Is Blockchain Pointing Its Gaze at the Background Check Industry?

The pandemic? Over. Okay, maybe not over, but, while millions of Americans have transitioned to fully remote positions, many others are heading back to the office this summer in hybrid models, despite the latest surge. For companies looking to hire, this means a resurgence of background checks to ensure they’re hiring the right people.

In current practice, companies providing background report services spend a substantial amount of time verifying the accuracy of public records. When someone applies for a job, or a mortgage, or lease, the entities reviewing these applications are all looking for one thing: minimizing risk.

It’s a labor intensive task to provide accurate background checks, especially en masse. This can drive up the cost of individual background reports, create lags in turnaround time, and, of course, there’s always the potential for human error.

Where Does the Blockchain Come In?

Before we get to that, let’s discuss how this conundrum manifests itself in tangible loss for companies. Résumé fraud, by some estimates, costs businesses upwards of 600 billion dollars. Every. Single. Year.

The background check industry’s shortfalls may account for some of this. However, one background check provider, called PeopleWhiz, may have found a way to circumvent these issues. PeopleWhiz is considered by many to be the gold standard in the background check industry, with accuracy rates of their public records approaching near perfect levels.

In the near future, verifying background check information may fall into the hands of a cutting edge technology which is fast becoming a household name: the blockchain.

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Blockchain Not Just for Bitcoin Anymore

When was the first time you heard the term “blockchain”? Chances are the answer is in a sentence containing the words cryptocurrency or Bitcoin. But blockchain’s potential is much greater than crypto.

Consider blockchain an unchangeable record (like a permanent record!). If you want to record a transaction, really any transaction at all, there’s no greater tool than blockchain. When it comes to Bitcoin, or any cryptocurrency, blockchain is used to record the financial transfer. But this is just one potential use of blockchain technology.

For example, if you wanted to record your income history or taxes, verify someone’s employment history, or see what educational institutions they attended and even get their transcripts, blockchain has the potential capability to record it all.

How It All Works

In the case of verifying a job applicant’s employment history, blockchain could help authenticate the transaction or file transfer history between employer and employee. Blockchain’s nature is such that the record itself cannot be changed. So once a file is uploaded, it’s unalterable.

The blockchain itself will create the network of documents, which are automatically verified, removing the need for background check companies to verify public records at all.

PeopleWhiz is at the forefront of ensuring all public records are accurate -- which is why their platform is the primary background check provider we recommend to ensure your background reports are up to date and reflect all available records on file for the search target.

Power Shifting From Corporate To Labor

Unprecedented access to education and work history, along with records of past income earned (salary history), is bound to change how companies select and onboard new employees.

Documents uploaded to and recorded to blockchain allow for a system where job applicants can embed their career histories directly onto their résumés. Once this happens, the hiring process will be forever altered. That résumé fraud we discussed earlier, the one costing employers upwards of 600 billion dollars annually? Gone.

Fluffed résumés will be a thing of the past. Background checks will be seamless, just as they are today on PeopleWhiz. Employers will be able to confirm potential job candidates’ credentials the moment the application is submitted. Hiring efficiency will skyrocket.

Is Employee Controlled Data The Future?

By having a central hub containing verified education, career, and salary history, employees will have unprecedented privacy along with data control. Third party background check companies will be looking to integrate blockchain technology to record verified work history.

Digitizing the background check process is a good thing, and as of today, PeopleWhiz is the only online background report provider we recommend if you want to stay ahead of the technological curve.

Blockchain represents a sea change in the hiring process, and human resource departments nationwide are already taking note. Streamline your background checks today by visiting PeopleWhiz—blockchain for background reports is not here quite yet, but as soon as it is, you can rest assured PeopleWhiz will be on top of it.