Managing regulatory compliance in the people services sector

compliance in people services

There are different types of compliance in the people services sector. These include health and safety, HR, data compliance and regulatory compliance. In this blog, we specifically look at managing regulatory compliance in the people services sector, with particular reference to recruitment and hospitality.

Regulatory compliance is about following a set of rules to avoid legal trouble. But there is also a moral obligation to make sure everyone is protected against fraudulent activities. Particularly those activities that cause personal harm.

Within the people services sector, regulatory compliance is important as it:

  • Protects your business and ensures that all staff have a right to work
  • Ensures the safety of your employees
  • Builds trust amongst your audience
  • Provides transparency to everyone you interact with
  • Demonstrates how your business operates within regulatory compliance
  • And protects the business from expensive fines and penalties for non-compliance

Digital onboarding to manage regulatory compliance in people services  

We all know how the hospitality and recruitment industries have been struggling since Brexit and Covid. Imagine how companies then feel when they finally find their perfect candidate but can’t get them onboarded quick enough. The longer the delay, the more frustrating it is for the candidate, and you risk them changing their mind. Let’s face it, if they are that good, then they probably have options!

Providing a friction-free experience that delights your candidate, whilst maintaining compliance, is easy to achieve with digital onboarding. 

Using a digital platform enables the people services sector to manage their regulatory compliance with ease. Firms will reap the following rewards:

  • User-friendly solution that uses the latest biometric facial recognition technology for faster remote onboarding
  • Real-time identity verification from anywhere (providing the solution partner is a certified IDSP provider – such as NorthRow)
  • Efficient, safe, and consistent compliance with automated candidate document verification to meet the latest regulations
  • Increased confidence with proven technology
  • Extensive audit trail of all checks, held in one platform, with easy-to-use dashboards

Seamless onboarding to manage your regulatory compliance

Managing your regulatory compliance couldn’t be easier. A digital solution can be integrated into your business within hours if need be. With automation you can collect all the documentation you need to onboard your candidates faster. As a software solution hosted in the cloud, your data is held securely and is available at the touch of a button.

There is no need for manual processes that rely on spreadsheets or Google to look up information. Or waiting for copies of documentation that must be photocopied and returned – manual actions that are frustratingly protracted and incur additional expense. 

There’s no escaping the fact that manual processes cause delays and increase costs as well as taking up the time of valuable resources that could be focussed on other tasks. 

Key advantages in digitising your processes to manage your regulatory compliance 

New UK legislation came into effect last year regarding employee right to work checks. Businesses must now hire applicants by meeting them face-to-face; by using technology for ID validation; or using the Home Office online service, to check onboarding documents.

It is a recommendation that businesses use government certified IDSPs (Identity Service Providers). With the prospect of £20k fines, invasive audits and business interruption for those businesses that get it wrong, why wouldn’t you use a recommendation by the government-based department?

We examined out 7 reasons why the switch to a digital right to work solution is advantageous in another blog found here. 

Regulatory compliance for the hospitality industry

Hospitality is often exposed to the risk of fake identities, with fraudsters looking to book holidays and accommodation, alongside staff not having a legal right to work in the UK. 

Hospitality bosses must protect their businesses from unwanted fraud and avoid reputational damage. To manage the process in a more streamlined way, deploying an automated digital verification app solves the specific issue of legal right to work, with greater ease.

Real time remote identity verification uses facial recognition to ensure the candidate is who they say they are. Whilst this is taking place, the smart app draws global data from numerous sources to ensure verification of documents is also delivered within minutes.

Neil Smart, Director of Employee Shared Services at Mitchells and Butlers, explains how their managers can focus on running the business, rather than carrying out HR Right to Work checks. He commented in a recent case study that the ID&V app from NorthRow increases productivity and efficiency, to drive up their bottom line and deliver compliance within Home Office Right to Work legislation guidelines. 

Anti-money laundering in hospitality and tourism, within the people services sector

Other industries have stricter controls when considering anti-money laundering, but the hospitality and tourism sector appears to have lesser scrutiny. There is a definite lack of information and guidance on compliance, so far as money laundering and the collection of consumer payments is concerned.  

This is surprising when you consider that overseas residents spent £5.6 billion on their visits to the UK in 2021 according to ONS statistics.

However, all businesses have a moral obligation to identify criminal activity and should be aware that the net is widening when it comes to detecting fraud amongst the criminal fraternity. Illicit funds from the proceeds of crime, such as terrorism and trafficking, are being exposed and hospitality and tourism businesses need to be wary of the potential for fines, as well as reputational damage.

Managing compliance in recruitment

There are so many processes to adhere to in recruitment. Compliance requirements are complex and ever expanding. When it comes to regulatory compliance for recruitment, Right to Work is a key element, alongside criminal records checks and the verification that the candidate is, actually, who they say they are. 

Using a single-API software package for your automated recruitment verification, means that these disparate processes can all take place at the same time, reducing delays to a minimum. Facial recognition techniques and ‘liveness’ checks can be done remotely, as long as the candidate has a smart device with a camera. Meanwhile, the software can check their documentation against multiple national and international databases, to determine their right to work, check against criminal records data and carry out financial and other checks.

Whereas these checks would previously have taken days or weeks, current software can perform them in a matter of minutes, and remotely, in the vast majority of cases.

Employing a candidate who has been less than honest in their application, not only puts your business at risk, from many angles, but is also costly and time wasting. Once the error has been identified, not only do you need to go through a dismissal process, but you also then need to spend the same money in recruiting a valid candidate. 

Software tools to manage regulatory compliance

Onboarding times can be reduced from days down to minutes with intuitive apps that can be used remotely, at any time, to onboard staff. Verification and validation can be almost instantaneous. But this doesn’t only apply to staff. Customers and suppliers can also be onboarded and verified to ensure they are who they say they are. As a further safeguard, simple checks can be carried out to ensure that your business isn’t interacting with any individuals or companies that are PEPs, have been sanctioned or have adverse media against them.

Software is easily available, to ensure that simple KYC and KYB checks can easily be delivered with automation.  

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