Human Resource Departments Reportedly Rely on This Growing Industry

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Tesla Inc.’s TSLA biggest hiring month this year was January, followed closely by February, according to a Snow Bull Capital report. 

This trend can be seen across industries. After completing budgets in October and November, teams will often spend the end of the year reflecting on what worked and what needs to be added. Then, upon returning from the holiday season, people tend to have a renewed sense of direction and look to capitalize on the plans laid in the previous months.

The capabilities of human resources departments at many companies are tested during this time. The barrage of applicants and all the work that goes into screening each one can overwhelm an under-resourced department. One of the most time-consuming and headache-inducing tasks is dealing with the data surrounding applicants and former employees applying elsewhere.

To offload this burden, a prospering industry serving HR departments’ employee data needs has developed. These platforms, increasingly operating as software as a service (SaaS) model, help streamline the process of tracking and dealing with employee information and its verification as well as other HR needs such as payroll.

This industry, which includes companies like Automatic Data Processing Inc. ADP, Equifax Inc. EFX, and Monday.Com Ltd. MNDY, reached $9.9 billion in 2021, according to IBISWorld. It’s expected to grow with a compound annual growth rate of 5.3%.

One of the most exciting developments in the space is the adoption of blockchain technology to maximize efficiency and security in dealing with employee data. Leading the charge in its adoption is the blockchain as a service company TransCrypts Solutions Inc.

The company, currently undergoing a round of funding, hopes to transform the HR data space through the use of innovative technology. Best known as the tech underpinning cryptocurrencies like Bitcoin (BTC), blockchain in its simplest form is a record of information distributed across a network of computers. 

This revolutionary technology is quickly being adopted in many industries as its potential is better understood. The consulting firm Accenture Plc ACN has said it believes the technology will save investment banks like Goldman Sachs Group Inc. GS 30%.

“[It] will inevitably change the way that HR professionals handle large amounts of sensitive employee data and deploy various HR processes,” according to asset management firm Mercer. “All members of the HR department — from recruiters to the senior leadership — will likely find it disrupting their daily workflows, including the recruitment process, tapping talent pools, running background checks, verifying employment history, engaging contract workers with smart contracts, onboarding, maintaining employee data, maintaining employees’ personal data, handling financial transactions and managing payroll systems.”

If you’re interested in learning more about how TransCrypt plans on using blockchain to transform the way HR departments handle employee data, check out https://www.transcrypts.com/.

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The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.