A large number of candidates falsify educational records to land jobs. A significant number of job applicants falsify information on their resumes. A large number of applicants fake job and salary information to get loans and visas. All this amounts to serious commercial loss to various organizations. But thanks to the information age, employment verification has become a norm to increase transparency and authentication.
What is Employment Verification?
Employment verification is a response to an inquiry by a prospective employer, a government agency, or an outside entity, such as a lending institution, that the current or former employee is or was employed by your organization.
Typically, the requesting organization/auditor wants to verify:
- Dates of employment
- Job Responsibilities and Title
- Salary information
- if the individual is still employed with the organization
Every organisation should have an employment verification policy that is constantly enforced. It is up to the employer to release only as much information as needed but it is important to practice consistency when dealing with employment verification requests.
Where can Request for Employment Verification come from ?
- Prospective Employer
- A Government Agency
- Lending Institution
- Embassy/Visa Agency
- Background Verification Agency
- Child Adoption agencies
- Builders and Home owners
Why it is Important?
Every employer knows the costs of a bad hire. The impacts are accounted for in time, money and morale. For any organization to grow, it is imperative to hire the right candidate. Given the fact that misconduct and fraud are possible threats when it comes to hiring, companies have become extremely cautious. Thus employee screening plays a crucial role in verifying the background of the candidates and enable organizations to hire better.
In the US, background verification has proven to be a huge benefit to employers in mitigating this risk. A report published by HR Management Magazine documents the ROI of dollars spent on background verification as 937%. According to the US Small Business Administration, for every dollar an employer invests in employment screening, the return on investment ranges from $5-16, resulting from decreased employer liability. The economics of background checking are simply too striking for employers to ignore.
Human capital is increasingly being acknowledged as the most important investment for any company. Finding the right talent in the right job at the right time is a humongous challenge that the HR teams are facing in the current hiring scenario. Any HR needs to: Hire Legal workers, Hire Safe workers and Hire Honest workers
In the more recent times, involvement of individuals from corporate in various crimes have led to increased realization about the value for background screening all employees at all levels in the recruitment process.
How is Employment verification done?
The requesting organization works with an auditing or verification agency who then in turn manually contact the employers over calls/emails to verify employment details. They refer databases like criminal records, driving records, litigation records etc to conduct background screening on the person in question. This process is prone to error, cumbersome, takes weeks to complete and is costly due to the involvement of several parties.
Modern Employment Verification services leverage Automation and AI to speed up the verification process while drastically reducing the prices. They maintain a centralized database of employees submitted by organizations worldwide and use 3rd party API’s, to mine and correlate the data to a candidate’s employment history. Thereby delivering real time verification results at fraction of the cost.
Ready to make background checks an essential part of your hiring?
JobHistory is an Employment Verification platform to conduct safe and secure verification in real time.