An innovative blockchain-based system for human resources digitalization with traceable relationship management

Abstract

Small and Midsize Enterprises (SMEs) have faced innovative changes in their organizational structure, especially in human resources (HR) and employee management: these digital structural changes have transformed their business practices and strategies. The employees with new technical skills have also been impactful in this digitalization. The HR departments in SMEs have become increasingly pivotal in recruiting new employees and supporting existing employees throughout the organization. ITSvil in Salerno (Italy) has developed the Easywork project based on the “Fenice” microservices architecture. This system supports the HR departments in efficiently managing HR activities through digitalization. The first step in acquiring new resources is formulating the employment contract, which is essential for stipulating agreements on specific job requirements. Blockchain technology and smart contracts are among recent technological innovations impacting this process. Writing contracts in digital codes to simplify and effectively manage the legal relationship involving bureaucratic tasks and cost management is now possible. The new digital system makes employment contract processing transparent, traceable, and reliable. This research presents the design and development of a new microservice compatible and integrable process with the “Fenice” system based on blockchain technology. The proposed digital system aims to make HR management activities more transparent and traceable.