How blockchain can improve credentialing efforts for job candidates

Verifying job applicant credentials and maintaining employee career records can be time-consuming, error-prone, and fragmented across different systems and departments.

To address these challenges, a growing number of organizations are investigating how blockchain technology can help via Velocity Network Foundationa non-profit membership organization.

The foundation’s members include Society for Human Resource Management (SHRM), Aon, Korn Ferry, Randstad, SAP and UKG and more.

Supporters believe the use of blockchain in the work and HR area is a game-changer that will reinvent how job credentials are shared between individuals and organizations.

They say blockchain will help recruiters and employers verify candidate credentials through a platform that is secure and reduces the likelihood of credentials, such as education or work experience, being forged or altered.

“Technology allows us to tackle these issues head-on,” Dror Gurevich, founder and CEO of the Velocity Network Foundation, told Legal Dive in an interview.

Guillermo Corea, CEO of SHRMLabs, said in an interview that Velocity’s technology will “revolutionize the workplace.”

What is Velocity Network?

The Velocity Network is a decentralized, blockchain-based system that allows individuals to own and control their education and career records, while allowing employers and others to access and verify the information.

Blockchain stores data in a secure and decentralized manner over a network of computers.

Each block in the chain contains a number of transactions, and each block is linked to the previous block through a cryptographic hash function. This creates a continuous chain of blocks, hence the name “blockchain.”

Because the ledger is distributed over a network of computers, there is no single point of failure or central authority controlling the system.

Transactions are verified and recorded by a network of independent servers that store a copy of the data. Each participant in the network has a copy of the entire blockchain, which is updated in real time.

The network allows individuals to store information on digital wallets and share the information with potential employers and other parties.

The credential is issued to individuals by schools, former employers and credentialing or licensing organisations.

Eliminates silos

Currently, applicant credential information is “siloed,” and independent services verify the information on an ad-hoc basis, said Alex Chudnovsky, vice president, product strategy for SAP.

Using Velocity Network, employees control the data and decide who can access the information.

“Once the individual shares their credentials with a specific third party, that third party can access the blockchain, retrieve the verification key, and verify credentials,” Gurevich said.

Meanwhile, when an employee upgrades or moves to a new employer, this information, including the verification, can be made available through the network.

“The individual can set up the connection to an employer with whom they have shared their identification, so that this employer will be notified of any change or addition to the identification,” Gurevich said.

In addition, When an employee moves to new jobs, including in other countries, the worker can carry the already verified credentials with them, Corea said.

The Velocity platform is free and publicly available to individuals, but other users must pay a fee. The costs will be much lower than the processes that are in place today, Gurevich so.

What is it for employers?

Blockchain technology is expected to significantly reduce the administrative burden for employers.

“The three big value propositions that Velocity provides are reducing cost of hire, reducing time to hire and increasing quality of hire,” according to Deb Everhart, chief strategy officer for Credential Engine.

The recruitment process is streamlined because the job candidate’s credentials are already stored privately in the individual’s wallet.

Once a credential such as a degree is earned, it is verified and goes on the blockchain and does not need to be verified again.

Easily accessible digital credentials allow employers to make faster hiring decisions, an important factor when an organization is hiring for a highly skilled role, Corea so.

Corea noted that a background check can take weeks. “There is a period of time where the candidate could potentially be hired by another company,” he said.

If the background information is in the blockchain and verified, employers do not need to conduct a lengthy background check.