The Future of Work: 3 Use Cases for Blockchain Technology in the Workplace
Employers live in a world where business and the workplace are increasingly becoming more technology-driven and data-intensive. From a workplace perspective, employers are relying more on technology to securely collect, store and process data, manage payments to workers and navigate a host of other challenges found in the modern workplace. Blockchain technology can make these processes even more efficient and optimal for employers. You may be curious about this emerging technology, but unsure how it can actually be deployed to your advantage. These insights give you three real-world use cases you can implement today—along with some considerations to consider before taking the leap.
Pop Quiz: What is a Blockchain?
As a quick refresher, a blockchain is a digital ledger that contains an immutable historical record – or chain – of all transactions that have occurred on the blockchain’s network. The digital ledger is also transparent and immutable (ie irreversible), making it difficult to falsify information. Essentially, a blockchain is a digital record of all transactions ever made within a given system, and the data it holds cannot be deleted or altered. Also, because many blockchains can be seen by anyone working in the chain, this makes it very difficult to falsify information or engage in fraud, increasing the authenticity and security of all information in the chain.
If you want to learn more, you can access our short explainer video here.
3 Use Cases for the Future of Work
The existence and continued development of blockchain technologies could fundamentally change the way many companies do business in various areas, including human resources, employee and client payments, international operations and benefits. Here are three use cases where blockchain technology can benefit employers.
1. Make the onboarding process smooth
Blockchain technology, in combination with smart contracts (ie, code programmed on the blockchain that runs automatically when a series of conditions are met) can have a significant benefit to the onboarding process. Onboarding usually requires coordination between the new employee, administration, HR, IT, and sometimes finance or legal. This can be a heavy lift for the employer as you work to ensure that all documents are signed and verified, and that all permissions are given to a new employee.
However, these actions can be easily managed through actions programmed into a smart contract. This can remove administrative friction and save you time that could be better spent performing other more extensive tasks.
For example, imagine that a new employee satisfies a requirement necessary for additional access to IT systems or proprietary information, such as submitting specific documentation or completing privacy training. A smart contract can instantly and automatically activate their employee’s status and corporate access upon satisfaction of the requirement, while recording the transaction to prove it happened.
2. Give you improved access to external talent
Blockchain technology can also provide improved access to external talent you may not otherwise reach. Because payments on a blockchain can be made anywhere in the world in real time, in an agreed cryptocurrency, this can appeal to talent pools that were previously inaccessible because they were too far away, or their identity and experience could not be verified.
Being able to pay on the blockchain also gives access to approximately two billion people in the world who are unbanked (ie people who don’t have access to traditional financial services), some of whom may easily have some of the sharpest and brightest minds around. Accessing these external talent pools can be a huge advantage for employers as the battle for top talent in a particular industry can be intense. Additionally, because the transactions are irreversible, the use of blockchain technology enables employers to maintain clear and accurate payment records for audit and compliance purposes.
3. Make revision answers a breeze
Speaking of audits, if you’re ever faced with the dreaded situation where a federal or state regulatory auditor appears out of the blue and demands that you quickly provide employment-related records dating back several years, blockchain technology can be a lifesaver. Blockchain makes it easier for a business to manage an audit because it can quickly and securely share its stored records with regulators in near real-time.
As a result, the time and cost spent on document collection will be drastically reduced. In addition, because the information is secured on the blockchain, the chances of the documents being fraudulently altered or manipulated are significantly reduced.
Considerations
While blockchain technology has many potential benefits, that doesn’t mean it’s necessarily right for your business. Some important things to consider include:
- Do you need Blockchain technology? You should consider whether you believe the benefits provided by blockchain technology can improve your workplace or business operations. Are you talking about blockchain just because it’s good marketing, or have you evaluated friction points where the inherent capabilities of this technology can make sense for your business? Using blockchain technology for a task better suited to another technology can only complicate things and will create a poorer user experience and cost you more money and time in the long run.
- Public vs Private Blockchain? Depending on the nature of the information, you may have concerns with using a public blockchain – as anyone else using a public blockchain can see your transactions. This can present challenges if you want to use blockchain technology for transactions that contain proprietary, sensitive or confidential information. Although there are options for keeping such information secure, you must consider whether transferring or storing this information on a public blockchain makes sense when you consider that inadvertent disclosure may violate privacy laws, health laws, or the terms of confidentiality agreements. Private blockchains provide an alternative, but they have their own trade-offs. You can dive further into this topic here.
- What about the law? Depending on your potential use case and the intersection between this use case and your company’s needs and industry, you need to consider different workplace issues. These may include the applicability of federal and state wage and hour laws, misclassification laws, international employment law issues, benefits laws, privacy laws, and HIPPA, among others. You must also be up to date on the legal positions taken by various public agencies, especially the Ministry of Labour. Failure to capture all angles can have detrimental results for your business. As a result, using blockchain technology is not a do-it-yourself field for many employers.
Conclusion
Killer use cases will be crucial for mainstream adoption of blockchain technology. They must remove pain points and friction while creating a better user experience. Almost everyone works for someone (even if it is for themselves), so the workplace provides fertile ground for the development of transformative use cases.
That said, employers considering whether to implement a blockchain solution should consider their business needs against the benefits offered by blockchain technology. Before taking the leap, carefully consider whether it makes sense for your business to adopt a blockchain solution with a combination of core business personnel, legal counsel familiar with these issues, and individuals or entities who have a comprehensive understanding of the technical the aspects of implementing blockchain for business. utility cases.
We will continue to monitor developments in this area, so make sure you subscribe to Fisher Phillips’ Insight System to get the most up-to-date information. If you have any questions, please contact your Fisher Phillips attorney, the authors of this Insight, or any attorney in our Cryptocurrency and Blockchain Practice Group.
