Meaning and Importance of Employment Verification and How is it done?

Never Stop Learning

 Feb 07, 2023

Meaning and Importance of Employment Verification and How is it done?

If you have a job opening in your company and you are looking for the best applicant to fill it, you’ll undoubtedly get a lot of resumes in response to your posting. Why would someone use a resume? The qualifications, experience, and skills required for the position can be found on a resume by an employer. Did you know that over 50% of HR managers have found dishonest resumes? What can you, as an employer, do to ensure that the individual you recruit has all the credentials and abilities listed on their resume? You can look into their former employment history to confirm their claims. Employment verification is the name of this procedure. The meaning, importance, and method of employment verification will be covered in this article.

Introduction

Employment verification serves as evidence of a person’s present or previous employment situation. It demonstrates whether the applicant possesses the expertise and credentials necessary for success in the position.

Additionally, it aids in exposing-

Importance of Employment Verification

The HR manager calls former employers to verify employment when a candidate is being considered for a certain position. Other information, including educational records, criminal background checks, identity checks, and more, are also aided by employment verification. These tests help the companies in conducting a thorough assessment of a candidate’s abilities and qualifications as well as organisational fit.

The main objective of this technique is to stop employment fraud[1]. You may make an intelligent and assured selection by utilising employment verifications as a component of an extensive pre-employment screening procedure. Keep in mind that you want to fill each position with the most dependable, skilled individuals possible. To ensure the accuracy of your candidate’s work information, including periods of employment (start and finish dates) and job title, Employment Verification will make direct contact with current or past employers. It is just too crucial for your business to delay, assign an untrained worker, or ignore screening criteria and regulations.

Importance of Employment Verification

Now that we have a better understanding of what employment verification means let’s move on to its importance. It is crucial for both employers and employees since it guards against data breaches and exploitation of an individual’s personal information. Let’s learn more about the significance of using employment verification in detail.

  1. About 50% of all candidates fabricate their resumes. At least 50% of a recruiter’s decision to hire someone will be based on the information provided on the candidate’s résumé; it is crucial to conduct a complete background check before making the decision. When you use employment verification to identify applicants who misrepresented their qualifications, you can deal with them right away and save time overall.
  2. To prevent any negative effects on the hiring manager, candidates occasionally continue to present an exaggerated description of their prior employment or something with minimal details. However, past employers frequently have access to the most important information about your potential applicant. Perhaps, that would have been the reason behind those exaggerated and delayed responses. But it is crucial for a business to be completely aware of who they are recruiting and to carry out a full employment verification.
  3. After examining data gathered from a variety of employers who had previously experienced workplace violence at some time, it is clear that most of these incidents could have been prevented by conducting personality tests on prospective hires. Therefore, you must execute a proper scrutiny process, either on your own or with the help of a trained organisation with the necessary resources, to avoid facing such risks. Wouldn’t it be worth it? 
  4. One of the main concerns a recruiter may have is the possibility that an employee may leave their business and join a rival in exchange for money or that they will use confidential material against the company or for their advantage. Without an appropriate screening process or employment verification, a company faces the danger of experiencing significant losses. In other words, failing to research candidates thoroughly and hiring without care can lead to legal responsibility.
  5. Employment screening and verification aid in reducing employee turnover brought on by dismissals for theft, fraud, etc. Verification helps in verifying that the organization’s and potential hires’ values are in line. Values that are more closely aligned improve retention.
  6. Even with the greatest internal hiring procedures, errors can still occur. Every employer will acknowledge making poor hiring decisions. Pre and post-employment verification increases the hiring process’s effectiveness and helps reduce/eliminate hiring errors.
  7. Customer relationships may suffer from poor hire interactions with customers. The performance and earnings of a corporation are eventually harmed by poor customer connections.

How is Employment Verification Conducted?

After reading extensively about the purpose and significance of job verification, let’s explore the process in detail. Firstly, you must make sure:

  • The candidates must be made aware that employment verification is being conducted.
  • Inform the applicant in writing about the background investigation. Along with the employment application, this notification is also required.
  • The organization’s hiring rules and standards must declare whether employment verification is required in their hiring process.
  • Obtain the applicant’s written permission before doing an employment verification.

Another reliable method of reference checking is to conduct a full employment verification. Verifying an employee’s employment entails getting in touch with the candidate’s past supervisors, project leaders, or even co-workers. It will enable a potential employer to get a comprehensive image of your previous employment and determine whether you would fit in with the organisation. Such discussions aid in determining the candidate’s professional abilities, strengths and limitations, and work ethic, allowing a good evaluation of the candidate’s compatibility with the organisation.

A former employer’s appointment or resignation letter serves as official documentation of your previous and current employment. This letter gives detailed data on a variety of topics, including information about the candidate’s previous employers, including the name, contact information, address, and email of the business, employment duration (start and end dates), the candidate’s job post, duties, and more.

The hiring manager also accepts pay stubs and wage slips as evidence of prior employment throughout the candidate verification process. It aids employers in appreciating the value of candidates.

Following that, businesses search datasets (criminal records) for any evidence of unethical activities. To confirm your degrees and certifications, they then look through your educational records. Finally, businesses will confirm your address. They occasionally even assign representatives to actual locations to verify a candidate’s address. However, employment verification is carried out in different methods by various Indian businesses. The companies have two options for completing employment verification: they can do it themselves or work together with a reputable employment verification business.

Conclusion

Employment verification processes are a crucial component of the pre-employment selection process since they show whether your applicants are reliable and a perfect match for the position. Since it enables companies to confirm the data provided on candidates’ resumes and applications and to check the applicants’ employment history. Employment verification may also show fabricated work titles, breaks in employment, or fake employment claims.

Read our Article: What are the Right Ways to Explain Employment Gaps in an Interview?

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