More than just the topic du jour, blockchains are quickly becoming the most popular technological asset for business operations. They have been tested in a wide range of activities, including real estate contracts, eCommerce marketplaces, secure voting and digital publishing. One area that also shows great potential is in the field of Human Resources (HR) management, and successful businessman Jose Duarte has already begun making the leap forward.
Originally developed as the accounting method for the cryptocurrency Bitcoin, blockchains – which use what’s known as distributed ledger technology (DLT) – now appear in a wide range of commercial applications. The technology is used primarily to verify transactions, though it is possible to digitize, code and insert practically any document into the blockchain. Doing so creates an indelible record that cannot be deleted, altered, lost or changed. Additionally, the authenticity of the transaction can be verified by the entire community on the blockchain, instead of relying on a single authority.
Duarte explains that there are five key areas to HR that can benefit greatly with the use of blockchains as a foundation. “As I began to explore deeply into what blockchains were a couple of years ago,” he explains, “I understood the impact that they could have in helping manage various aspects of my businesses. I wasn’t ready to move forward then, preferring to wait until the technology matured while I prepared the back-end operations.”
The first area is the back-office. Using blockchain technology, back-office functions like reconciliation and providing purchase orders can be eliminated. This will free time needed to complete administrative transactions which, at the same time, affords more time to concentrate on other, more important issues including advanced employee training.
Hiring processes can also become more effective when the blockchain technology is applied. The repository contains comprehensive, trusted data that details candidates’ education, skills, training and performance. In addition to helping the hiring manager find the most qualified candidate, it also helps the employee to showcase his or her skills.
One of the most important concerns in business is with productivity. Tied closely to the previous example, blockchain technology helps recruiters find the best match to fill a role. This is particularly helpful for small and medium-sized companies that typically have a smaller staff pool to adequately sort through job candidates.
One of the biggest benefits to blockchains is that they know no boundaries. They’re not tied to any system and the ability to create a blockchain also comes with the ability for a business to create its own cryptocurrency. This currency can be used to send and receive digital payments, which can then easily be exchanged for fiat. Says Duarte, “A lot of what I do involves working with people in different geographic locations around the world. The ability to possibly offer a way for us to do business and make financial payments in an instant holds great appeal to me.”
There is a lot of sensitive data managed by HR departments. Any unsecured system is subject to compromise, which can cost a company millions of dollars in losses, as well as a loss of confidence on the part of its partners. Blockchains, by nature, are virtually impenetrable to outside attacks, and even access by employees is controlled to a larger degree, preventing the chances of internal fraud or identity theft.
Duarte has been leading businesses in Costa Rica and abroad for more than 20 years. He launched his first endeavor before he was 20 years old in Heredia, Costa Rica, and has since branched out to become a successful and respectable member of the business community. He is an expert on eCommerce and contract negotiations, and is currently involved in a software startup in Costa Rica. He is also a partner and Commercial Director of DLB Group Worldwide, an international marketing company headquartered in Venezuela. It maintains an office in Mexico and, through Duarte, Costa Rica. Duarte was sought out directly for his advanced entrepreneurial and marketing expertise by the founder of DLB, Larry Hernandez. With his assistance, DLB has secured million-dollar contracts with companies such as Subway, Bridgestone, Audi and DHL.