Blockchain or distributed ledger is a system to store data in blocks connected with each other without any centralized administrator. But, how can it help in employee background verification?

It’s becoming increasingly important for organizations to maintain the safety and competency of their human resources as their workforce evolves by hiring more freelancers. The recruiting process for freelancers is easier and faster than for permanent staff. Many businesses don’t even have a documented recruiting procedure in place for hiring and managing freelancers. However, as more workers are employed as freelancers, the chance of avoiding the background check increases. 

With more unidentified persons having access to sensitive data, financial assets, corporate knowledge, and customer records, it’s more important than ever to protect businesses and their customers against data breaches and fraud. Employees are the face of the firm for many companies and online startups. A cab driver or delivery person’s behavior, for example, has a direct influence on the public image of the company they work for. 

As a result, putting money into a solid background check programme has become critical. 

Traditional Background Verification's Challenges

Traditional verification services providers are also encountering significant issues in performing faultless inspections owing to a lack of reliable data. 

Accuracy of data on education credentials, employment experience, and even police verification has become a significant concern. And, on occasion, due to intrinsic obstacles in the process, freelancer data is not accessible in a timely manner. Despite these obstacles, huge firms spend anywhere from $1.5 million to $2 million on the personnel background check procedure. However, owing to financial constraints, small businesses cut corners and do not always complete the strict background check process. 

Several organizations do two or three background checks. The entire procedure takes weeks and a significant amount of money. This results in a delayed onboarding process and a negative impact on the company’s bottom line. 

How can Blockchain-Based Employee Verification Benefit Companies?

A blockchain, or distributed ledger, is a system for storing large amounts of data in blocks that are linked to each other without the need for a single administrator. Every new addition is verified by all of the nodes on the blockchain. 

What role does it play in employee background checks?

You can reorganize an employee’s whole CV by saving each experience and certification milestone as a separate block. This is how it will help: 

These advantages can help recruiting managers save time and money. Furthermore, owing to a lack of resources or time, the HR teams will not bypass any background checks. 

Time for blockchain-based employee verification to go mainstream?

Multiple issues in the recruiting process can be solved with an automated and distributed blockchain-enabled employee background verification. 

Employers will be able to hire high-quality employees in less time and for less money if blockchain-enabled employee background verification becomes more widely used. 

What is in store for Freelancers/Gig Workers?

Here’s how it can assist:

Conclusion

Working remotely will become more popular in the coming years as more companies embrace digital transformation. More professionals will work in the gig economy as a result of the goal to “do what you love.” At scale, using a blockchain-enabled employee background verification system can assist freelancers and employees in working in a safe and secure environment. 

How can MIMO help?

Here at MIMO, we are aware of the high levels of transparency, complex legislation, and laws that the financial sector and other industries must adhere to and comply with. MIMO offers all-inclusive background check services with a focus on protection to provide you with the most reliable and up-to-date details. 

With the latest technology in operation, MIMO’s background screening services can be used to perform verification quickly and easily by organizations. Companies need to send a request to MIMO for a background check and they can receive all relevant records without delay. This will help you save a lot of time, which you can then utilize for more productive tasks.