Persol Group, one of the largest human resource companies in Japan, has partnered with major Japanese IT and electronics company, NEC Corporation, to build a new blockchain-powered recruiting platform. Persol Group is one of the largest staffing companies in the country, with 32,000 employees and a market cap of $5.7 billion as of 2017.
According to the announcement, the two companies have begun working on a Proof-of-Concept to test a direct recruiting service that utilizes blockchain technology to securely manage personal data, prevent falsification of information, and ensure authenticity.
This new platform is expected to target the shortage of IT human resources in Japan. Citing data from Japan's Ministry of Economy, Trade, and Industry, the companies’ reps noted that the skill gap could account for 800,000 people by 2020.
According to the announcement, NEC is acting as a technology provider within the initiative. Teruyuki Nakajima, general manager of corporate business incubation at NEC, said:
“NEC will start a new direct recruiting initiative that utilizes its own blockchain technology. Through these initiatives, we hope that opportunities to find employment online will be provided to everyone fairly, and that a world where diverse work styles and lifestyles will be realized.”
A number of companies around the world have implemented blockchain to improve their recruitment-related processes so far. This has come at a crucial time, given the increased unemployment rate caused by the COVID-19 pandemic. In February 2020, human resources firm Randstad announced an integration with enterprise blockchain platform Cypherium to automate its workflow using smart contracts. In 2019, Big Four auditing firm Deloitte integrated privacy tech by cryptography startup QEDIT to track, share, and validate the qualifications of staff.