You’re on our Singapore website
×

How will Web 3.0 change HR?

A closer look at what’s on the horizon for HR
|
Published 17 Feb 2023
|
Updated 7 Feb 2025
|
9min read
Person with AR headset sitting in front of screen

The world of HR is constantly evolving, and the development of Web 3.0 is set to bring about significant changes to the way HR is managed and executed.

For example, in the near future, the hiring process will undergo significant transformation thanks to the advancements in Web 3.0, or the ‘intelligent web’. Companies will increasingly be able to use decentralised platforms and smart contracts to connect job seekers with potential employers in a more efficient and cost-effective way.

Job seekers will be able to apply seamlessly using an immutable digital profile containing details – not to mention proof – of qualifications, skills and work experience. Candidates may be automatically matched to opportunities, and automatically enrolled and onboarded.

But does this future scenario sound scary, or inspiring?

As technology matures, it’s likely we will see more and more HR professionals incorporating Web 3.0 into their strategies. So let’s take a look at what Web 3.0 is and consider how it could impact HR of the future. To understand these upcoming shifts, it’s crucial to recognise the current big shifts in HR technology. Discover the emerging trends that are poised to change HR management and employee engagement in our big shifts in HR tech guide.

What is Web 3.0?

Web 3.0 simply means third generation internet. Web 3.0, also known as ‘the decentralised web’, features the use of blockchain technology and smart contracts which enable greater transparency, security, and autonomy in online interactions.

Web 3.0 is also characterised by a rise in decentralised autonomous organisations (DAOs), which are entities (or software) with no central leadership. As such, Web 3.0 is decentralised, transparent, open to everyone, and built on top of blockchain technologies meaning that the network is a whole new level – especially when compared to Web 1.0 and Web 2.0.

How did we get here?

In case – like us – you need a quick recap, Web 2.0 has been all about content and the interactions between content creators and web users, hence its moniker ‘the participative social web’. Web 1.0 was the original internet – think back to the days of read-only web logs (blogs), forums, and static pages. It started off as a network of information.

Web 3.0 is the next iteration – it takes the information from Web 1.0 and the content creation and dynamics from Web 2.0 and decentralises it, as well as streamlining storage and connection. Its big vision is to take control from centralised organisations and put it in the hands of individuals, with a wide remit covering everything from data to apps and even currency.

But we’ll try not to get bogged down in the vastness that is Web 3. Rather, we’re going to focus on one specific concept – how Web 3.0 will shake up the world of work.

a group of colleagues having a discussion

The impact of Web 3.0 on the workplace environment

Web 3.0 features several key technologies that will impact and transform the workplace. Let’s look at those and how they could be used by HR professionals.

Blockchain

A blockchain is a digitally distributed, decentralised, public ledger that exists across a network. With immutable records, data is secure and trust can be established, which both speeds up and simplifies transactions and communication, as well as eliminates the need for third parties. Blockchain will certainly drive a big shift in how businesses interact with each other, as well the work we do, how we work and how we get paid.

Decentralised autonomous organisations (DAOs)

DAOs run on a blockchain that offers users a built-in model for decision-making via the collective management of its code by its community. Contrast this to traditional organisations managed by boards, CEOs and committees. As a result, we can expect radical transformations in corporate decision making, and far more fluidity in employment as the gig economy rises ever upwards, driven by DAOs.

AI

The intelligent web is supported by artificial intelligence and machine learning. Generative AI is already disrupting the workplace, yet it’s still only in its infancy. How we communicate, collaborate, and negotiate is already changing. With job displacement and disruption on the horizon, it might be time to reimagine how we structure our teams, businesses and careers. For insights into how AI is transforming HR, read our article on forecasting AI use cases in HR for 2024.

How could Web 3.0 be used in HR departments?

It goes without saying, Web 3.0 has the potential to bring about significant changes to the workplace environment. Here are just a few examples we can foresee in the near future…

Increased automation

From employee self service to the use of smart contracts, many HR and administrative tasks are just asking to be automated.

Because DAOs are organisations that are run by a network of participants rather than by a centralised authority, in future HR decisions will be made through smart contracts, which are self-executing and immutable, meaning they can’t be altered. This could lead to a more objective, fair and transparent decision-making process. In turn this could support more efficient and cost-effective processes and decision making, taking human bias and human error out of the equation.

Ultimately, automation boosts productivity by eliminating unnecessary admin from data-heavy processes like record keeping, VAT, tax and payroll. It will free up HR professionals, enabling them to concentrate their time and energy on more useful activities, such as nurturing company culture.

team members sitting on sofa chatting

Streamlining the hiring process

Another way that Web 3.0 will change HR is by enabling the use of decentralised identity verification. With the use of blockchain technology, employees will be able to prove their identity and qualifications in a secure and tamper-proof way. This can help to streamline the hiring process and increase the accuracy of background checks.

We’re already seeing the benefits of streamlined onboarding in cloud-based HR platforms like Employment Hero, and it’ll be interesting to see where Web 3.0 takes us. To understand the future role of ChatGPT in HR, explore our article on what role could ChatGPT play in HR and people management?.

Talent management and global talent acquisition

Web 3.0 will also enable the use of decentralised platforms for recruiting and talent management. These platforms can connect job seekers with potential employers in a more efficient and cost-effective way. Additionally, the use of smart contracts can help to automate the process of recruiting, hiring, and onboarding new employees.

Global talent acquisition — the strategic process of finding, attracting, and acquiring the best talent from around the world, will become even more streamlined and simple with Web 3.0. The talent pool is worldwide, and applicant experience and qualifications can be verified automatically – information, including CVs, cannot be falsified on blockchain. The recruitment and onboarding process becomes seamless and speedy – location will be no barrier.

Better communication

Blockchain technology makes communication far more transparent, making it simpler (some may say unavoidable) to create a more accountable workplace. For example, the use of smart contracts could help to ensure that all parties involved in a business transaction are held accountable, with blockchain acting as the records management system.

The combination of decentralised platforms, immersive technology, and peer-to-peer networks, also makes it possible and accessible to facilitate more efficient communication and collaboration among employees and teams, locally, globally – or in the metaverse.

And speaking of better communication, the rise of generative AI like ChatGPT can provide seemingly infinite support. From answering HR queries to providing objective guidance and advice on all sorts of topics, generative AI will help to settle disputes, solve problems, make decisions, and who knows, possibly even identify ‘Employee Of The Month’. Who can say what the limits are? The only limit to this next level of communication is our imagination.

Better data privacy and security

Blockchain technology paves the way for enhanced cybersecurity, creating more secure and private environments for storing and sharing sensitive workplace data, helping prevent or eliminate fraud. Data is not held centrally but on a decentralised blockchain, which ensures integrity of the data. This also means there is no single point of failure, making the system more resilient to corruption and software or hardware failures.

More flexibility

Decentralised platforms make it even easier to facilitate remote working, telecommuting and flexible working arrangements. This could lead to a more diverse and inclusive workplace, with employees able to work from anywhere. Blockchain and payment technology will make light work of cross-border payments, local tax obligations, and employee mobility. There is even scope for organisations to create their own currencies. If you can imagine it, it’s possible. or a detailed exploration of HR’s evolution and its role today, read our piece on the evolution of HR and people management.

new employee with her pet dog
Welcome your new team members (and their pets!).

When will Web 3.0 start to be used by HR professionals?

Without a doubt, Web 3.0 has the potential to revolutionise the way HR is managed and executed. The use of blockchain technology and smart contracts can enable greater transparency, security, and autonomy in HR decision-making, streamline the hiring process, and automate HR processes. As the technology matures, it’s likely that we will see more and more HR professionals incorporating Web 3.0 into their strategies.

As with any technology, there are always varying rates of adoption. Network effects strongly influence the rate of adoption, and as it did with the internet itself, this is likely to be sped up just by the very nature of Web 3.0 – adoption will likely be unavoidable at the most basic levels.

And we’re already seeing some features or capabilities of Web 3.0, such as using Global Teams for global talent acquisition. Or using cloud HR software to automate the tasks that make you cranky…

Whether or not you’re embracing the metaverse yet, there will always be a way to engage with technology in a way that suits your business. When it comes to taking HR digital, it can be a big decision. But we’re here to help you get clear on exactly what’s out there, and how it can meet your needs. Improving digital literacy skills within your team is also essential for navigating these changes effectively. Find out more in our guide on improving digital literacy skills in the workplace.

Are there any potential risks associated with using AI and web technologies in HR management?

Unconscious bias in algorithms

One challenge that arises with such technology is the risk of unconscious bias in the algorithm that matches job seekers to positions. The smart contract ensures that only qualified candidates are considered, but it can’t account for unconscious bias in the data input or in the algorithm design. This could lead to a lack of diversity in the pool of candidates by unconsciously favouring a particular characteristic or skill, and businesses will need to continue to work hard to overcome the challenge of unconscious bias.

The other thing about algorithms is that they can be opaque and complex. Google’s algorithms, for example, are famously complex and not documented or known in any one place. This makes it hard to assess their fairness and bias. This can lead to discrimination and lack of accountability in decision-making, especially when it comes to sensitive issues such as hiring and promotion.

Job displacement & job loss (within HR and within the wider workforce)

Automation of HR processes through AI and web technologies can lead to job displacement, especially for low-skilled workers. McKinsey estimates that automation will displace between 400 and 800 million jobs by 2030, requiring as many as 375 million people to switch job categories entirely. This is a global issue that is likely to deeply affect HR departments and the wider workforce.

Aside from job losses, if not implemented properly, the use of AI and web technologies may create a skills gap, where a lack of understanding and training in these technologies can lead to difficulties in adapting to the new environment. It’s never been more important to invest in upskilling your workforce.

Overdependence or poor decision making

With the rise of generative AI, there is also a risk that we become dependent on AI for answers and guidance. Some call this the ‘dependency dilemma.’ This speaks to the idea that rather than using technology to free up effort and time for more benefit, we simply look to the tools to do the work for us. In the process, as Nicholas Carr warns in The Glass Cage, we lose the ability to think for ourselves. We risk losing vital social and cognitive skills.

Is it too late? Have our smartphones turned us into cyborgs already? Elon Musk certainly thinks so. In any event, overdependence on AI and technology is definitely something to watch out for.

Wrapping up Web 3.0

While there are risks, the opportunities that arise with such technology are infinite. Businesses of all sizes are already able to access a larger pool of qualified candidates, and the process will only become more efficient, cheaper and faster.

Web 3.0 certainly has the potential to revolutionise the hiring process, making it more efficient, inclusive and transparent. But at the end of the day, it’s important to be aware of the challenges and take steps to mitigate them, and not rely solely on technology to ensure that the hiring process is fair and unbiased for all candidates. Let’s not forget that Human Resources is about humans, after all.

It’s important to keep these risks in mind when using AI and web technologies in HR management. Here are some steps you can take:

Ready for a digital transformation?

As we lean more and more into Web 3.0, we can be certain of one thing: the future is changing, and it’s changing fast.

Staying ahead of the curve isn’t easy, or even feasible for most SMEs. But you don’t need to get knocked sideways by it either. We’re in this together, and we’re here for you and your team.

Want more? Grab a copy of our Future Working Trends Guide and get to future-proofing your business.

Ready to go digital? We have everything you need!

Alexandra Turner
People Specialist - Employment Hero
Download now
Guide to Digital Transformation
Explore by industry

Request a demo

Complete the form and we'll call you back