• +91-9754677445
  • 457 Mott Street,NY 10013
  • 24 X 7

Smart contracts are you using them

Onboarding a new hire starts once the talent officially commits. However, the era of paper documents is coming to an end.

In the workplace of the future, smart contracts are poised to replace the conventional paper-based contracts, along with the labor-intensive tasks that demand HR’s constant attention, as automation takes over.

What exactly is a smart contract?

Smart contracts are agreements that are based on blockchain technology and outline the terms and consequences of a transaction or series of transactions. (In contrast, a blockchain is a digital ledger that records transactions using code.)

Smart contracts are designed to automatically carry out the rules and penalties specified in the agreement. This simplifies the process for HR and business leaders, as well as employees, to fulfill their responsibilities and adhere to policies and regulations.

Smart contracts go beyond traditional contracts by automatically enforcing the terms specified in them, eliminating the need for manual oversight.

The system operates on a logic of “If this, Then that.”
For instance, if an employee fulfills the necessary weekly work hours as documented in the ledger (blockchain), they will receive their rightful payment automatically via a unified exchange system.

Payment can be made through cryptocurrency on the same blockchain, thereby bypassing the involvement of traditional financial institutions and streamlining the process of transferring funds to employees.

Furthermore, blockchains meticulously record every transaction, ensuring that the exchange between parties is fully documented and transparent to all individuals with access to the ledger.

Another instance is when new employees are requested to provide necessary documentation or undergo security clearance prior to being granted additional access to IT systems or office premises. After the task is finished, the smart contract promptly provides them with access, activates their tools, and documents the transaction.

What are the benefits of HR using smart contracts?

An automated contract simplifies work by eliminating the need for constant communication between teams. It is essential for companies to accurately and clearly program the rules into the blockchain to ensure seamless execution of commands.

Managing onboarding can be efficiently handled by incorporating actions into a smart contract. This allows for seamless coordination between the new employee, HR, IT, security, finance, and legal departments.

Without it, HR teams would be responsible for handling a majority of the tasks involved in onboarding a new employee – clarifying contract terms, verifying signed documents, and granting necessary permissions.