
than traditional, centralized structures to handle massive volumes of transactions and manage risk.
"If its potential is realized, blockchain will move
the world economy away from slow, expensive,
analog-based methods we have relied on since the
19th century to establish identity and legal status in
transactions," Graf says.

REMOVING THE MIDDLEMAN

In personnel management, blockchain-supported
processes can help answer the basic question of who,
exactly, is capable of performing the functions vital to
business success and competitiveness.
Traditionally, an individual's work and education credentials are distributed across the multiple
silos of academic institutions, HR tracking systems,
online learning tools, freelance platforms, and
more, says Cameron. Aggregating, securely storing,
and managing a consolidated profile "is critical to
how we match individuals with opportunities in
work and education."
"Blockchain helps secure the trustworthiness of
these aggregated records by ensuring that those
credentials have been sourced from a trusted
authority and, once issued, that they have not
been tampered with," she says. "With blockchain,
we can get to a trusted, comprehensive view of
individuals to drive better recruiting and talent
processes across the globe."
For example, Cameron's Velocity Career Labs is the
lead founder of the Velocity Network Foundation, a
nonprofit consortium consisting of 15 companies-
and growing-in HR, education tech, staffing and
recruiting, freelance platforms, and assessment
processing. Founded in 2019 and currently in active



Mobility - July 2020

Table of Contents for the Digital Edition of Mobility - July 2020

Mobility - July 2020 - Cover1
Mobility - July 2020 - Cover2
Mobility - July 2020 - 1
Mobility - July 2020 - 2
Mobility - July 2020 - 3
Mobility - July 2020 - 4
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Mobility - July 2020 - Cover3
Mobility - July 2020 - Cover4
https://www.nxtbook.com/ygsreprints/WERC/mobility_092020
https://www.nxtbook.com/ygsreprints/WERC/mobility_082020
https://www.nxtbook.com/ygsreprints/WERC/mobility_072020
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https://www.nxtbook.com/ygsreprints/WERC/mobility_032020
https://www.nxtbook.com/ygsreprints/WERC/mobility_022020
https://www.nxtbook.com/ygsreprints/WERC/mobility_012020
https://www.nxtbook.com/ygsreprints/WERC/mobility_122019
https://www.nxtbook.com/ygsreprints/WERC/mobility_112019
https://www.nxtbook.com/ygsreprints/WERC/mobility_102019
https://www.nxtbook.com/ygsreprints/WERC/mobility_092019
https://www.nxtbook.com/ygsreprints/WERC/mobility_082019
https://www.nxtbook.com/ygsreprints/WERC/mobility_072019
https://www.nxtbook.com/ygsreprints/WERC/mobility_062019
https://www.nxtbook.com/ygsreprints/WERC/mobility_052019
https://www.nxtbook.com/ygsreprints/WERC/mobility_042019
https://www.nxtbook.com/ygsreprints/WERC/mobility_032019
https://www.nxtbook.com/ygsreprints/WERC/mobility_022019
https://www.nxtbook.com/ygsreprints/WERC/mobility_012019
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