Tokenization of talent: the impact of blockchain on recruitment
The hype surrounding Blockchain, Cryptocurrencies, Bitcoin, Ethereum, NFT’s (non- fungible tokens) and decentralised ledger systems shows no sign of diminishing.
Amidst this, what is increasingly clear is the impact that distributed ledger technologies such as blockchain can have on the talent acquisition process, due in part to the rapid growth of decentralised peer to peer (P2P) networking.
Blockchain and talent acquisition
On the one hand, the most obvious application of blockchain technology to talent acquisition processes relates to the validation of candidate resumes, references and qualification checks.
By creating a unified decentralised record system (independent of a company’s own main recruitment system) which requires a candidates’ credentials to be digitally uploaded and verified, an organisation can validate crucial career data securely while still ensuing the security of data and candidate privacy.
In addition to verifying academic and vocational credentials, a distributed ledger/ decentralised talent platform which can easily be shared but never altered, will through its machine learning & AI capabilities, reduce the risk of unconscious bias (gender/race/ age). The result is a more cost effective, transparent and fair recruitment process.
Token for your data?
However, it is the potential to create a token-based talent ecosystem where data is provided to a company by an individual in exchange for tokens, which potentially could have the most significant and far-reaching implications for blockchain technology within the talent acquisition space.
Here tokens are effectively “virtual” shares in an organisation that appreciate as the underlying business succeeds which provides a strong motivation for an individual to participate in these “smart’ contracts.
One early disrupter in this space that has already developed and implemented its own innovative “tokenization of talent” model to introduce financial inclusion to the business environment, is Darshana. This decentralised community, data-driven platform connects diverse tech talent with job opportunities. Founding CEO, Natalie Gil, who is one of the US and LATAM’s leading women in blockchain, and an MIT Sloan Fellow comments:
“We in Darshana found that underrepresented talent worldwide value needs to be unlocked. We believe in empowering the community and keep breaking inefficiencies to bring opportunities to them."
"Therefore, we incentivize their interaction and other activities with tokenization, without borders. Diverse communities have so much in common; we are embracing the differences to grow together.”
As the post Covid-19 workplace becomes more and more fluid and distributed, it is becoming increasingly made up of independent and gig workers. The gig economy has now rapidly become a central pillar of the global workforce, and token ecosystems (as part of increasingly sophisticated digital talent platforms) should significantly aid companies in creating liquid talent pools tailored to their short- and long-term hiring needs.
Offering tokens incentivizes gig workers to provide details on their specific experience to a potential employer so enabling employers to create fluid /consistent networks of specialised talent, through building an element of commitment from those workers.
The future of work
The application of blockchain technology (powered by AI) to create fair and transparent processes, and to build flexible, liquid and nimble talent networks are just a couple of the many examples of a market being disrupted by the application of blockchain technology.
Look out for more news about how blockchain is shaking up the executive search industry and shaping the way businesses think about hiring.