How Blockchain can help the Recruitment Industry

The recruitment process has a number of problems. Lets take a look at some of these problems and see how a blockchain based solution such as HireStar can help solve them.

The Problem: Mis-Representation or Fake profiles
There are many sources for a recruiter to get potential candidates; such as, Job Portals, Staffing agencies, References and Social Media such as LinkedIn. Per the findings of a survey from LendEDU https://lendedu.com/blog/drawbacks-deceptions-linkedin/ staggering 34% of respondents were found to lie to some degree on their Linkedin profile or which over 55% said that they lied about their “Skills”. While Education and Work Experience can easily be validated by a phone call, a skill verification is not easy and might need some test.

HireStar Solution:
We validate the skills in two phases
a) Phase 1: Skill Test
We conduct a short online skill test to check the candidate level. All questions are sourced from our blockchain based question repository that is endorsed by various Subject Matter Experts. These tests are for initial screening to filter out candidates who have no skills.
b) Phase 2: Skill interview with an SME (Subject Matter expert)
If the candidate clears the skill test, he/she will be interviewed by a Subject Matter Expert on the blockchain through a video call. The video call is recorded and stored for future reference. The interview results are captured on blockchain that can not be tampered. HireStar platform employs AI to pair an SME to the candidate and ensure that they have no mutual interest and are stranger to each other.

The Problem: Reliance on third parties for Past Employment & Educational degree Verification
Often companies contract third party vendors for background verification. Given millennials’ frequent job-hopping tendencies and the gig economy, background verification becoming more complex and time-consuming. Per SHRM survey, time to fill a position is average 36 days
Each time the candidate hops a job, the entire background check processes are repeated.
As organizations strive for improved efficiencies in the recruitment process, ensuring a quick, reliable and cost-effective screening process is essential. Blockchain could help recruitment teams strike a balance between speed and accuracy while helping contain costs.

HireStar Solution
Past Employment Verification
The hireStar network employers, can easily verify their ex-employee’s on the platform and the record get stored on blockchain. Once its on blockchain it is permanent and the same record can just be checked when candidate hops job again.
For non network employers, we will verify the experience in presence of a random endorser (which could be any company on the network) to build trust.

Why should employers give this data to us?
There is no “us” in a decentralized blockchain environment. The platform does do not demand any personal information beyond name of the employee, his/her dates of employment, designation and reason for separation. No other details are needed and everything else is hashed and encrypted. Just as a company will do a verification for its ex-employee they will also request verification from another company for their new-joiners. Thus they consume each others data within acceptable boundaries.

Degree Verification
The hireStar network Universities can easily verify their alumni degree certificates on the platform. Once a degree certificate is verified a record is created and stored on blockchain that can be referred back anytime later in future. The Universities get paid for each verification they process.
For non network universities, we will verify the experience in presence of a random endorser (which could be any company on the network) to build trust.

Problem: Data Privacy and Security
Its a fact that most job portals sell their candidate data and the benefits do not even reach the candidate whose data they have.

HireStar Solution: No more of this practice. Your utmost personal data will be available to only those that you choose to share with. You have all the controls on who can see you and who cannot. The data is stored using the latest encryption technologies available on blockchain. Also, we use Hyperledger which is not a public blockchain. Read more about Hyperledger here.