Know Your Employee (KYE)

Finding the best employee for a business can often become a challenge for managers. For employers, the most important aspect of their job is the people with whom they work.

In what way they can contribute to the organization, which departments they can work better in, and what are their strengths? Is the employee a possible threat to the company? Know Your Employee (KYE) addresses all these questions and helps make the employee onboarding process streamlined and secure. 

What is Know Your Employee?

Know Your Employee (KYE) is the set of actions which the management takes to establish a good employee-business relationship. KYE is not just limited to employee onboarding but is also concerned with their status after joining the organization. It involves communicating with employees on a regular basis to provide them with a comfortable workspace as well as taking measures for corporate security. 

How Important is it to Know Your Employee?

Companies invest many resources in building a strong relationship with their employees. 

This helps achieve long-term retention which could benefit in the long run. Understanding the employee’s needs and responsibilities is the first step towards building all-important trust. Apart from that, KYE checks play a vital role in assessing the employee’s background that helps prevent corporate fraud and losses. KYE ensures a safer employee onboarding which can help managers find a productive and trusted resource.  

KYE Benefits – Employee Onboarding

Prevent Employee Fraud

This type of fraud occurs when employees purposely exploit company resources for their benefit. It usually takes place when someone working in the company diverts business funds, steals business opportunities or any property of the business, and commits pension fraud. A good KYE process involves background checks to closely monitor potential recruits and their financial records to take down possible instances of employee fraud. 

Mitigate Money Laundering 

Employees of financial business and banks could be potentially involved in helping money launderers. Because of the nature of their job, it is possible they may get contacted by criminals to provide cover from Anti Money Laundering (AML) penalties. An employee onboarding software powered by KYE verification is essential for businesses as it helps identify potential criminals which are a risk to the organization.    

Avoid Corporate Losses

Oftentimes, criminals will impersonate someone else to get a job or position in a company. The intention of these bad actors is to steal an organization’s resources by illegally obtaining assets or valuable items from the workspace. These fraudulent employees contribute to corporate losses which are a big challenge for enterprises and startups alike. If your employee is a high risk-entity you might end up losing market value and reputation. Performing identity verification through employee onboarding solutions can better identity and take down such malicious workers. 

Access Control Privileges

Controlling access rights in organizations is of great significance to avoid data breaches and potential cybercrime. A Know Your Employee (KYE) process takes into account the necessary information to determine the position and privileges of an employee. KYE allows individuals with different levels of access to resources depending upon their role in the organization. 

For instance, a facial recognition software verifying an executive officer to provide access to employee details in the organization. The KYE technology identifies that the user is authorized to view sensitive information as per their profile created during the employee onboarding process. 

Remote Onboarding 

Employee identity verification allows online businesses to remotely hire workers from across the world. This way employees can work from the comfort of their homes regardless of where they are physically present. The onboarding process checks whether the employee is a scammer or a trusted individual, ultimately helping managers in finding better job prospects.