Employment verification plays a vital role in the modern business landscape. Today, organizations are increasingly relying on professional agencies to verify the authenticity of applicants during loan approval procedures. This underscores the importance for businesses to be acquainted with third-party employment verification companies that specialize in employment verification, especially when internal HR departments face excessive workloads. Verifying an applicant’s employment history is essential to assess their credibility, contributing to sound lending decisions.
How Do Companies Provide Employment Verification Services?
Employment verification is a crucial process. When companies need to verify employment, they turn to verification of employment (VOE) vendors to access the needed employment data. These reliable companies have the capability to transfer employee data to the necessary party, whether it’s a loan officer or a government entity.
What Goes Into Employment Verification?
As mentioned, employment verification is used by lenders, landlords, and other organizations to confirm the employment and income details of an individual. It helps verify the accuracy of information provided by an applicant or employee. The specific information required for employment verification can vary depending on the purpose of the verification and the requesting party, but typically, the following information is involved:
- Employee Information:
- Full name of the employee/applicant.
- Social Security Number (SSN) or Employee Identification Number (EIN).
- Position or job title.
- Dates of employment (start and end dates, if applicable).
- Current employment status (active, terminated, on leave, etc.).
- Employer Information:
- Company name.
- Company contact information (address, phone number, email).
- Name and title of the person verifying the employment.
- Verification Details:
- Employment start and end dates.
- Employment status (full-time, part-time, temporary, etc.).
- Salary or hourly wage.
- Work schedule (e.g., regular hours, shifts).
- A signed release form or consent from the employee/applicant allowing the employer to provide verification information to a third party.
- Income Verification (Optional):
- Total annual income.
- Any bonuses, commissions, or other sources of income.
- Frequency of payment (monthly, biweekly, etc.).
- Reason for Verification:
- The purpose of the verification, whether it’s for a loan application, rental application, background check, etc.
- Contact Information for Verification:
- Contact information for the person or organization requesting the verification, in case there are further questions or clarifications needed.
It’s important to note that employers need to handle employment verification with caution and ensure they are following legal regulations and guidelines, such as those outlined by the Fair Credit Reporting Act (FCRA) in the United States. Providing accurate information and respecting the individual’s privacy rights are key considerations during this process.
How Are Personal Data Sections Utilized in Employment Verification?
Companies that do employment verification rely heavily on personal data provided by both the potential employee and previous employers. But what personal data is used in this process? And how are these data protected?
What Personal Data is Used in an Employment Verification Process?
The verification process includes basic data such as the potential employee’s name, employment history, and educational background. These data sections are typically verified by employment screening resources like an employment screening service.
By leveraging a larger employee database, organizations often verify employment data, such as employment status, from data brokers as sources. In many cases, companies use a VOE vendor or a specific VOE provider to do these verifications. Other data that might be used include the potential employee’s asset account or income verification.
How Is Personal Data Protected During Verification?
Employers and background check services are required to obey the guidelines set forth by the FCRA when collecting, using, and disposing of personal information obtained during the screening process. This means the data must be stored carefully and destroyed when no longer necessary.
To ensure privacy, companies should make sure they are using services that are FCRA compliant, follow a corporate cost control mechanism, and use professional reference checks in addition to employment verification.
The Vault Verify Advantage
Vault Verify is your HR automation solution. We make it easy to outsource crucial HR tasks like employment and income verifications, I-9 administration, unemployment claims, and more. When you work with us, you get full-picture custom reporting, 24/7 online access with top-rated encryption, and free API integration with payroll/HRIS systems. And of course, we’re committed to safeguarding your sensitive data every step of the way. We will never store, re-sell or monetize your employee data beyond the consented verification process.
Vault Verify’s combination of cutting-edge tech and world-class support provides all-in-one protection and optimization of the most valuable asset in your business – your workforce. Request a demo today.
Is employment verification necessary?
Yes, employment verification is necessary. It allows HR departments to confirm the accuracy of applicants’ work histories and the information they provide, ensuring that candidates have the qualifications and experience required for the job. Additionally, it helps employers meet legal requirements and maintain the integrity of the hiring process.
What is acceptable for employment verification?
Employment verification typically requires providing documentation that validates your employment history. The acceptable forms of verification may vary depending on the employer or organization requesting the information. Commonly accepted documents for employment verification include offer letters, employment contracts, pay stubs, and letters of recommendation from previous employers. Additionally, some employers may require you to fill out an employment verification form or provide contact information for HR or payroll personnel who can confirm your employment details.
Who can verify employment?
Employment can be verified by various entities, depending on the purpose and context. Generally, employers themselves can verify employment by providing a letter or form confirming the dates of employment, job title, and possibly the employee’s salary. In some cases, third-party agencies or background check companies may be engaged to verify employment details. Additionally, landlords, financial institutions, and government agencies may also request verification through official channels. It is common for employers to have a designated HR department or individual responsible for providing employment verification information.