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Employee evaluation system based on blockchain technology from Japan

Author: LB 2020-06-12 1180

The concept of Blockchain is a revolutionary technology. Originally, it was designed to record cryptocurrency transactions, but these days its applications reach further than that. Even banks and financial institutions seem to show interest. The idea of Blockchain is very universal and certainly we will see many more Blockchain based solutions in the future. In this aspect Japan seems to be pioneering and several companies in the country are experimenting with this brand new technology.

A very good example of these innovative solutions could be the one introduced by Peer-Trust in June, 2020. They are developing a rating system to motivate their employees and shed light on certain inefficiencies inside a corporation. It might sound a bit scary, because no one likes to be rated all the time, especially by other workers, but Japanese employees seem to be positive about this idea. The initial results show that with the help of this new technology, several processes can be made more effective and human relations can also improve.

The problem of aging population in Japan is something politicians have to deal with. The ever increasing number of pensioners puts significant pressure onto the country's economy. Life-time-employment or (終身雇用) has always been a popular slogan when citizens were discussing the stability of the economy, however these favourable elements of the Japanese society do not seem to be eternal and continuous innovation is necessary for the country to stay competitive in the region. Formerly, Japanese corporations unquestionably represented these values, but Japanese workers are not that loyal anymore and workers actively seek for new opportunities whenever a better salary or a more friendly atmosphere is offered to them. Therefore, evaluating worker performance in an environment where employees often change is no easy task. Naturally, employers would like to know as much as possible about their workers soon after they join the company, but is this possible at all? Would not it be beneficial to know how hardworking and employee is? Peer-Trust provides the solution!

Rating system based on Blockchain technology

Their software package is designed for corporations, they do not serve personal clients. It is all about cards and comments. If an employee works hard for long hours, which we all know that in Japan is considered to be a meritorious deed he/she gets evaluated positively by the coworkers. Hence the name Peer-Trust. Peer stands for a colleague and Trust can be earned by hard work.

Workers can evaluate each other using 6 different cards

The 6 different type of cards supposed to represent traditional Japanese values. These are the following:

  • (1)チャレンジ ー Challenges
  • (2)ロジカル ー Logical thinking
  • (3)思いやり ー Taking care of others
  • (4)やりきり ー Finishing off things
  • (5)アイディア ー Ideas
  • (6)正義感 ー Sense of ethics

With the aid of these cards a worker can not only express "we get on well/we hate each other" type of relations, but they can represent even more complex human connections and with the improvement of these factors working efficacy in Japanese corporations increases as well.

Workers can check the types and the number of cards they get, therefore they have the option to improve these factors in the future and it seems that workers become more confident when the Peer-Trust system is in use.

3 month trial and some results

Following the introduction of the Peer-Trust system, 6 parameters were investigate after a 3 month period. These were the following: Human relations, Appraisal, Sense of performance, Sense of improvement, Sense of responsibility and Contribution. Each of these factors exhibited a 10% increase according to the results reported by the workers. Therefore, we can conclude that the Blockchain based Peer-Trust works.

Application in larger corporations

Companies with more than one offices have also started using the Peer-Trust system. In these cases, since the offices were far away from each other and managers were unable to interact with their workers the large corporation started to fall apart, but with the introduction of the Peer-Trust system managers were able to track their employees and monitor their mood changes.

What kind of functions does Peer-Trust have?

Sending these appraisal-cards is obviously supported by the application. Besides, there are stickers to express commiseration, various types of reaction, timeline, personal log, rankings, CSV export, manager settings, notifications and Slack synchronization are also supported by the Peer-Trust system. Pretty convenient, right? Currently they only have an iOS version and they provide a free version for the first 20 users. The 21st user will have to pay for the service, but they promise to provide discount for those who frequently use the application.

Where does the Blockchain appear?

The mutual evaluation system in Peer-Trust registers and stores these appraisal cards on a Blockchain. They try to build an abstract object christened to "career-asset", which will be used by the employee. This object can be built up little by little thorough ones carrier path. When the worker is trying to change jobs, the intact state of this data is extremely important because otherwise it cannot be trusted by the new employer. For this purpose, Blockchain is a perfect tool.

Whenever a new employee in Japan applies for a new job, his/her career related data can be extracted from the Blockchain and additional entry can also be recorded. During the evaluation of the worker's performance and other personal improvement processes a similar two way data transfer would be performed. The company developing Peer-Trust are planing to use their Blockchain for registering payroll related data and whenever some kind of trouble arises with a certain worker.

Who is doing Blockchain related research in Japan?

Mainly Jun Nakamura from the Rikkyo University in Tokyo, who is researching the field of personal development. The website of his research lab in Japanese can be accessed using the following link:

The organisation behind Peer-Trust

The organisation behind Peer-Trust is very young. It was established in June, 2020. They work on Blockchain related technologies and public information.

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