Blockchain-based human resource management practices for mitigating skills and competencies gap in workforce

Abstract

Skills gap between company needs and competencies occupied by the workforce can be the source of inefficiencies. The purpose of this research is to develop a blockchain-based human resource (HR) framework to match the needs from the company and workforce competencies This framework will help Corporate Training Centre to standardized the competencies which then used by HR Department to develop the training material. In order to get valid information regarding skills that are needed from the company, we develop a prototype based on Blockchain. Hence, blockchain-based HRM is built to improve the quality of workforce competency in an organization. The current organizations are struggling to fulfil the needs of the workforce in accordance with industry quality standards. Therefore, this will help all parties to create a consensus between the needs of the industry with the labour market. Corporate Training Centre through the competent institution will be the mediator or intermediary to unite the information from companies, training institutions, and Professional Certification Institutions. As a result, in the long term, the needs of the workforce with the qualification required by the company in such industries will always fit the current situation. Blockchain helps to process the information and data needed by each party so that the connection between parties will be assisted efficiently and effectively.