UTILIZING BLOCKCHAIN AND SMART CONTRACTS TO ENHANCE TRANSPARENCY AND EFFICIENCY IN HUMAN RESOURCES MANAGEMENT PROCESSES: A CONCEPTUAL APPROACH

Abstract

Combining the principles of the blockchain and smart contracts with the human resources management framework can be viewed as a chance for further advancement of organisational transparency and performance. This approach looks at how the characteristics of blockchain require decentralisation and immutability to help solve common HRM issues, including data accuracy, recruitment and payroll issues. For instance, using smart contracts, some of the human resource operational processes can be transacted only when specific contractual conditions are met, hence leaving out any middlemen and reducing corruption cases. Additionally, using blockchain in the HRM will make it easy to provide verifiable employee details, efficient management of human capital, and accreditation of performance management systems. Ensuring the existence of an accurate and immutable employee register strengthens the shareholders' confidence; the improvement of business decisions based on the data provided by the HR department meets the increasing trend for HR data transfers. It is, therefore, believed that if organisations continue to implement digital solutions, blockchain has the potential to grow as the premier option for enhancing engagement and performance as an element of HRM. This study, therefore, seeks to establish a literature review on how blockchain and smart contracts could be applied in HRM and the consequential recommendation for future research and practice. Extending from the comprehensive literature review of the current state of HRM technologies, this study aims to develop a framework regarding how these technologies can be utilised to foster increased transparency, efficiency and equity in strategically managing people resources.