The Sphere of Employment Verification: Everything you should Know

In the universe of business and industries, employee verification has emerged as a significant need of time. Employers are seeking to verify the employment history, background, and qualifications of job candidates to ensure they are hiring the right people. Similarly, employees are now more aware of their rights and the responsibilities that come with verifying their employability^[1]. All of this has made employment verification a crucial aspect of any hiring process. In this blog post, we’ll explore everything you need to know about employment verification – from its definition, objectives, and benefits to why it is important. Whether you’re an employer or a job seeker, this guide will help you navigate the sphere of employment verification with ease.

What is Employment Verification?

When it comes to hiring new employees, companies need to make sure that they are making informed decisions. It is where employment verification comes in. 

 Employment verification is a process in which an employer confirms the accuracy of information provided by a job applicant. It involves verifying a range of information, including previous employment, job title, salary, and employment dates. It is important because it helps employers make sure they are hiring someone honest and qualified for the job. It also reduces the risk of hiring someone who may have falsified their job history or qualifications.

As a job applicant, it is important, to be honest about your employment history and qualifications to avoid any issues during the verification process.

How to Verify the Employment History of an Applicant?

If you’re a hiring manager or employer, one of your main priorities is to ensure that you hire the right candidate that meets your expectations. You must hire a resource with proven expertise in the past. One way to do this is by verifying their employment history. 

Here are some vital steps you can take to verify an applicant’s employment history:

1. Request a Signed Authorization Form: Before getting in touch with an applicant’s current or past employer, it’s crucial to obtain their signed consent. This form must clearly state the intent of the verification, the information that will be shared or furnished, and the time frame in which the employment verification will take place.
2. Contact the HR Department: The best way to verify an applicant’s employment history is by contacting the HR department of their current or past employer. HR is responsible for handling all employee records and can verify the dates of employment, job title, and salary.
3. Contact the Supervisor or Manager: If HR is unable to provide employment verification, you can also reach out to the applicant’s former supervisor or manager. They may be able to provide more detailed information about the applicant’s performance, job duties, and reason for leaving.
4. Verify Educational Qualifications: It’s important to ensure that an applicant’s educational qualifications align with the job requirements. You can verify their educational qualifications by contacting the school or college they attended.
5. Use a Third-party Verification Service: If you don’t have the time or resources to conduct employment verification, you can use a third-party verification service. They can provide a comprehensive report on an applicant’s employment history, education, and criminal background. Get in touch with a recruitment consulting firm that offers candidate verification services or employee verification services.

By verifying an applicant’s employment history, you can ensure that they have the required experience to perform the job they’re applying for. It also helps to prevent fraudulent resumes and misrepresentations of their work experience. Overall, background screening is an essential part of the hiring process that should not be overlooked.

Is Employment Verification Mandatory?

1. No Official Mandate: There is no law that explicitly mandates employment verification. However, it is a common practice among employers to ensure the accuracy of the information provided by candidates. In some exceptional cases, it is mandatory. 
2. Leaves no Scope for Fraud: Background screening plays a crucial role in preventing fraud and ensuring a candidate’s background matches their stated experience.
3. Verification Letters: In some cases, third-party entities, such as financial institutions or landlords, may require candidates to provide employment verification letters. It is to confirm that the candidate is employed and can pay rent or other financial obligations.
4. Employer’s Discretion: Employers have the discretion to decide whether or not to conduct employment verification as part of their hiring process. However, for certain job roles, such as those in the healthcare industry or government, background checks may be legally required.
5. Liability Protection: Conducting employment verification can also offer employers liability protection in case of any legal issues that may arise due to a candidate’s past employment.

Even though employment verification is not strictly mandatory, it is a crucial step in ensuring the accuracy of candidate information and preventing fraud. It is at the discretion of the employer to decide whether or not to conduct employment verification. Conducting background verification of employees will be helpful. 

Does HR call to verify Employment?

When it comes to employment verification, one question that pops up is whether HR calls to verify employment. Well, the answer is yes, they do. HR departments often call previous employers to verify the details furnished by job applicants, entailing job titles, dates of employment, as well as job performance. But HR is not the only one conducting employment verification. Some companies outsource the process to third-party verification services, such as background check companies.

Employment verification is an essential step in the hiring process. It helps employers verify that applicants have the skills and experience they need for the job and are truthful in their claims. It also helps minimize the chances of fraud and ensures the safety along with security of the workplace.

However, not all employers call to verify employment. Some may rely on other methods, such as checking references or conducting background checks. But calling previous employers is still one of the most common methods of employment verification.

HR does call to verify employment, but it’s not the only method of employment verification. Depending on the company’s policies and procedures, other methods may be used, such as background checks, reference checks, or third-party verification services. Employment verification is an important step in the hiring process, and employers must follow certain laws and regulations to ensure compliance and fairness.

Methods Used in Employment Verification

Have a look at the five common methods used in employment verification:

1. Contacting References: Since most job applications require a list of professional references, one of the most common methods of employment verification is contacting these references to confirm the applicant’s work history, job performance, and character.
2. Checking Employment History: Companies can verify the accuracy of an applicant’s employment history by contacting the HR departments of previous employers or by utilizing third-party employee background verification services.
3. Checking Education Background: Verifying a candidate’s educational background is essential to ensure they possess the required skills and knowledge for the job. It can be done by checking transcripts, contacting the educational institution, or through background screening companies.
4. Criminal Background Check: Performing a criminal background check is another common method of employment verification, which involves searching for any criminal charges or convictions in the applicant’s past.
5. Social Media Check: With the widespread use of social media, many companies now use it as a tool for employment verification. It involves checking applicants’ online presence to confirm their work history, education, and character.

While these are just a few of the methods used in employment verification, it’s essential to note that companies must adhere to all applicable laws and regulations when conducting these checks.

Conducting employment verification ensures that companies hire qualified and trustworthy employees, protect against potential legal issues, and promote a safe and secure work environment. As a job seeker, it’s crucial to provide accurate information and be transparent during the verification process.

What Happens if a Company Can’t Verify Employment?

1. Legal Liability: If the company fails to verify an employee’s employment and it is later discovered that the employee does not have the necessary qualifications or experience, the company may be held legally liable for any damages incurred.
2. Risk of Hiring Unqualified Candidates: Without employment verification, there is a risk of hiring unqualified candidates. It can potentially harm the company’s productivity and reputation.
3. Delay in Hiring: If a company is unable to verify the employment history of the applicant, it may cause a delay in the hiring process. It is because the HR department may have to conduct a more extensive background check, which can take longer to complete.
4. Employment Termination: If an employee is found to have provided false information during the hiring process, it may lead to their termination. It is not only costly for the company but can also be damaging to its reputation.
5. False Claims: Some applicants may provide false information regarding their employment history, job responsibilities, and salary. If a company cannot verify this information, it may lead to hiring an unqualified candidate, putting the company at risk.

Therefore, it is crucial for companies to ensure proper employment verification before hiring any candidate. It can help prevent future legal and financial issues, as well as ensure the company hires qualified and trustworthy employees.

Objectives of Employment Verification

Background screening of an employee is an essential process that helps employers ascertain the suitability of a candidate for a particular job position. 

Given below are some of the main objectives of employment verification:

1. Assess the Candidate’s Skills: Employment verification also helps employers assess the candidate’s skills and qualifications. It is crucial to ensure that the candidate has the necessary knowledge and expertise to perform the job duties.
2. Verify the Candidate’s Employment History: One of the primary objectives of employment verification is to verify the authenticity of the candidate’s employment history. It includes confirming their job title, employment date and rewards received.
3. Ensure the Candidate’s Trustworthiness: By verifying the candidate’s employment history, employers can ensure that the candidate is reliable and trustworthy. It is especially critical for positions that require access to sensitive information or handling of valuable assets.
4. Avoid Falsification of Information: Employment verification helps prevent the falsification of information provided by candidates. By conducting thorough checks, employers can weed out candidates who misrepresent their qualifications or work experience.
5. Foster a Culture of Ethics: Employment verification helps promote a culture of ethics and integrity within an organization. By ensuring that all employees are hired based on merit and qualifications, employers can maintain a level playing field and create a positive work environment.

Benefits 

Here are some benefits of employment verification:

1. Ensures Accuracy – Employment verification ensures that the information provided by the applicant is accurate. It helps to eliminate the possibility of the candidate lying or exaggerating their skills or experience.
2. Minimizes Hiring Risk – Employment verification helps to reduce the risk of hiring the wrong candidate. It helps companies to avoid legal issues, financial loss, and damage to their reputation that may arise if an employee falsifies their employment history.
3. Boosts Productivity – Employment verification ensures that the candidate has the required education and experience to perform the job. It helps in identifying candidates who have the necessary skills and experience to perform well in the job, leading to better productivity.
4. Enhances Safety – It helps in identifying candidates with criminal records or a history of violent behaviour. This information helps the employer to make an informed decision regarding the safety of employees and customers.
5. Builds Credibility – Employment verification builds credibility for the organization. Companies that conduct thorough employment verification demonstrate their commitment to hiring qualified and credible employees, which improves their reputation as trustworthy employers.

Is Background Verification Process Legal in India?

The background verification process is legal in India and plays a crucial role in pre-employment screening. The process helps organizations validate an applicant’s credentials and assess their potential to fit into the company’s culture. According to Indian law, employers can conduct background verification on recruitment candidates.

The government of India has strict regulations in place to ensure that the verification process does not encroach on an individual’s privacy. Employers must get the candidate’s consent before carrying out the verification process. Additionally, information gathered during the investigation should be relevant to the position applied for and kept confidential.

Employers must also be aware of the regulatory norms outlined by the Reserve Bank of India, the Prevention of Money Laundering Act, and the Securities and Exchange Board of India. These regulations apply to companies in the banking, finance, and insurance sectors and require the verification of customers’ identities before opening an account.

The bottom line is that background verification is legal in India and very much necessary in today’s digital age, where false claims and resumes are widespread. Proper background screening is essential for ensuring the safety and security of the workplace and gaining a position of trust.

Why is Background Verification Important?

Employment verification is a crucial element of the hiring process, but it’s not the only aspect that must be taken into consideration. Background verification is vital for the success of your business. Here are six reasons why:

1. To Ensure Workplace Safety: An essential goal of background verification is to ensure that potential employees don’t put co-workers or customers at risk. By checking their criminal records, you can determine if they are a potential threat to the safety of others.
2. To Avoid Costly Litigation: A bad hire could result in legal problems for your company. By checking their employment history, education, and criminal records, you can avoid expensive lawsuits and save the money and time of your company. 
3. To Safeguard the Reputation of the Company: Hiring someone with a questionable past can create negative publicity for your company if they turn out to be a bad choice. Background verification helps you avoid this risk and ensures that only trustworthy individuals represent your organization.
4. To Comply with Regulations: Many industries require background verification as part of their hiring process. Failing to adhere to these regulations could result in government fines and penalties, causing legal and financial problems.
5. To Improve Workplace Productivity: Hiring the right people is essential for the success of your business. By conducting background verification, you can ensure that candidates have the necessary qualifications and skills to perform well in their roles, improving overall productivity.
6. To Hire the Best Candidates: Background verification helps HR departments make informed hiring decisions. By assessing a candidate’s education, experience, and other qualifications, the hiring team can determine if they are the best fit for the job.

To Wrap Up 

Employment verification is a crucial step in the hiring process, as it helps employers ensure that their candidates provide relevant and true information and have a solid work history. Verifying employment history can be done through several methods, such as contacting previous employers directly, using third-party verification services, or checking official documents. While background screening is not always mandatory, it is highly recommended. It can prevent situations like hiring unqualified or dishonest candidates and save companies time and money in the long run. HR departments often make employment verification calls to previous employers to confirm the information provided by candidates on their applications. 

Employment verification is a crucial step that should not be skipped in the hiring process. It helps companies make informed hiring decisions and protects them from hiring unqualified or dishonest candidates. By performing thorough background checks, companies can ensure a safer and more productive workplace.

Read our Article:Meaning and Importance of Employment Verification and How is it done?