How HR Departments Could Use Blockchain Technology for Background Checks

block chain

Blockchain, a technology involving “chains” of unalterable ledgers, was invented in 2008 for use in managing the cryptocurrency, Bitcoin. Essentially, blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. It’s managed by a peer-to-peer network that adheres to protocols for communication and validation of new blocks. It’s compelling, because it’s so unchangeable: blocks can’t be altered retroactively without alteration of all subsequent blocks, which requires collusion of the network majority.

Increasingly, however, blockchain is for more than Bitcoin.

It’s even showing up in human resources (HR) departments. HR personnel looking to save time combing through resumes and dodge “embellished” claims are using blockchain to verify educational and experience claims on applications directly, according to HR Dive’s Riia O’Donnell.

“When it comes to resumes, blockchain technology has the potential to largely eliminate exaggeration,” wrote O’Donnell. “Schools can post degrees and educational details, employers can share dates and titles, and credentialing entities can make information available. Candidates could then authorize employers to access their records directly.”

Third Party Verification

Lying on resumes is nothing new. A survey conducted last year found that 85 percent of HR professionals found lies or exaggerations on resumes. Faked educational credentials are a common problem. With this in mind, HR professionals are increasingly wary of resume claims, but often lack the time and resources to check the truth of educational and experience claims.

Blockchain for Education Verification

Blockchain can help employers go directly to educational sources for verification of applicants’ claims. Last year, MIT became one of the first universities to debut a blockchain tool for human resources professionals to verify degree information directly.

Employers or third-party verification companies may soon be able to use blockchain technology to perform background checks. Going forward, human resources departments could be able to use the technology to seek out ideal candidates who may not even be applying for open jobs.

Today, third-party verification from companies like DataCheck remain the gold standard of employment verification for information such as the accuracy of a candidate’s experience, employment, education and criminal history.

Contact us today to discuss all your pre-employment screening needs.

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