Point of View 3: The Future of Hiring and Recruitment in the Decentralized Economy

The future of hiring and recruitment in the decentralized economy is a thrilling and sensational anticipation. With the rise of blockchain technology, the expectation on the way we hire and recruit employees is changing drastically.

This article will focus on highlighting the key points that will deeply elucidate the on-going phenomenon: the differences between centralized and decentralized methods in hiring and recruitment, what the future will look like when the concept is fully implemented, the advantages and potential challenges that come with it.

This post has been written by our community member from Discord. All content published without any modifications.

OptriSpace Team

First before I proceed, here is a brief introduction about the author: My Name is Trinh Khahn from Singapore in Southeast Asia, I’m a graduate of Design and Media from Singapore institutes of technology, a copywriter, forex and crypto trader. I have few articles to my credit published on Medium platform.

Right from the origin of the internet and technologies which has brought about massive evolution on the modus operandi of virtually all the aspects of humanity, recruitment and hiring not being excluded on this list has also witnessed its own drastic change which is different from the traditional way of mobilizing workers and freelancers. Therefore, the decentralized approach of the internet is making sure the way workers and freelancers find and deliver works are completely changed and rebuilt in such a way that they can easily work from home and get paid without any third party intermediary.

What the future will look like when hiring and recruitment is fully decentralized

The number one priority of technology has always been to simplify every aspect of human endeavour. Therefore decentralized technology on its own has been invented to do so in all areas of its applications, hiring and recruitment not withstanding. Decentralization has been perceived to be a step towards true transcendence and meritocracy.

In the decentralized economy, hiring and recruitment will no longer follow the rigorous traditional process. The elimination of a third-party intermediary, reduction in the cost of hiring and recruitment process, Employers no longer being limited to only workers in their local area will be all possible when hiring and recruitment is fully decentralized. This system also encourage the proposition of work from home situation thereby ensuring more safety and convenient work environment for employees. Therefore this aspect of technology has really make our lives easier. People no longer risk their lives in travelling a long distance journey for work purposes. Imagine how stressful and expensive it will be for someone living in Singapore to travel to the United States just to do a job for a company there. Doesn’t it sound ridiculous?

Perhaps, this is portraying that We are gradually evolving towards a world where neither employer or employee need to know each other before striking a deal. And this is possible through The utility of smart contracts. An employer can post a job through a smart contract with a payment withheld until both the worker and the employer concur that the job has been satisfactorily completed. Though there may be little shortcomings to this approach yet to be straighten out, but the usefulness of payment being delivered immediately upon mutual agreement of job completion should not be de-emphasized. More so, the malicious activities of hackers and bad actors to have unwarranted access will be drastically reduced.

The differences between centralized and decentralized methods in hiring and recruitment

The internet is gradually moving away from the use of centralized ledger system to distributed ledger system. The centralized system comprised of a ledger which is like a central repository where data is stored and hosted on a centralized server controlled by certain authorities or entities who can easily have access to the data on the hosted server. Banks make use of this system in storing and managing customers funds and assets.

Examples of centralized applications include: facebook, twitter, netflix and so on. Where as the the decentralized system on the other hand is a more transparent, trustworthy, evolving and more recent technology that is not controlled by a hosted central server rather data is stored and controlled by a distributed system approach. Examples include: uniswap, pancake swap, openSea and so on.

Therefore, the traditional hiring and recruitment method mostly make use of the centralized system to find workers and freelancers and this involves recruitment through the use of  direct advertisements, bulletin boards, Internship and apprenticeship, recruitment events, recruitment agencies, employee referrals, talent pool databases and so on. Where as distributed systems create a platform where workers and freelancers will find it easier to find work and clients. This system and its corresponding technology is designed to eliminate intermediaries such as agencies and similar factors out of  workforce and freelance industry.

Advantages of Decentralized hiring and recruitment

Decentralized hiring and recruitment offers a number of advantages over traditional methods.

For one, it eliminates the need for a centralized authority to oversee the process. This means that employers can hire and recruit employees without having to go through a third-party. Additionally, decentralized hiring and recruitment allows employers to access a larger pool of potential candidates, as they are no longer limited to their local area. This can be especially beneficial for companies looking to hire remote workers or those with specialized skills.

Furthermore, decentralized hiring and recruitment can help reduce costs associated with the hiring process, as employers no longer have to pay for expensive recruitment agencies or job boards. where as working from home on the other hand ensures a level of worker’s safety and convenience. However, due to its decentralized nature, it is difficult for bad and malicious actors to gain access and transfer funds meant to pay workers at the completion of their jobs unlike the centralized system ( e.g. banks ) where the central authorities or entities overseeing the transactions can have the power to tamper or meddle  with the transaction funds.

Potential Challenges of Decentralized Hiring and Recruitment

Although decentralized hiring and recruitment offers many advantages, there are also potential challenges that come with it.

For one, employers may find it difficult to verify the qualifications of potential candidates. Without a centralized authority to verify credentials, employers may be left to their own devices when it comes to ensuring that candidates are qualified for the job.

Additionally, decentralized hiring and recruitment can be time-consuming, as employers must manually search through a large pool of potential candidates. furthermore, decentralized hiring and recruitment can be risky, as employers may not have access to the same level of legal protection that they would have with a traditional hiring process.

Finally, the technology may be too rigid and technical for users to navigate. Thereby limiting it only to those that have a higher level of technical know how.

Conclusion

In conclusion, decentralized hiring and recruitment offers many advantages over traditional methods, but also comes with potential challenges. Employers must weigh the pros and cons carefully before deciding whether or not to pursue this approach. With the right strategies in place, however, decentralized hiring and recruitment has been seen to be a powerful tool for finding the right candidates for any job. On the side of the employee, decentralized method of hiring and recruitment has made it easier in both meeting clients and delivering client’s job  in a more secured and convenient atmosphere.

Author: Trính Khánh

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