Blockchain or distributed ledger technology brings unparalleled transparency, security, and accountability to data and process management. So, what is its impact on HR? Find out in our roundup of ten promising blockchain-HR startups in 2020.
Distributed ledger technology – better known as blockchain – has applications in myriad industries, including HR. Gartner estimates that by 2022, over 40% of large companies will begin using an HR solution powered by emerging technologies such as AI and blockchain.
In the last few years in human resources, blockchain has overcome the hype and moved toward on-ground implementation. There are now several blockchain-based HR startups using this technology to solve key questions around people management.
The popularity of blockchain can be attributed to its function-agnostic capabilities. It creates a secure, transparent chain of computing nodes that can store any type of data and record transactions.
Expectedly, blockchain’s application in HR ranges from payroll and employee verification to more unexpected use cases such as workplace harassment reporting and employee safety.
Learn More: HR Is the Next Obvious Turn on the Blockchain Highway
10 Blockchain-Based HR Startups to Watch Out For in 2020
Blockchain first entered mainstream vocabulary when Bitcoin became popular – a cryptocurrency that uses distributed ledger technology instead of traditional currencies. Since then, it has diversified into a variety of applications, impacting HR and workplace management models across the world.
Here are ten startups using blockchain to revolutionize HR and solve key issues:
1. Beowulf: Streamlining workplace communication
This 2019 startup is using a decentralized cloud network to simplify internal communications in a variety of workplace scenarios. Its solutions cover privacy-controlled corporate communication, distance learning, healthcare for remote workers, and ready-to-use software development kits (SDKs) for specific communication features. The company even has its own operating system to transform how digital workplaces operate.
Despite having been in the market for such a short time, it has several well-known customers, including Vietnam’s University of Science, Asian Life Insurance Group (AIA), and U.S.-based cybersecurity company, OPSWAT.
2. The BeSure Network: Validating workplace safety protocol
BeSure Network is a 2017 startup that aims to eliminate instances of unverified employees working in dangerous/hazardous environments. Its blockchain solution extracts auditable safety and compliance data from different sources, strengthening a company’s workplace safety stance. Data can be securely accessed by managers (for example, factory floor supervisors), employees, and regulatory bodies.
BeSure Network offers features like smart contracts and automated data entry to make it easier to keep your workplace safe. The platform was ready for release last year and is currently under beta testing with support from U.K.-based safety organizations.
3. Etch: Enabling instant payroll
Founded in 2017, Etch offers a blockchain-based payroll solution that allows employees to receive payments at any time they choose. Money is credited in the form of Etch tokens that are stored in a digital wallet. The token value is stabilized by the funds an employer assigns, and employees can use their Etch card to spend money across millions of locations in the world.
Etch dramatically cuts down the administrative cost and effort required to manage payroll. The solution was first launched in the U.K. with the U.S. and Asia also on the cards. Last year, the company partnered with Atos to roll out blockchain-based payroll for Atos customers.
4. eXo Platform: Disrupting employee rewards and recognition
Started in 2003, eXo Platform isn’t technically a startup – but it has recently ramped up its blockchain investments and uses distributed ledger technology in its rewards and recognition module. eXo includes features for communication, collaboration, employee empowerment, and rewards, all built on a foundation of open-source technology.
eXo is characterized by a high degree of interoperability, which is particularly useful if you have access to technical talent internally. Expectedly, eXo caters to leading organizations such as UCLA and HSBC Bank, given its status as an HR technology veteran.
5. Gospel Technology: Transforming human resource information systems (HRIS)
Gospel Technology has been around since 2016 and was named among the “20 Most Promising Blockchain Technology Solution Providers – 2017” by CIO Review. While Gospel’s data platform can be deployed in any business scenario, we believe that it is particularly relevant for HRIS. It allows users to share sensitive data with internal users and external stakeholders while retaining control, thereby ensuring that employee data rights are maintained.
Gospel creates a single source of truth using distributed ledger technology and can be integrated with SAP, Salesforce, and OutSystems interfaces. It is available for download on the Google Cloud marketplace.
What is HRIS? System, Model and Application
6. Job.com: Disrupting the recruitment industry
Despite its 20-year old legacy, Job.com recently came out in a brand-new avatar, leveraging AI and blockchain to match job seekers with the right company.
Instead of the standard 20% commission, employers pay only 7% of a candidate’s annual salary when they sign up on Job.com. And 5% of this is immediately sent to the candidate as a signing reward. All of these transactions are powered by blockchain.
Job.com offers integration with JazzHR, SAP SuccessFactors, GreenHouse, and the like.
7. Lympo: Democratizing employee wellness data
Lympo is a healthcare and employee wellness platform founded in 2016. It builds an end-to-end data sharing ecosystem linked to wearables and other data sources. Based on the user’s fitness behavior, they receive a blockchain-based reward/incentive. In other words, it monetizes health and fitness data using their proprietary token to improve workforce well-being while also enabling smarter business decisions.
Lympo’s solution has several components, including a health and wellness wallet, employee incentivization, a wellness marketplace, and crowdfunding for healthcare startups. Its HR solution, specifically, is available for a free trial.
8. Peoplewave: Pioneering employee relationship management (ERM)
This 2016 startup has several solutions under its belt, but we were particularly interested in its newest innovation – Wavebase. Wavebase leverages the power of blockchain to streamline candidate sourcing, selection, and screening. Interestingly, this goes beyond basic background verification, as recruiters can search for candidates based on past performance, job titles, hard skills, and more.
Wavebase fits seamlessly into Peoplewave’s larger solution for ERM, creating a single source of employee data from recruitment to employee engagement and performance management. Currently, Asia is its focus area, with a sizable presence in Australia as well.
9. Vault Platform: Making workplace harassment reporting more transparent
Vault was established in 2017 to offer employees a safe place where they could record and resolve misconduct securely. It uses blockchain to attach a permanent time stamp on data records, creating an accurate timeline of events. This speeds up the investigation of workplace harassment, providing employees with a resolution as fast as possible.
Vault also includes advanced analytics that gives HR insights into the state of its work culture. The Vault app can be downloaded on Google Play as well as the Apple app store.
10. WurkNow: Advancing careers for the blue-collar workforce
WurkNow is a 2018 blockchain-based HR startup geared to transform the blue-collar job seeker’s experience. It has four modules, for staffing, agencies, HR, time and labor management, and compliance. Blockchain plays a particularly important role in the compliance module, maintaining a consolidated set of data records from workers’ drug-testing records to performance reviews, which fosters trust and transparency.
With WurkNow, employers have easy access to prevalidated onboarding documents and any case of labor violation, simplifying the blue-collar hiring experience. The solution is now available for a demo.
Learn More: 3 Benefits of Blockchain-Based Pension Solutions and Use-cases
Looking Forward to Another Year of Exciting Blockchain Innovation in HR
These are exciting times for HR technology startups. Emerging ideas like blockchain, AI, and advanced analytics are transforming people process management. Blockchain, specifically, is now well out of incubation – ready to be implemented in real-world scenarios. These are ten of the most promising blockchain-HR startups out there, and we can expect many more to come up in 2020 and beyond.
Which use case, according to you, should be most critical for blockchain-based startups in HR? Tell us on Facebook, LinkedIn, or Twitter. We’d love to hear more about your thoughts!