How Blockchain Will Make Clunky ATS Programs A Thing of the Past

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If you’ve ever gone on the job hunt, you’ve likely interacted with an ATS–Applicant Tracking System. These platforms help hirers post jobs, screen applicants, record interactions with candidates, run data analytics, and keep tabs on multiple recruitment venues–or at least, they theoretically help hirers carry out all those tasks. In practice, most ATS programs are cumbersome and impractical, leading many recruiters to use them for basic functions such as resume screening while carrying out much of the day-to-day work of recruiting in their email inboxes and private spreadsheets.

It doesn’t have to be this way. In fact, several recruiting startups are setting out to change the technology recruitment relies on, and thus, recruitment itself. Many of those startups are hinging their platforms on a blockchain, the same technology that supports Bitcoin and other cryptocurrencies. Blockchain’s decentralized transaction ledger, immutability, automation capabilities(thanks to smart contracts), and ability to hold value in an internal token economy makes it a useful tool for tackling complex, data-heavy tasks such as digital recruitment.

A new slew of blockchain-based recruiting tools are coming to replace–or at the very least, improve–the traditional ATS. Here are some ways blockchain could improve upon these clunky recruitment platforms:

Fraud-Proof Credentials

One of the blockchain’s standout qualities is its immutability. Every full-participant in a blockchain network maintains a complete copy of the network’s state. Therefore, it’s virtually impossible to erase or rewrite data published to the blockchain.

An unfortunate number of job applicants fudge the truth regarding their qualifications to get past an ATS. In the future, we could see more and more applicants applying to jobs with a blockchain CV. Services such as APPII will help applicants verify their blockchain credentials. These verified blockchain CVs would not only prove difficult to re-write disingenuously, but they would also be immune to the document loss that can occur when companies change systems. Because blockchain CVs would retain a users verified status regardless of how long ago they were verified, it is likely that ATS systems that work with blockchain resumes would see a significantly lower fraud rate.

Smarter Applicant Screening

Many ATS programs reject qualified candidates that don’t meet their predefined screening templates. An ATS might reject a candidate who uses resume formatting or font that the program struggles to read, or who uses the wrong synonym for a desired experience or skill. Blockchain-based resumes are universally accessible, so any blockchain-compatible ATS can read and understand their contents. A standardized skill-recording system in blockchain-verified credentials could even eliminate misinterpretation of common synonyms.

Automatization Through Smart Contracts

Many ATS platforms fail because the data they receive languishes in obscurity unless it leads directly to a hire. A company who likes a candidate but ultimately hires a different person for one position might start recruiting a year later for another job that is perfect for the rejected candidate. But unless the hirer or recruiter has a particularly good memory, that promising connection is lost.

Many blockchain protocols use smart contracts, which self-execute lines of code in certain predefined conditions. ATS programs that use smart contracts to interact with blockchain CVs and recruiting records could automate recruiting actions that would otherwise be burdensome or impossible in old-fashioned ATS programs. For example, a smart contract could alert a recruiter when a blockchain CV they received six months ago contains experience that makes that applicant a good candidate for a new opening.

Replacing ATS with Blockchain Platforms

For many recruiters, hiring managers, and candidates, ATS programs aren’t the main problem. They’re a symptom of much more pressing issues like information imbalances, out-of-whack incentives, and intermediaries adding little value to the job search process. Many employers and recruiters use ATS systems to (imperfectly) manage the flow of data rather than fundamentally change the quality and incentive structure of the data flow involved in recruiting.

BHIRED is a launching a blockchain platform that will make ATS programs a thing of the past. Candidates, recruiters, and hiring managers can interact in BHIRED using BHIRED utility tokens (BHD). These tokens incentivize good behavior, ensuring that data and activity on the platform are high-value and help everyone get what they want, whether they’re a recruiter looking to fill a position or a candidate searching for a job. Candidates can boost their rankings by adding relevant information to their profiles such as education, work history, and results from cognitive and technical skills tests. Recruiters pay tokens to click on profiles and earn them by contributing hiring data and candidate reviews. The ranking system ensures that high-performing users who are serious about getting a job (if they’re a candidate) or finding a candidate (if they’re a hiring manager or recruiter) are the most visible on the platform and benefit the most from the BHD token economy. And biometric verification ensures participants’ ownership of their data and disincentivizes spam or scam accounts.

Recruiting will only become more complicated as technology and society evolve–but it doesn’t have to become more complicated for companies to do well. With the aid of next-generation tools like the blockchain, recruiting can become a better, more efficient process that finds better matches for hirers and applicants.


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