Blockchain technology in HR management: reflections on its promises and perils

Grounded in transaction cost economics, this paper examines how blockchain features enhance the efficiency of routine HR activities. Using a conceptual analysis supported by illustrative examples, we explore the alignment between blockchain functionalities and different categories of HR tasks such as verification of qualifications, contract management, employee information management, payments and rewards. We argue that while blockchain may streamline transactional processes, its features are ill-suited for relational and discretionary functions that require contextual judgment and human sensitivity. Uncritical adoption risks displacing HR’s strategic role and may introduce new inefficiencies, including psychological transaction costs. We advocate for a balanced and context-aware approach to integrating blockchain in HRM, cautioning against overhyped narratives that underestimate the importance of trust-based, interpersonal dimensions central to effective human resource management.