What is Employment Verification?

Verifying a candidate’s previous employment history is a critical step in the hiring process. Employment verification provides employers with valuable insights into candidates’ work experience, job performance, and reasons for leaving previous roles. This article delves into the importance of employment verification, the steps involved, and best practices for conducting it.

Employment verification is the process of confirming the accuracy of a candidate’s employment history as presented on their resume or during interviews. This involves contacting previous employers to verify the job titles, dates of employment, roles, responsibilities, and in some cases, reasons for leaving. The purpose is to ensure the candidate has the experience and qualifications required for the role and that their claims are honest and verifiable.

This step is especially crucial for senior or high-responsibility roles where experience and proven expertise are critical for success.

The significance of employment verification lies in its ability to safeguard the company from potential risks. Here are several reasons why this process is critical:

• Preventing resume fraud: One of the main reasons for conducting employment verification is to prevent candidates from misrepresenting their work experience. Inflating job titles, falsifying responsibilities, or extending employment dates can mislead employers about the candidate’s true capabilities.

• Ensuring job fit: Employment verification helps recruiters confirm whether a candidate has the required experience for the role. For roles requiring specific skills or a certain level of seniority, employment verification ensures that the candidate’s background aligns with the job requirements.

• Reducing turnover: Hiring candidates based on inaccurate employment histories can lead to mismatches between their capabilities and job expectations, increasing turnover rates. Proper verification reduces the risk of hiring people who may not be the right fit.

• Protecting the company’s reputation: Employing individuals with unverifiable backgrounds or undisclosed reasons for leaving previous roles can negatively impact the company’s reputation. Employment verification ensures that organisations hire individuals with a proven, reliable work history.

• Assessing candidate’s reliability: Beyond verifying credentials, employment verification also helps evaluate a candidate’s stability and reliability. For example, frequent job changes or unexplained gaps in employment can be indicators of potential issues such as lack of commitment or performance problems.

Therefore, thorough employment verification is essential in mitigating these risks and ensuring the company hires competent and trustworthy employees.

Employment verification involves several steps that HR professionals and recruiters follow to ensure the accuracy of a candidate’s work history. The process has the following stages:

1. Gathering candidate information and consent 
Conducting effective employment verification begins with obtaining the job seeker’s consent. It is a crucial step as it ensures compliance with legal requirements and respects the candidate’s privacy. Next, collect the necessary details from the candidate. This includes the job titles, employment dates, company names, and contact information for previous employers. In some cases, candidates may provide references or letters of recommendation.

2. Contacting previous employers
Once the candidate’s employment history has been gathered, the next step is to contact previous employers. This is typically done through phone calls or emails directed to the HR department or the candidate’s direct supervisor at the former company. Some companies also use third-party services or automated systems to handle the communication process.

3. Verifying employment details
During the communication, the recruiter or HR professional verifies key employment details such as job title and description of responsibilities, dates of employment (start and end), full-time or part-time status, and reason for leaving (if applicable). It is important to ask consistent, standardised questions to avoid potential bias and ensure the verification process is fair and transparent for all candidates.

4. Documenting and reviewing information
Once the information is obtained, it should be documented and analysed to ensure it aligns with the details provided by the candidate. The employer should investigate discrepancies between the candidate’s claims and the verified information — to determine whether they are due to misrepresentation or an innocent mistake.

5. Follow-up (if necessary)
In some cases, additional follow-up may be required if the initial contact fails to provide all necessary information. It’s also important to give the candidate a chance to explain any discrepancies or gaps in their employment history before making a final decision.

Note: The employment verification process can vary depending on the company’s policies and the role. For instance, some employers may only verify the most recent job, while others might check the entire employment history. Additionally, the level of detail sought can differ; some employers may simply confirm job titles and dates, while others might delve deeper into job performance and reasons for leaving. This thoroughness helps assess the candidate’s reliability and suitability for the role.

Employment verification is not without its challenges, especially in today’s global business environment:

• Incomplete or inaccurate records: Some companies may not maintain detailed records of former employees, especially smaller businesses or those that have undergone mergers or closures. Thus, obtaining accurate information can be difficult.

• Delays in response: Former employers may not respond promptly to verification requests, leading to delays in the hiring process. This can be particularly challenging in fast-paced industries where hiring decisions must be made quickly.

• International verifications: Verifying employment in global markets can be more difficult due to differences in record-keeping, local regulations, and language barriers. HR teams may need to work with specialised providers to manage these complexities.

• Discrepancies in information: A mismatch between the information provided by the candidate and that obtained from previous employers may be a challenge. These can arise for various reasons, such as honest mistakes, differences in job titles, or intentional falsification by the candidate.

• Time and resource-intensive: The employment verification process can be time-consuming and resource-intensive, especially for companies with high hiring volumes. Coordinating with multiple previous employers, following up on unresponsive contacts, and ensuring accuracy can strain HR resources.

To mitigate these challenges, we recommend the following strategies.

To ensure the employment verification process is thorough, accurate, and compliant, HR professionals and recruiters should follow these best practices:

• Standardise the verification process
Consistency is key when verifying employment history. A standardised process helps reduce bias and ensures that every candidate is evaluated fairly. Standard procedures also make comparing information across candidates and roles easier, streamlining decision-making.

• Use third-party services (when necessary)
In high-volume hiring or for roles requiring international employment verification, it may be more efficient to use third-party verification services. These providers specialise in background checks and can ensure timely and compliant verifications, particularly in regions where employment records may be difficult to access.

• Respect privacy and confidentiality
Employment verification involves handling sensitive personal information. It is crucial to respect the candidate’s privacy by keeping the data confidential and only sharing it with authorised personnel. Additionally, information should only be used to verify employment and make informed hiring decisions.

• Be aware of legal restrictions
Employment verification processes are subject to local and national laws, varying significantly by country. For example, in Europe, employment verification must comply with the General Data Protection Regulation (GDPR). Ensure HRs are familiar with and follow the relevant legal frameworks to avoid potential lawsuits or regulatory penalties.

• Evaluate discrepancies fairly
Discrepancies in employment verification results do not always indicate dishonesty. Gaps in employment, minor inconsistencies in job titles, or differences in employment dates could be due to factors such as company restructuring or a misunderstanding. It is essential to evaluate discrepancies fairly, allowing candidates to explain before making any hiring decisions.

Ultimately, a thorough and compliant employment verification process protects the company, promotes transparency, and contributes to building a trustworthy and skilled workforce.