Web3 and HR: What’s on the horizon?
AI, blockchain and NFTs could transform the working world.
Why You Should Care
Web3 is coming.
Blockchain, NFTs and AI are going to be king.
What impact will NFTs have on HR teams and the world of work?
All good things come in threes, the original Star Wars movies, a BLT sandwich, and now the world wide web.
So what is Web3? Although still in its infancy, Web3 is the better connected and more intelligent big brother to Web 2.0 (what we have now). Web3 runs on four major principles: decentralization, blockchain-based, cryptocurrency-enabled, and autonomous and artificially facilitated.
Web3’s impact is likely to affect most job sectors, including HR. This is due to how data is created, stored, and shared within Web3, where the transparency and credibility it provides is the main difference and benefit.
As a result, HR departments will be able to revolutionize the way they vet and hire new employees by utilizing blockchain technology and artificial intelligence (AI).
Some industries are already beginning to embrace and benefit from digital ledgers. One example is the real estate industry; companies in this sector could soon provide non-fungible tokens (NFTs) as mortgage agreements. Blockchain technology can streamline the house-buying process, meaning a property transaction could occur in only a few minutes.
It appears that big things are coming with Web3, and all industries, including HR, need to get with the program or risk being left behind. With a new internet age on the horizon, keep reading to learn how Web3 could affect and improve your HR department.
Could NFTs be your BFFs?
Within HR departments, one of the primary responsibilities is recruitment and talent acquisition. Although discovering new and accomplished candidates can be rewarding, sifting through a mountain of resumes is not.
However, with Web3, HR could use the blockchain-based technology of NFTs to streamline and accelerate the hiring process.
Soon NFTs could be awarded when earning a hard skill, such as a university degree. This unique and non-interchangeable asset will mean HR departments can instantly check technical qualifications.
With an estimated 40% of people lying on their resumes, using NFTs could be a valuable tool to sniff out the ‘embellishers’ and restore trust to the hiring process.
Another benefit of digital ledgers is their transparency, as NFT qualifications would be instantly available on the blockchain as public data. Such transparency would save HR departments time as it means no waiting around for education background checks.
With the help of Web3, HR managers could be provided with a vetted list of candidates, all with the required skill set. This would allow managers to skip to the interviews where they could review and analyze candidates’ soft skills.
It’s true that there is already a variety of AI software available for recruitment. While the current systems can help find candidates and schedule interviews, the process still needs to be managed and checked by a human.
The time HR departments could save with Web3 technology could then be spent improving onboarding for new employees, for example. With better onboarding,
HR can ensure new employees have all the necessary training and support to become well-rounded team members.
Social tokens and employee democracy
What is a DAO? These are decentralized autonomous organizations, which are community-led and move away from central authority, taking a bottom-up management approach. One of their key elements is using ‘tokenomics’, or social tokens, to make company decisions. The voting then occurs within a blockchain making all votes publicly viewable.
In 2021 alone, participants of DAOs grew from 13,000 to 1.7 million. Although this structure may be on the rise, it’s their use of social tokens that could be spread across companies of all types with the help of Web3.
Workers could be supplied with social tokens to vote on issues and ideas within an organization. Giving workers a seat at the table can positively impact a company as empowering employees majorly increases workplace morale and positively impacts productivity.
This involvement can increase job satisfaction, and allowing everyone an opinion can also improve working relationships within a company.
Not every business needs to become a DAO, but social tokens are helpful to HR as attractive incentives to offer when searching for new talent. The opportunity to have your opinion heard can be a new and enticing proposal if you’ve previously worked for a traditionally top-down company.
Social tokens are also significant to current employees as they help workers feel more valued. They can be allocated through a reward scheme, encouraging workers to work towards company goals.
Social ‘tokenomics’ can provide a community feel whether a company is a DAO or not. The idea of social tokens is even gaining traction with celebrities, such as Grammy award-winning producer RAC, aka Andre Anjos, who has his own community token named $RAC.
The future of jobs
The growth and implementation of Web3 is an exciting time for many people and companies; however, it would be wrong to ignore that some job roles would be at risk.
Due to the efficiency and cost-effectiveness of AI, it’s likely that some job groups are more at risk than others, though we will likely see less hiring for these roles rather than layoffs.
From the World Economic Forum’s Future of Jobs Report 2020, it’s clear how the implementation of autonomous machinery is already affecting the job market, with the job roles most in decline including data entry clerks, administrative secretaries, and bookkeepers.
Since AI technology can complete administrative jobs efficiently and is faster than most humans, it is no surprise that this field would be most affected by Web3. However, Web3 and blockchains are also creating a wide variety of new jobs and opportunities.
New roles have been created, especially in the crypto and NFT worlds, including community managers and even chief vibes officers.
These roles involve managing a global company community, taking care of investor relations, and building a positive employee atmosphere. This transition reflects the growing desire for soft skills, as although automation is on the rise, surveys have indicated that hiring candidates with strong soft skills increase company profits.
Of course, IT and tech jobs are booming with the growth of AI and Web3. In the first seven months of 2022, US technology job postings were up 49% compared to 2021. In particular, tech designers and blockchain developers are in-demand, and it’s due to stay that way as more of our reality becomes blockchain-based and metaverse-infused.
It’s clear that recruiting for IT and blockchain jobs will be a big focus in the future of HR; however, people need not panic as there will still be plenty of space for soft-skill-focused positions within companies.
Once Web3 and AI are fully formed, the software can be left to complete mundane administrative tasks, leaving employees time to complete more complex and engaging activities.
Web3 is still in the early stages, but with lots of new technology becoming more widely available, only time will tell how vast its influence and expanse will be.
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Sophia is an experienced payroll specialist with a demonstrated history of working in the HR industry.