Blockchains 2019 in e-HRM: Hit or Hype?

Abstract

Blockchains, also known as “distributed ledger technologies” (DLT) are perhaps the emerging innovation that, in the years leading up to and including 2019, is raising the highest expectations for HRM in the 4.0 business environment. In essence, a blockchain is a very specific type of database, with characteristics that made it the ideal application for cryptocurrencies like Bitcoin. Within the context of digital- or e-HRM, there is potential to improve human resource management (HRM) processes using blockchains for employment screening, credential and educational verification, worker contracts and payments, among others, notwithstanding questions about its efficiency vis-a-vis conventional alternatives (Maurer, 2018; Zielinski, 2018). The research questions examined in this chapter include the following: What are the main characteristics of blockchains? Will they be adopted in a widespread form, specifically by HRM departments? Constructs from Diffusion of Innovations (DOI) theory (Rogers, 2003) are used to inform the Human Resources scholarly and practitioner communities; this robust theory may help companies allocate resources (e.g., budgets, personnel, managerial time, etc.) in an evidence-informed manner. As of this writing, very few blockchain applications, such as credential verification and incident reporting, seem to hold a strong potential for adoption.