Amongst other duties, Human Resource Managers are saddled with one major task - hiring the most suitable candidate for any job opening. This selection process can prove daunting. But it does not have to be so. 
 

As an employer, what you need is an efficient employment verification process. You may not even have to carry it out yourself. RegTech companies like Youverify exist to make employment verification smooth. 
 

At the end of this article, you will understand what is employment verification is, how does employment verification work and how to incorporate it into your business for a stress-free hiring process. 
 

What Is Employment Verification?

Most frequently asked question is what is employment verification and how does employment verification work. Employment verification is the process of confirming that an individual is or was employed at a company they claim to have worked for. It usually involves verifying the individual's dates of employment, job title, and salary information. 

For how does employment verification work?
It works by validating an individual’s work history through cross-checking with employers, official documents, or secure digital databases. The goal is to confirm details such as job title, dates of employment, status, and sometimes salary history. 
 

The process of employment verification typically involves contacting the applicant's former employer and asking them to provide information about the applicant's employment history.

Why Should You Carry Out Employment Verification?

When collated, this information can be used for a variety of purposes. They include things such as background checks for job applications, determining eligibility for loans or other financial products, or government benefit programs. In this article, we will focus on how employment verification can be used for job applications. 
 

The information is then used to make informed hiring decisions. Similarly, the information gathered can also help ensure compliance with various legal and regulatory requirements.
 

Who Can Legally Conduct Employment Verification?

 Those who can legally conduct employment verification typically fall into any of the following categories:  

•  A Prospective employer(s)
•  A background check company
• A verification service offered by the applicant's former employer

Why is employment verification important?

Employment verification is important for several reasons, including

• Confirming the accuracy of a job applicant's resume or application.
• Ensuring that the applicant has the necessary skills and experience for the job.
• Protecting employers from potential liability and ensuring compliance with employment laws and regulations.
• Verifying an individual's eligibility to work in the country.
• Preventing fraudulent job applications and identity theft.

Overall, employment verification helps employers make informed hiring decisions and maintain a safe and compliant workplace.

Related Read: What Information can be released for employment verification

How Can You Perform Employment Verification?

There are several ways to conduct employment verification. Each method has its advantages and disadvantages. Some are more reliable and less stressful than others. Some of these methods include:

1. By means of direct personal contact: 

This involves contacting the previous or current employer directly by phone, email or mail to confirm the employment details of the applicant. This is a common method used by employers to verify an applicant's employment history. 

While this method gives the prospective employer the opportunity to ask questions directly, it has one major disadvantage. It is very time-consuming, and may even incur some expenses as the case may be.  

2. By using reliable third-party verification services: 

Many companies offer different verification services. This includes competent RegTech Companies. Youverify for instance, offers KYC, KYB, and other similar services that can be used to verify an applicant's employment history. 

These services typically charge a fee and use various methods to verify the information, such as contacting the applicant's former employer, checking public records, or using other databases. But it is definitely worth it in the end.  

3. By Submitting a written verification: 

Some employers may require written verification of employment. You could do the same too. It involves requesting an employment verification letter from the applicant's former or current employer confirming their employment history. This can be particularly useful for applicants who are currently employed and may not want their current employer to receive a phone call or email from a potential employer.

4. Online databases: 

Another employee verification method is the use of online databases. They can provide employment and income verification services for you. But before you proceed with this method, ensure that the database you choose is a reliable one. 
 

 5. Personal references: 

Employers may also ask applicants to provide personal references who can vouch for their employment history. Despite the ease of use, this method is less common than the others, and may not be as reliable.

Related: How to Verify Employment

What Is The Difference Between Employment Verification and a Reference Check?

Employment verification typically involves confirming a job candidate's past employment, dates of employment, job title, and sometimes salary, by contacting previous employers or reviewing employment records.

On the other hand, a reference check involves contacting individuals who can speak to a candidate's character, work ethic, and job-related skills, typically provided by the candidate as personal or professional references.

In summary, employment verification confirms a candidate's work history, while a reference check provides insight into their character and abilities from the perspective of people who have worked with them in the past.

What Is A Job Verification Letter?

A job verification letter or employment verification letter is a document provided by an employer that confirms an individual's employment status and other details, such as job title, employment dates, and salary. It may be required by a third party, such as a financial institution or a government agency, to verify the individual's income or employment status.

What Do You Need For An Employment Verification Exercise?

The documents needed for employment verification can vary depending on the employer or the method of verification. Some common documents that may be requested to verify employment include 

1. Employment history or resume: 

It is common practice to request a resume or employment history of every prospective employee. that lists the applicant's previous employment, job titles, dates of employment, and job duties. This can be used to confirm the information provided by the applicant.

2. Requesting W-2 or pay stubs: 

W-2 forms also referred to as pay stubs or pay slip serves as a document to confirm candidates' claim of employment through the payment they received. If you decide to go with this method, it is best you request a recent pay slip. 

3. Contact information of previous employers: 

Employers may request contact information for previous employers so they can verify the employment history and details directly with the former employer.

4. Release forms: 

As an employer, it is necessary that your prospective candidates have their release forms handy. This will save you from undergoing a tasking process only to have your employment offer rejected because candidates are still under legal employment.  This document will make contacting previous employers or accessing other employment-related information easy.

 5. Social Security number: 

Social security number or identification number (as it is called in some climes) makes it possible to have a database on a particular period over a long period of time. It can prove very helpful in confirming the employment history and earnings of a prospective employee. 

Recommended - What are the Acceptable Employment Verification Documents?
 

Bottom Line

Employment verification is a dynamic process. It is ever-changing and new methods have been introduced to ensure its efficiency. The method you use will determine the outcome you get. It is best to use third-party companies that deal with not just verification but compliance as well. 

Youverify offers reliable know-your-employee solutions to verify your employees. book a demo today to get started.