Blockchain Technology in HR: Enhancing Transparency and Security in Employee Data Management
Prabakaran Paranthaman, V Senthil Kumaran, V. Vijayalakshmi, Shibe Rimo · 2024
Traditional Human Resources (HR) systems, which are dependent on centralized databases, have problems with data manipulation, illegal access, and inefficiencies resulting from numerous middlemen and manual processes. These systems are susceptible to data breaches because these frequently experience single points of failure. The research proposes a blockchain-based HR system that uses smart contracts and an immutable, decentralized ledger to manage HR processes like performance reviews and payroll. The system aims to address these issues. The comparative analysis's results demonstrate that the proposed system lowers data breaches to two incidents from 15 and 8 in the existing systems, shortens payroll processing time from 24 to 8 hours, and saves administrative costs to $4,000 from $10,000 and $6,000 in the existing systems. if, the proposed approach performs slightly lower than the best-performing existing systems in terms of GDPR compliance and transparency, but it still delivers a lot of security, efficiency, and cost-effectiveness gains.