KYC Checks used to be strictly confined to the world of finance as they were used to ensure that prospective clients were not involved in any activity that was in breach of money laundering laws. They are still used for this very reason, but it stems a lot further than that as well. These checks are now used for a few different aspects of business, whether it is so organisations generally have a better idea as to who they are working with or also, more commonly now, within the world of recruitment.
What is a KYC Check?
A KYC check is a simple way that organisations are able to manage the risk posed by forming a commercial or working relationship with somebody who has been involved in negative activity. This includes illegal acts such as terrorism, money laundering and other forms of crime. In terms of forming commercial relationships, in carrying out KYC checks you help with negating the risk of fraud, not to mention, if you run KYC checks on customers and prospective employees, you are also providing your business’s reputation with a layer of protection as well.
A KYC Check involves several different steps that are carried out by a business to fully:
- Establish and understand the customer / employee’s identity.
- Have a grasp on the nature of the activities that have been carried out in the past by the customer / employee (the primary goal of this step is to make sure the person or organisation in question is legitimate).
- Assess money laundering or other risks posed by going into business with the customer / employee.
Why Are KYC Checks Being Used in Recruitment?
There are several different aspects that go into making a successful organisation. These include the likes of having a good product, excellent customer service skills and a strong online presence. Whilst all of this is important, it doesn’t mean much if your company has a poor reputation.
It is crucial that businesses monitor their online reputation so that prospective customers are not deterred from engaging with them because of negative reviews. Organisations now see the clear benefit that comes with having a positive reputation and as such are frequently turning to reputation management organisations in order to improve their online presence and brand perception.
A businesses actions and the services that they deliver play a large role in their overall online reputation. However, with the above in mind, the people that they hire and are seen working with also have a huge role in the way that they are perceived by the public.
There are numerous different examples that outline exactly how a business’s reputation has taken a hit thanks to the actions or reputation of one single employee. Organisations are plummeted into crisis management mode and usually have to fire the employee as a result, scrambling to recover how they are viewed by the public.
These risks have always been the case, but they are amplified even more so now thanks to the frequented use of the internet by organisations and consumers alike. There are nearly 5 billion people in the world who use the internet in the modern age and all of these contribute to the increased popularity of the web. Not only that, but the ever-growing number of internet users means there are more individuals who behave inappropriately online, which has unsurprisingly become a huge risk for both businesses and individuals.
As such, it is important that KYC checks are done on prospective employees in order to ensure they have not behaved a certain way online, or have negative content published online about them that could go on to subsequently determent a company’s reputation. There are a few different means by which KYC checks can be done.
Use Technology to Help
Technology can be a huge benefit when it comes to running KYC Checks and staying up to date with a candidate’s online reputation when you are considering hiring them. Organisations turn to smart technology more and more in the modern age which means there is no surprise the same is happening within the world of reputation management. There are effective tools out there such as those provided by Yoono which can help. There are several benefits that come with utilising technology in order to carry out KYC Checks, which include:
Easier to Digest Information
Thanks to the volume of information that is on the internet, it can be difficult to properly carry out checks that provide you with all the relevant information. When you use Yoono, all of the information needed will be broken down into an easy-to-read report, that will give you a full run down on the potential employee you’re considering hiring.
Compliance Becomes More Straightforward
There are a few regulations that businesses need to act within whenever they decide to look into potential staff. When you use technology and take advantage of the software that is available, you are making it so that you know you and your businesses are being compliant in your searches.
It Will Save You and Your Business Time
When it comes to running your business, no doubt you are already going to be pressed for time and as such, taking out days from your schedule in order to carry out KYC checks in the recruitment process is simply a non-starter. When you are using the software available to carry out your KYC checks, you are going to be saving yourself time in the process.
Should Your Company Be Using KYC Checks in Recruitment?
Your company needs to ensure that it is keeping an eye on its online reputation if it intends to succeed and grow. This means providing clients with a top tier service and also making it so that you are only working with and taking on customers and employees who will not damage your businesses reputation.
One of the most effective ways that you can do this is with KYC Checks which will allow you to get a full breakdown as to who your prospective employees are and what their online reputation is like. You should use technology to your advantage when doing this as by utilising software such as that provided by Yoono, you are going to be able to get a full breakdown as to what somebodies online presence is like and whether it might subsequently tarnish your organisations reputation.