For HR leaders, managing employment and income verification can be labor-intensive and disruptive.
Most companies outsource these verifications to large HR tech vendors, including data brokers who dominate the market. Yet many of the larger HR solutions providers don’t have your employees’ privacy top of mind, opening your company up to security risks and liabilities. Additionally, these methods fail to simplify processes for HR departments.
Working with data brokers and major HR tech vendors often means allowing unrestricted access to employee data. Modern businesses require a modern, automated solution to employment and income verification that limits vendor access to data, while reducing the workload for HR departments.
Watch this short video to learn about the pros of working with a privacy-minded HR automation solution, then read on to dive deeper:
Major HR tech put employee and company data at risk.
When your company outsources VOI to data brokers, you’re required to store payroll data in an external database that you don’t manage yourself, allowing vendors access to employee data each pay period.
When working with larger HR tech vendors, HR departments package employee information as flat files, which can contain outdated and erroneous information. These files may also be missing critical information, which means HR departments will still need to field calls from verifiers.
Handing over these massive datasets also means sharing unnecessary and highly sensitive information with the vendors, including SSNs and reasons for an employee’s termination. The large data brokers in the US have hundreds of millions of active and historic payroll records from more than 2 million employers in the US. This broad unrestricted access to data allows vendors to consolidate employee data, which they can then monetize by repackaging and selling it to any third party.
Switching vendors can protect your business.
As new privacy laws in the US are being put in motion to protect employee data, businesses will need to ensure compliance in order to avoid financial penalties. Additionally, as data brokers and large HR vendors store so much sensitive information, they are often targets of data breaches. To protect your business’s reputation and employee data, it’s vital that companies control how data is shared and stored.
Most years, only 1 in 5 employees will need a verification.
There’s no need for companies to continuously share flat files containing sensitive data in order to manage employment and income verification. This model has been used for more than two decades and is common among businesses. Yet, with only 1 in 5 employees requiring verification in a given year, it’s only necessary that businesses share limited, real-time data with verifiers upon request.
A more modern alternative to sharing flat files is API integration. Vault Verify is one vendor that integrates directly with HCM and payroll platforms through real-time, automated API pulls.
This means that when an employee needs a verification, they themselves authorize Vault Verify to extract their most current information from your employee database. Vault Verify will only extract the individual employee’s record, and only report it to a single credentialed verifier. After that, Vault Verify completely removes the employee’s data from our system, so it is never stored, shared, or monetized.
You have a choice in HR tech vendors.
Many companies still allow unrestricted vendor access to employee data, but you have options when it comes to HR solutions. Working with a trusted vendor like Vault Verify can help HR departments maintain compliance and reduce security vulnerabilities.
To see Vault Verify in action, schedule a 30-minute demo.