The Importance of Employment Verification and How It Benefits Companies


Employment verification checks ensure job candidates have the experience and skills they claim to have on their resumes. They also confirm the dates the applicant worked for a particular company and their job titles and responsibilities. Employers can legally request information about a candidate from their previous employer based on their country’s specific laws. However, manual verifications can take weeks to complete.

Background Checks

Employment verification is a crucial step for companies looking to hire suitable candidates. It helps ensure that the qualifications and skills the candidate lists match what they have done in their professional careers. This ensures that the company hires a qualified and reliable individual who will bring value to the role.

Employment verifications involve contacting the applicant’s previous or current employers to confirm their employment details. This can be done through phone calls or online verification portals. Depending on the employer’s policies, the employee may have to sign a consent and release form granting the requesting party permission to verify their information.

The process must be followed carefully to avoid privacy violations and legal complications. The information verified during the verification process includes the date of hire, position, salary, and responsibilities. It also covers any terminations, layoffs, or resignations. An employee’s background check can also include any criminal records discovered while with the company. These can significantly impact the company’s decision-making process, especially if they have been previously arrested or convicted of criminal activities.

Employers must perform comprehensive background checks on their employees before taking on new roles. This will help reduce the risk of fraudulent activity and other liabilities arising from poor hiring decisions.

Reference Checks

Employment verification involves contacting an applicant’s previous employers to verify the information they provided on their job application. This can include confirming the dates of employment, job title, and salary. It also lets the company learn more about an applicant’s work history.

If an employer is reluctant to give this information, it can be a red flag that the candidate may have lied on their resume. A reliable CRA will try multiple ways to contact past employers, including email, phone, and fax. They will also provide an updated status report each time they attempt. This demonstrates their commitment to accuracy and ensures that the hiring manager has the most up-to-date information.

In addition to HR leaders, employers may also request employment verification from third parties, such as lenders and landlords. These verifications allow the lender or landlord to ensure the applicant is employed and can pay for a mortgage, credit card, or loan. All companies need to perform verifications on their applicants.

Doing so ensures that the information on the job application is accurate and allows the company to hire the best candidates for their open positions. It can also protect the company from having to train an employee who doesn’t have the skills, qualifications, or experience to do their job well.

Salary Checks

Employment verification involves a firm considering an applicant for a role and calling past employers to confirm information about their candidate, including job titles, tenure, and reason for leaving or termination (if applicable). This check often comprises a variety of other checks, such as background checks, identity checks, and criminal record checks.

Companies should only request information legally authorized for use during the hiring process based on their country’s specific laws. Employment verification helps identify candidates who’ve exaggerated or even lied about their work experience on their resume. Companies should hire employment verification specialists with deep expertise in various industries and are well-versed in local, state, and federal laws regarding collecting and releasing consumer information.

They should also be adept at handling a diverse set of clients, from small businesses to multinational corporations, and be able to tailor their services to suit the needs of each client. They should also be able to provide a fast, efficient, and cost-effective service while maintaining compliance with the relevant legal requirements.

Credit Checks

Employment verification involves contacting a job candidate’s former and current employers to confirm their work history and employment details. This includes their job titles, responsibilities, and dates of employment. It can also include their education and certifications.

This information is used by HR teams and hiring managers to ensure that a job applicant’s resume is accurate, which prevents them from making costly hiring mistakes. It’s estimated that 78 percent of people lie or exaggerate their experience on their resumes. Employment verification helps companies avoid hiring dishonest candidates, saving them time and money that would have been lost and training employees unprepared for the job.

During the hiring process, it’s typical for a potential employer to request employment verification for a new hire. Still, these checks can be requested by anyone interested in an employee’s work history. For instance, a credit card or mortgage lender may ask for a verification when reviewing an application. These requests can reveal discrepancies in the applicant’s credit or financial stability, which may affect their ability to make payments.


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