BLOCKCHAIN-BASED HR SYSTEMS AND TRUST IN HR PROCESSES

Abstract

The rapid digitization of Human Resource Management has raised critical questions regarding transparency, data security, and employee trust in HR processes. This study investigates the impact of blockchain-based HR systems on trust in HR processes, examining transparency as a mediating mechanism. A quantitative research design was employed, collecting data from 250 employees across medium and large organizations utilizing digital HR systems. Statistical analyses, including descriptive statistics, correlation, regression, and mediation testing, were conducted to assess relationships among the variables. Findings indicate that blockchain-based HR systems significantly enhance trust in HR processes both directly and indirectly by improving transparency. Transparency emerged as a partial mediator, highlighting its central role in fostering procedural clarity and employee confidence. The study contributes to digital HRM literature by providing empirical evidence that blockchain technology is not only a technical innovation but also a strategic enabler of trust and accountability in HR governance. Practical implications emphasize the adoption of blockchain to strengthen fairness, transparency, and credibility in organizational HR practices.