Future of work is a paradigm shift underpinned by self-employment

Small businesses are adapting to the future of work, which is shifting from traditional work models to a blend of freelancing and self-employment, thereby transforming recruitment practices.

The landscape of work is profoundly influenced by the rise of self-employment and the proliferation of small businesses. As more individuals gravitate towards self-employment, traditional employment models, characterized by fixed hours and hierarchical structures, are being challenged...

Small businesses, often nimble and adaptable, play a crucial role in this transformation, providing diverse opportunities and fostering innovation.

Together, self-employment and small businesses are reshaping work dynamics, emphasizing flexibility, autonomy, and a more personalized approach to professional growth.

"Small economic units altogether account for 70 per cent of total employment in the sample of 99 countries studied (...)"

👉 https://www.ilo.org/global/publications/books/WCMS_723282/lang--en/index.htm

Neglecting these new dynamics stifle innovation and limit economic diversification. Traditional models might become outdated, leading to reduced competitiveness in the global market.

Failing to consider this reshape in the world of work can leave businesses and economies stagnant.

Traditional models might become misaligned with the evolving needs and preferences of the workforce, potentially leading to talent drains and decreased productivity.

Moreover, ignoring these shifts can result in missed opportunities for innovation and adaptability, preventing businesses from staying competitive in a rapidly changing market.

Classic recruitment processes, often linear and rigid, is slow to adapt to the evolving dynamics of the modern workforce.

These traditional methods, which essentially prioritize paper qualifications and formal work experiences, may overlook the diverse skills and experiences that individuals from self-employment or small business backgrounds bring.

This can lead to:

• Talent Mismatches: with potential candidates being overlooked or mismatched to roles that don't leverage their unique capabilities.

• Long and Stressful Dispute Resolutions: the absence of mechanisms to address disagreements can make the resolution process challenging and drawn-out.

• Payment Ambiguities or Delays: traditional recruitment doesn't always provide a transparent fee structure or clear guidelines for paying freelancers, which can cause payment disputes and financial difficulties.

• Confused Delivery Expectations: the lack of comprehensive project briefs can lead to misaligned delivery expectations, further escalating the potential for disputes.

• Turnover Concerns and Repercussions: disrupting projects and increasing hiring costs for clients and leading to income instability and career growth concerns for talents.

• Isolation Struggles: working alone, often without a team or office environment, can lead to feelings of isolation, affecting mental well-being and job satisfaction.

Incorporating blockchain and cryptocurrencies into recruitment can thus address many of the limitations of classic recruitment, making the process more efficient, transparent, and adaptable to the needs of the modern workforce:

1. Decentralized Escrow Service: Cryptocurrencies offer instant and transparent transactions. With smart contracts, payment terms can be automated, ensuring that talents get paid promptly upon completion of tasks. If conditions aren't met, the contracts can trigger predefined actions, reducing the need for lengthy dispute resolutions.

2. Transparency and Verification: Blockchain can store verifiable records of an individual's skills, experiences, and credentials, ensuring that recruiters have access to authentic information, reducing the chances of fraudulent claims. Furthermore, all project details, expectations, and deliverables can be recorded transparently on the blockchain. Both clients and talents can reference this immutable record, ensuring clarity in delivery expectations.

3. Verified Reviews: Past work experiences, reviews, and feedback can be securely and immutably stored on the blockchain, providing both clients and talents with trustworthy references.

4. Direct Communication: Blockchain can facilitate direct communication channels between clients and talents from the onset.

5. Efficient Onboarding Processes: With all verified credentials on the blockchain, the onboarding process becomes more efficient, eliminating the need for repeated background checks or verification processes.

6. Decentralized Job Markets: Blockchain can support decentralized job platforms, where individuals can showcase their skills, receive reviews, and connect directly with employers, bypassing traditional recruitment agencies and fostering a more direct and transparent hiring process.

7. Global Talent Pool and Community: A decentralized global ledger can encompass a broader range of talents from various backgrounds, ensuring diversity and quality. Decentralized platforms can foster communities where freelancers can interact, share experiences, seek advice, and collaborate. This sense of community can help mitigate the feelings of isolation commonly experienced in remote and independent work.

8. Enhanced Data Privacy: Blockchain ensures candidates' data privacy. Only authorized parties can access specific data points, giving candidates confidence in sharing their information.