Web3: How it's Changing HR

In today's workplaces, you'll find people from different age groups, each with their own values, expectations, and experiences. Shrusti Shrisat, Senior Head HR at @bitsCrunch, excels in leadership development, organizational transformation, talent acquisition, and a spectrum of HR functions, ensuring compliance and excellence across various domains.

Web3 in HR

The way companies manage HR is changing, and Web 3.0 is a big part of that change. This new version of the web will make hiring people easier and more efficient.

In the future, when you apply for a job, you can use a digital profile that includes all your qualifications, skills, and work history. This digital profile is like an unchangeable record that proves you're qualified for the job. Companies will use smart contracts and decentralized platforms to connect job seekers with employers. It's a faster and cheaper way to find the right match.

As technology improves, more HR professionals will start using Web 3.0 in their strategies. Let's understand what Web 3.0 is and think about how it might change how HR works.

Evolution of Web 3

First, we had Web1, which was like personal web pages hosted on the internet. Then came Web2, making things more interactive with user-generated content, social media, and blogs.

Now, we have Web3, the newest version. It's a big change because it's like an online world that uses blockchain technology.

Unlike before, where one person or company owned the information, in Web3, everyone shared it. It's like a community where no one person is in charge and everyone works together.

Recruiting in Web3

The main idea of decentralization is to cut out the middleman in business dealings, like recruitment agencies in HR. This helps to be more open and have a workforce spread out.

Now, companies can skip using recruiting agencies and talk directly to potential employees. They have control over the whole hiring process and can decide how much money they want to spend on getting new workers instead of paying a fixed fee or a percentage to agencies.

In Web3, there are different ways for companies to find candidates directly. It's not just about traditional job boards. There are bounty platforms where companies can offer rewards to anyone who refers a good candidate.

You only get paid if the person you referred gets hired. There are also special job boards on Web3 and in communities where companies and candidates connect.

Transforming HR Practices with the Adoption of Web3

Human Resources can sometimes face problems like too much paperwork, doing the same work over and over, mistakes in data, and not using resources well. But now, new technologies are changing how HR works, and HR leaders can fix many of these issues without needing extra help.

Here's how Web 3 can give HR a makeover:

• Finding the Right People

A company's success depends a lot on getting and keeping talented people. With Web 3.0 and AI-based tools, companies worldwide are using technology to find the right talent with specific skills. AI helps make the hiring process smoother and lets recruiters make fair and smart decisions.

According to a study, about 82% of HR professionals think that more AI tools will be used in hiring over the next 5 years. Finding the best person for a job involves a lot of data, and AI can make it more efficient by getting more value from all that information.

• Managing Payroll

Taking care of payroll is a big task for any company. It involves a lot of manual work and is prone to mistakes, with changes happening all the time due to tax rules, staff changes, bonuses, and more. But now, tech tools in HR are making this process smoother.

Automation and AI tools are fixing these issues and making data management smarter. By using APIs, companies can easily transfer data between different systems, saving a lot of time and resources.

• Helping Employees Do Better

Being able to adapt and change is crucial for a company to do well, especially with constant disruptions. Technology tools for managing employee performance play a big role here.

These tools focus on the employee, making things clear and transparent. Employees can see what's important, what their co-workers are working on, and how the company is doing overall.

• Clearer Communication

Blockchain technology makes communication super clear, making it easier to create a workplace where everyone is accountable. Imagine using smart contracts to make sure everyone in a business deal does what they promised. Blockchain keeps all the records straight.

Using decentralized platforms, cool technology, and direct connections between people also means we can have better and faster communication and teamwork among employees and teams, whether they're close by or far away.

• Improved Data Safety

Blockchain technology makes things super safe and private when it comes to important work information. It boosts cybersecurity by making sure that sensitive data in the workplace stays secure and is less susceptible to tricks or fraud. Instead of keeping data in one central place, blockchain spreads it out on a decentralized network, making sure the information stays reliable. This way, if one part fails, it doesn't bring down the whole system, making it stronger against problems or technical issues.

When will HR pros start using Web 3.0?

Web 3.0 can really change how HR works. It uses cool things like blockchain and smart contracts to make HR decisions more open, safe, and independent. This can make hiring and other HR tasks easier. As the technology gets better, more HR folks will probably start using Web 3.0 in their plans.

Like with any new technology, not everyone starts using it at the same speed. But with Web 3.0, it might catch on faster because of how it works. Just like how everyone ended up using the internet, Web 3.0 adoption could become a must for everyone, especially in the basics. It's like, once you try it, you might find it hard not to use it.

Challenges of Using AI and Web 3 in HR

• Unconscious Bias in Algorithms:

  • Problem: The technology might unknowingly favor certain traits or skills, leading to a lack of diversity in the candidate pool.

  • Why: The smart contract focuses on qualifications but may not catch bias in the data or algorithm design.

  • Impact: Businesses need to work hard to ensure fairness and diversity.

• Job Loss:

  • Problem: Automation of HR tasks through AI and web technology could lead to job cuts, especially for those with lower skills.

  • Why: As per estimates, many jobs may be replaced by automation by 2030, requiring a large number of people to switch careers.

  • Impact: HR departments and the workforce at large may face significant changes and displacement.

Moving Ahead

The future of work is changing big time. We'll see shifts in pay, benefits, privacy, and health at work. Learning new things will be crucial. As technology gets cooler, both individuals and companies must keep up to stay competitive in this fast-changing work world. And Web3, the new internet version, will add extra flair to how we connect and work together. It's not just about jobs; it's about using awesome tech like Web3 to make work awesome.