Trakti Smart "Legal" Contracts Blog

How Smart Contracts can affect Human Resources functions

on April 6, 2023

An onboarding process is articulated and requires planned coordination between the new employee and the diverse departments of a company. This process should be focused instead to facilitate the integration for the new hires and allow them to learn more about the organisation, the requirements of the new role, the new team, the values​​, and the philosophy of a company. Setting up an integrated and agile plan for new employees can improve productivity, retain the best professionals in the company, and reduce Human Resources costs. A digital onboarding procedure through a compliant, and intuitive contractual system, speeds up the onboarding of new hires, including identity control, information tracking, evaluation system, payments, and rewards for employees. 

The adoption of Smart contracts, based on blockchain technology is a strategic key nowadays to simplify the job of HR. Checking the skills and qualifications of new candidates, identifying the best profiles, managing contracts and payrolls, and collecting information on your employees are the main areas where Smart contracts can affect Human Resources functions. Tracking employee results over time helps to identify which ones stand out to offer new opportunities to grow or to reward them. 

Blockchain technology can be used to verify the identity, qualifications, credentials, and experiences of potential candidates during the selection process and offers various benefits to Human Resources, such as: 

  • Control of employee work history 
  • Security and access to data 
  • Compliance and regulations 
  • Payments and benefits 
  • Performance monitoring 
  • Training and updating 

New hires can grant the new employer access to their data to speed up the onboarding and screening processes, without the company having to commit time and resources to enter or store information. Candidates can use blockchain to tokenize their identity and provide virtual credentials to a company. A blockchain verification would allow a business to cut the costs of external recruiters usually in charge of background and identity checks of new hires.  Blockchain adoption can allow HR to verify quickly and securely employee data, by reducing costs and cycle times in recruiting and onboarding.  According to APQC, the top three adoption drivers of blockchain in HR are the need to increase transactional transparency, improve transaction speed by reducing clearing and settlement time, and by automating business processes. 

Trakti is a compliant and certified platform, based on blockchain, that allows the creation and maintenance of a large distributed database, immutable and cryptographically protected. Blockchain provides immediate, shared, and fully transparent information stored in an immutable registry that only authorised network members can access. All data is decentralised and traceable. 

The information can be encrypted and immutably recorded on the blockchain, and shared in tokenized form with participants who are granted a verified authorization, allowing candidates to feel safer, working for a company that protects their data. With our all-in-one platform, the payment methods for employee bonuses are defined on the base of certain parameters, making the awarding process more streamlined and transparent. 

Trakti Smart contracts automatically allow certain actions, only if all the conditions set out in the agreement are met. They ensure that all terms of the contract are clear, that documents are signed, that authorizations are granted to the new employee, and they also make it possible to automatically and instantly pay an employee for their work once defined parameters are met. 

Businesses can perform more agile auditing and compliance reports today by constantly monitoring the goals and performance of new hires, keeping them effectively updated, and promptly recognizing benefits and rewards to their employees. Tokenization of rewards via our Smart Contracts can have a positive and significant impact as it fosters worker engagement and increases trust, productivity levels, and collaboration between parties. This kind of approach allows access to real-world data and off-chain computing while maintaining the security and reliability guarantees inherent with blockchain technology. 

Trakti also provides KYC integration with third-party software to simplify ID checks during onboarding. Automating checks allows you to automatically verify the identity and identification documents of new hires. 

With our platform, you can open your account in a few simple steps, activate and configure your profile and upload adaptive, automated, and interactive models thanks to Smart contracts. You will be able to customise contractual templates and insert fields to fill in custom info to select your candidates, activate employee evaluation and review processes, integrate eIDAS compliant electronic signature, implement checks, payments and manage contractual obligations in one certified, compliant, and auditable end-to-end solution. 

Simply create your team, publish your customised model and securely share all information and documents within your workgroup. You can easily allow all members of your team to use your model in self-service mode, generating end-to-end, highly compliant, and transparent negotiation flows.  

Through a seamless data synchronisation experience, Trakti facilitates the management of HR functions, simplifying the selection of new candidates and onboarding processes while increasing employee productivity. 

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