Performance Evaluation of Blockchain-Based Human Resource Management Systems for Effective Organisational Performance Using Smart Contracts

Abstract

This study conducts a performance evaluation of a blockchain-based Human Resource Management System (HRMS) utilizing smart contracts to enhance organizational efficiency and scalability. Despite blockchain’s transformative potential through decentralization, transparency, and immutability, empirical research on its scalability for large-scale HRMS applications remains limited. This research addresses this gap by designing, implementing, and testing a blockchain-based HRMS prototype with a simulated dataset of 5000 users across five core HR modules: recruitment, employee management, payroll, leave, and exit/retirement. Leveraging the Ethereum development network, Solidity for smart contract development, and Hyperledger Caliper for performance benchmarking, the study evaluates transaction latency and throughput under escalating transaction loads (5 to 5000 transactions). Results demonstrate exceptional scalability, with consistently low average latency (0.07 - 2.11 seconds) and high throughput (2.4 - 78.1 TPS), affirming the system’s robustness for high-volume HR operations. The findings provide evidence-based insights and recommendations for designing scalable blockchain solutions, contributing to advanced HR practices and organizational performance optimization.