Impact of Decentralization on Human Resource structure in 2023

varsha sarkar

July 24, 2023

5:06 pm

A new way of thinking about how to expand enterprises, encourage internal communication, automate procedures, and create workflows that are apparent to all parties was made possible by digital transformation.

Although digitising organisations is a crucial component of scaling, structures can grow so large that they cannot be controlled by central human resources departments that want to continue catering to the daily demands of their employees. Keeping up with everyone is a further problem in the remote-first world that the pandemic has facilitated.

In 2023, the work landscape will change in a variety of ways. The employee-employer relationship has changed as a result of the pandemic and the acceleration of the digital revolution. The year 2023 will see new HR trends add value to the recent transformation that the HR industry has undergone, from a more effective hybrid work paradigm to the Metaverse.

The upcoming year offers HR a chance to re-evaluate the function’s importance in the post-pandemic environment. Specialists in human resources have been essential in guiding businesses through the pandemic, the resulting inflation increase, and the ensuing economic crisis. In other words, HR might significantly affect the organisation if properly enabled.

Emerging human capital challenges

An HR system specifically created to reduce interruptions is required due to the growing popularity of the gig economy, working from home or away from central places, contracts, or freelance jobs. Innovative, decentralised HR platforms are required, as well as ones that are adaptable and capable of handling changes in real-time. Composable platforms based on distributed ledgers have been established as a result of the shift from Web2 to Web3.

The blockchain-based digital transformation gives a fresh perspective on scaling and automating activities that are occasionally too large for centralised HR departments to manage. The remote-first realities tapped into COVID-19 and exposed the latent potential for assessing and monitoring employee performance while managing remote attendance. HR departments must develop a plan that balances human capital with the growing pains due to the evolving workplace.

Foster personal relationships

As a company grows, it is harder to establish personal relationships among leaders and employees. One could argue relationships outside the workplace are not meant for business outcomes. Still, leaders must understand what drives their people to do their best work and keep them motivated. Transferring some human capital management power to leaders, who often spend most time either working (whether in-person or remotely) or outside the workplace with their people, will drastically increase the knowledge on how a company can help each individual grow, how to retain the best talent and what changes must occur to make their employees brand ambassadors.

Human Resources future in a Decentralized World

We anticipate the virtualization of the workforce thanks to the metaverse, where employees could utilise avatars to work, learn, socialise, trade, and transact as firms grow used to operating without daily commutes. As that occurs, a new mode of conducting business is being introduced by the realities of the Decentralised Web, nonfungible tokens (NFTs), etc. Following are some possible future effects that decentralisation may have on HR procedures:

Recruitment

Due to the fact that HR departments mostly rely on recruiters or outside agencies for information, current recruitment practices consume a lot of time and resources. Blockchain gives the ability to do away with third parties and the back-office components of recruiting, which will eventually render recruiters unnecessary.

Be ready for possible disruptions

In a world where the workforce is decentralised and scattered, blockchain and Web3 protocols promise a similar breakthrough. The Internet brought about innovations that dramatically revolutionised how businesses and society spread information.

It is important for HR to think about developing procedures that give incentives for both parties as employee requirements evolve to take into account new work and remuneration models and the possibility of co-owning businesses through token ownership. Blockchain and its uses must be studied by leaders in HR and digital transformation in order to get ready for future disruption in their field.

varsha sarkar

July 24, 2023

5:06 pm

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