We have been conducting surveys on organizations about blockchain technology in HR functions. And, 40% of them showed interest and considered implementing it. 

Now, what is blockchain technology? 

In a layman’s language, blockchain technology runs on a network of distributed digital ledgers or vaults that allow transactions, including financial ones, across each other – without an intermediary. 

These transactions are verified and recorded, making it virtually impossible for anyone to tamper with the information. 

That means individuals who don’t already know each other can share data and conduct transactions based on trust, privacy, security, data integrity, and transparency. 

How The Blockchain Technology Benefits HR Functions? 

Our conversations with leaders of these organizations show that they believe blockchain technology could automate and speed the steps of verifying employees’ credentials: saving recruiters from contacting multiple sources to confirm historical – yet credible – information and could improve time-to-hire. 

The adoption of the technology in HR functions may be low now. But the applications are increasingly dominant in financial management, which overlaps with HR in areas such as payroll. 

To help understand the benefits, we have curated a few use cases of blockchain technology for people in HR. Here’s how they play out- 

  • Payroll
  • Recruitment 
  • Employee data protection 
  • Contract management 
  • Open system 


It’s good to note that blockchain technology in payroll is a strong use case. 

A blockchain payroll system can overcome local regulations and IT security schemes in traditional electronic payments. It can help streamline the payroll process by automating and securing payments to employees – be it full-time, contractors, vendors, and even gig-workers. 

If you are still wondering how that helps, here’s a fun fact: ADP, one of the biggest payroll providers, has a blockchain application in development. 


Blockchain technology allows individuals to tokenize their identity and provide virtual credentials, such as college certificates, resumes, identity documents, and employment records. None can tamper with these records. 

Now, chasing down and securely transmitting documentation is a big part of a recruiter’s workload. We believe that blockchain technology will significantly streamline this hectic process of HR. 

Further, it could cut off the expense where organizations hire agencies to perform background checks and verify employee information. 

Employee Data 

A blockchain network empowers anyone to store encrypted personal information. Any data in this network is immutable and runs on a secure governance system. 

In short, blockchain acts as the database of records and a reliable repository of past information for any employee data.

Contract Management 

Blockchain enables the use of smart contracts. Smart contracts can transform paper contracts into immutable and transparent digital agreements. In brief, they act as an agreement governing the rules among different parties using the network. 

Imagine an employee applying for a loan that follows a hectic external verification. Sharing the information by an employer is not permitted unless the candidate allows it, and vice versa. That’s where a smart contract helps. It allows sharing the information that is required for the loan application process. In this way, both the employer and employees are saved from exposing unwanted data to a third-party aggregator. 

Open System 

While the world believes that blockchain is destined to be implemented in HR functions, we see how it helps create an open system among the parties in the network. 

Blockchain network allows candidates to store their entire professional identity, including academic certificates, credentials, employment records. 

Now, they can provide access keys to employers who want the records and then repeal the keys when they leave the organization to maintain control over their records. The system allows data access across individuals and employers in the same network. 

This practice will enable HR to verify employee data within hours or even minutes rather than days, which would reduce costs and cycle times for processes like onboarding and recruiting. 

The bottom line

These use cases are strong enough to make us believe that blockchain has the potential to radically transform the HR function, touching everything from verifying employee credibility to their data security. 

Repute is working on building some of these solutions. And with these robust solutions, HR professionals are saving up to 90% of their time – from offer rollouts and background checks to employee profile creation in the portal – in a few clicks. 

The future of HR seems exciting as we brew more innovations with the power of blockchain technology – inevitably. 

Get to know more about how blockchain technology can help ease your workload and build trust among your employees. Again, we are just a click away!


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