If you’re hiring for a project or a job, what’s the biggest risk you face? The answer is that the candidate you hire shows up and does such a lousy job that you have to replace them, mop up their mess and probably still pay them for their time.
Here’s a harder question: how do you prevent that disaster from happening? After all, references can be phony or exaggerated, resumes can be spun like cotton candy, and competence can be masked by good looks and charm. Until recently, there’s been no easy answer, but soon, the blockchain will come to the rescue.
One of the marquis features on ChronoBank’s roadmap is to store candidate work performance records and ratings, as well as identity information, on the blockchain. We, and many others, including PwC and Deloitte, believe this to be the next logical evolution of HR.
What Uber Got Right
Imagine if every time you summoned an Uber driver, you were handed a stack of resumes and asked to pick the driver you thought sounded most qualified. It would be an absurd slog, but that’s how most candidates are screened today across industries. We call this HR 1.0.
Thankfully, Uber eschewed resume-flipping for a specialized 5-star rating system. The result works well and spawned an entire industry of Uber-like services. Specialized rating systems are even spreading to other, more nuanced fields, like programming, where candidates take coding tests and skip the normal interview gauntlet.
If resumes are HR 1.0, then specialized rating systems are HR 2.0. But there’s a 3.0 coming: blockchain-based credential systems. Why do we need a 3.0? Because specialized rating systems have two major flaws.
First, they’re not portable. The Uber driver who switches to Lyft can’t take their ratings with them, which is silly because a great Uber driver should also be a great Lyft driver. Lack of portability gets worse when you consider that Uber may one day go out of business, its servers may be hacked, or it may change its rating rules entirely.
Second, specialized rating systems are, well, specialized. With the rise of the gig economy one person may juggle six different gigs in a given week. That’s six different ratings to manage! Outside of the gig economy, people are job-hopping at an increasing rate. Multiple, siloed rating systems used to score the same person are wildly inefficient.
What about including other data about a person in their rating? If an Uber driver is a great conversationalist, that fact should translate well into other jobs. Or storing certifications or peer reviews. The possibilities are endless.
What’s needed is a decentralized, universal system to store ratings across multiple dimensions. Such a system would help candidates more easily apply to jobs and help employers more reliably select them. That’s what we’re building!
LaborX and HR 3.0
ChronoBank’s LaborX platform will usher in HR 3.0 by storing the ratings that employers give to their candidates for work completed on the blockchain. Because the blockchain is immutable and decentralized, ratings are portable, traveling with the candidate outside of LaborX, and live forever.
We won’t stop there. LaborX will factor in a rich array of data points for each candidate, including verified employment history, educational records, and different facets of how they performed. Multi-dimensional ratings are needed for the modern age where work is more complex and where people move from gig to gig and from career to career. For example, if you’re hiring a graphic designer, wouldn’t it be helpful to know that they performed reliably and hospitably in their last 20 non-graphic design gigs? Of course!
HR 3.0 will help both employers and candidates. Employers save time screening candidates because they have a complete picture of their prospect with verified, tamper-proof data. And candidates save time because they can sell themselves on merit and not just on price or pitch. Both profit from data that is portable, universal, and lives forever.
HR 3.0 is coming and we’re excited to be on the vanguard with you!
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