Evaluating The Impact Of Blockchain-Based Smart Contracts On Mitigating Discrimination In LGBTQ+ Performance Reviews And Career Progression

Abstract

The integration of smart contracts into human resource management is frequently proposed to mitigate bias by enforcing transparent, rule-based decision-making. It is commonly suggested to implement smart contracts into the human resource management and, in this way, reduce the risk of bias through the enforcement of rules-based decision-making. Nevertheless, there is little empirical evidence of their success in eliminating the discrimination of LGBTQ+ employees. The present research has a convergent parallel mixed-design, which involves quasi-experimental field research in a number of organizations, as well as, in-depth qualitative case studies, to evaluate the effects of smart contract-based system on the appraisal and promotion results. The quantitative findings of a difference-in-differences study can show that there is a statistically significant change in the rates of promotion and fairness among LGBTQ+ employees, which proves the effectiveness of the system to eliminate procedural bias. Nevertheless, qualitative results show considerable trade-offs, such as the perception of dehumanization among the employees and increased anxiety about the privacy of their data because of an immutable ledger storage. The paper finds the introduction of smart contracts as a powerful instrument of improving procedural justice, but the effectiveness of its introduction depends on the combination of other strategies that will be aimed at improving interactional justice and eliminating important conflicts with data protection models. This study has a critical evidence base to organizations and policymakers intending to use blockchain technology in equity in the workplace.