The Future is Decentralised: Web3 Staffing and the Evolution of Hiring

Web3 has been a hot topic since the rise of NFTs and Metaverse, with big tech companies like Meta, Stripe, and Microsoft joining the race.

This emerging technology, also known as the decentralised web, promises to revolutionise how we look at the internet, but is it ready to transform how we hire and run a company?

Imagine a world where Web3 changes everything, even how we hire people. It’s at the forefront of this change, ready to turn HR operations upside down.

Understanding Web3 Staffing

With traditional hiring — HRs review job boards, resumes, and LinkedIn profiles and conduct multiple interviews. But still may fail to assess a candidate's skills and experience accurately.

In Web3, the hiring process is transformative. Instead of relying solely on job boards, employers use blockchain technology to tap into a global talent pool and create a decentralised database of candidates, with each individual’s data verified and recorded on the blockchain.

Benefits of Web3 Staffing

Web3 is not just another passing trend. It has the potential to redefine HR functions, create new processes, and bring quicker results. Let's take a closer look at the mutual benefits it brings to the table for both employers and job seekers.

1. Increased transparency and trust through blockchain technology

Blockchain is a digitally distributed, decentralised, public ledger (database) where the data is transparent and secured.

Such transparency eliminates the possibility of fraud or misrepresentation in the hiring process, helping HRs to accelerate the process and offer a fair opportunity.

Since the data is publicly accessible, candidates can confidently compete in an open environment, showcasing themselves.

2. Empowering individuals and reducing middlemen in the hiring process

Web3 staffing empowers the candidates to showcase their skills and achievements in a decentralised manner, eliminating the need for intermediaries and reducing bias in the hiring process.

With fewer parties involved in the chain, verifying a candidate’s qualifications cuts the time. This results in a smoother and more streamlined hiring journey for hiring organisations and job seekers  

3. Access to a global talent pool and diverse skill sets

With Web3 and decentralised platforms, recruiters can quickly tap into a worldwide talent pool, discovering top talent from around the world and hiring.

This also enables you to hire niched talent that may not be readily available in local markets. For candidates, Web3 allows them to freely explore flexible working hours, increased productivity, and work-life balance — across the world.

Web3 Staffing Platforms and Technologies

Web3 staffing leverages various platforms to streamline the hiring process, making it more efficient and convenient. Here's a simplified overview of how this technology works:

Overview of decentralised talent platforms and marketplaces

Decentralised talent platforms and marketplaces like WoofWork and ThirdWork make it easy for freelancers and fractional employees to explore working in the Web3 world.

Candidates can easily show their proof of work without a lengthy process and compete with others in a fair environment.

Smart contracts and blockchain-based reputation systems for assessing candidates

Smart contracts and blockchain-based reputation systems are trustless platforms that can automatically verify a candidate's qualifications and background using on-chain interactions.

Such platforms use NFTs, Soulbound Tokens, Web3 Domains, or Wallet IDs based systems to verify an individual's details to streamline hiring.

While smart contracts automate hiring, blockchain-based reputation systems provide a trusted record of candidates' skills and achievements.

Web3 tools for identity verification and skills validation

Since Web3 is still a new domain, verifying identity and skills often becomes challenging. Here are a few tools you can consider to ensure smooth onboarding:

• Dock: It provides solutions for creating, updating, and using digital credentials anchored in the blockchain, ensuring the credentials are secure, verifiable, and tamper-proof.
• Fractal ID: A digital identity tool that uses machine learning algorithms to verify ID documents from over 30 countries. It is a reliable and secure solution for identity verification in the Web3 ecosystem.
• Stripe Identity: It lets developers authenticate users to prevent fraud while minimising customer inconvenience. Used by companies such as Discord and Clubhouse, Stripe's Identity solution supports KYC rules, validates ID documents from over 100 countries, and uses advanced machine learning to detect fake IDs.
• MetaIntro: A platform that allows users to showcase their skills and connect with potential employers or clients.
• InCred: It is an on-chain platform for custom badges and awards. It lets organisations recognise their team's achievements, create a high-performance culture, and achieve their goals.

Navigating Challenges in Web3 Staffing

Web3 staffing holds immense potential to change HR functions, yet it's widely uncharted territory with certain limitations.

1. Skills Shortages

In 1997, Mckinsey coined the phrase “war for talent”. Today we enter the Web3 War for Talent. According to Andreessen Horowitz, currently, there are thousands of blockchain developers; by 2030, there will need to be over one million. Creating learning programmes and encouraging students into this space will be critical as companies battle for top talent.

2. Ensuring privacy and data protection in decentralised hiring

Web3 raises privacy concerns due to its decentralised nature. While it allows easy access to candidate information, it can often be used to impersonate or commit scams. Hence, employers and decentralised platforms must exercise strict privacy and data protection.

3. Potential risks and mitigations in Web3 staffing processes

As mentioned earlier, Web3 is a new concept. Several countries are yet to adopt it properly. Hence, to ensure seamless adoption of this new hiring ecosystem,  you must be aware of the local laws, taxation, and data privacy regulations.

‍

Skill Sets in Demand in the Web3 Ecosystem

When people say Web3 projects are always hunting for new talents, they aren't exaggerating. The industry has a significant shortfall of skills, and expertise is always in demand.

There are some skills that Web3 projects always want, both technical and non-technical. Here are five of them:

• Understanding Blockchain: Knowing the basics of blockchain is really important. It helps to design and make systems that work well and are secure.
• Knowing Cryptographic Algorithms: Being familiar with the codes that keep transactions and data safe is a must-have skill.
• Being DeFi Smart: Understanding DeFi models, lending platforms, and yield farming can give you an edge in the fast-changing Web3 world.
• Project Management: Handling multiple tasks, coordinating teams, and ensuring projects meet their goals is a must-have non-tech skill for Web3 projects.
• Good Communication: The Web3 world is tech-heavy, but explaining complex ideas to everyone - from tech experts to non-tech investors - is crucial.

‍

Technical proficiencies in Blockchain, Smart Contract Development, and Cryptography

Technical know-how forms the bedrock of the Web3 landscape. Here are a few roles where these skills are particularly relevant:

• Blockchain Developers: Blockchain engineers create, optimise, and architect blockchain systems, driving Web3 projects forward.
• Smart Contract Developers: These wizards write the code that automates transactions on the blockchain, ensuring seamless operation within the ecosystem.
• Cryptographers: These specialists ensure the network's security, protecting it from potential threats and hacks.

‍

Emerging skill sets related to Decentralised Finance (DeFi), Decentralised Governance, and Decentralised Applications (DApps)

As the Web3 world evolves, new skill sets rise to prominence. Acumen in decentralised finance (DeFi), decentralised governance, and decentralised applications (DApps) are increasingly coveted. Here are a few job roles that call for these emerging skills:

• DeFi Analysts: These professionals navigate the complex landscape of DeFi, helping to assess risk and value in this ever-changing field.
• Governance Specialists: They ensure a Web3 project's decentralised governance model runs smoothly, balancing various stakeholder interests.
• DApp Developers: These innovators build applications on a decentralised network, transforming traditional apps into Web3-compatible solutions.

‍

Strategies for Hiring in the Web3 Space

Web3 brings possibilities, but you must approach it strategically for better results. Here's how:

1. Leveraging Web3 communities and networks for talent sourcing

Web3 communities and networks are full of talent waiting to be hired, giving employers access to an untapped global pool to instantly discover top talent and fill specialised roles.

2. Assessing candidates' understanding of Web3 principles and values

The first checkbox a candidate must tick to be a part of Web3 is their understanding of Web3 principles and values. This helps you understand whether candidates align with their brand identity, voice, goals, and ideas.

3. Incorporating blockchain-based assessments and projects into the hiring process

Blockchain-based assessments and projects can provide a transparent and verifiable record of a candidate's skills and achievements. As an HR practitioner, skill verification is one of the most problematic aspects of hiring; seeing a candidate's skills and achievements with blockchain-based tests and projects makes the process straightforward.

‍

Embracing Decentralised Work Models

Decentralised work models offer new opportunities for remote work and the gig economy. Here's a look at the benefits and challenges:

Benefits and Challenges of decentralised work models

While both parties enjoy transparency, flexible working hours, and pay, there are particular challenges to decentralised work models. For example, managing remote teams, ensuring effective communication, and maintaining a strong company culture in a decentralised environment.

Exploring remote work and opportunities in the Web3 space

Talent is abundant worldwide, but accessing this talent outside of major Western conurbations has created challenges and inequalities. Remote work has been around for a while. Still, the emergence of Web3 and the scarcity of skills within it opens up new avenues and reinforces opportunities for companies and candidates to work remotely.

It's a win-win situation where brands can leverage decentralised platforms and smart contracts to hire more efficiently and cost-effectively.

Creating effective workflows and collaboration mechanisms for decentralised teams

As Web3 grows, you must establish effective workflows and collaboration mechanisms for decentralised teams.  Leverage Web3 native tools like DeWork and other platforms to ensure smooth communication and collaboration.  Also, implement strategies to build a strong team culture in a decentralised environment.

‍

The Future of Web3 Staffing

Web3 is here to stay, and as the world adopts it, the future of hiring is set to transform.

Predictions and trends in Web3 staffing and decentralised hiring

Web3 staffing offers a new paradigm with better transparency, efficiency, and inclusiveness. By leveraging blockchain technology and decentralised platforms, employers can tap into a global talent pool and find the perfect match for their organisations.

Impact of Web3 on traditional staffing agencies and HR Practices

It goes without saying that the automation of HR processes will ultimately lead to the displacement of HR jobs, especially low-skilled ones.

If we go by numbers, according to a McKinsey report, 22% of the workforce, or 53 million jobs across the EU, could be automated by 2030, which will have a significant impact on the HR space.

Opportunities for innovation and disruption in the Talent Acquisition space

As some jobs become redundant due to HR automation, new jobs will be created.

Web3 presents an exciting opportunity to further streamline the global talent acquisition process and bring more innovation and disruption in the space, from new hiring platforms to innovative assessment tools — the possibilities are endless.

‍

Conclusion

As we navigate the uncharted waters of Web3, it's clear that the landscape of HR and staffing is all set for an upgrade. Rather than viewing this as a threat, it's an opportunity for HR professionals to redefine their roles and strategies.

Organisations can create an inclusive environment, stay informed, and leverage new, decentralised platforms to unlock the full potential of web3 staffing.

With Teamed, you can easily onboard talent from anywhere, handle cross-border payments, and manage local tax obligations. Join the web3 revolution and embrace the future of hiring with us!

‍