According to a survey conducted by StandOutCV, 42.5 million (55%) Americans lie on their resume to get a job. This can be extremely detrimental to organizations, as candidates with fraudulent intentions can risk the safety of the company’s confidential data.

Additionally, unfit candidates can also be a liability to the organization’s existing employees. Therefore, firms must take measures to evaluate the applicant’s work and criminal history through employment verification.

What Is Employee and Employer Verification?

Employee verification or employment verification is the process of confirming a candidate’s prior work details, such as work history, current job status, educational background, and skills. By conducting this assessment, employers can ensure they hire the right person for the role.

Companies that fail to conduct employee verification end up hiring an unfit individual. This leads to a loss of time and resources and can even compromise the safety of other workers. To avoid this situation, companies can take advantage of screening services that verify candidates.

Similarly, businesses can also verify employers to reduce financial risks when partnering up with another corporation. Employer verification system also assists businesses in identifying an applicant’s employer to ensure their business is not targeted for fraud.

Implementing this process is extremely important for businesses looking to fill a senior position. This is because a managerial-level employee can access the firm’s most confidential data, which is why it is imperative to conduct a comprehensive assessment before hiring high-level executives.

6 Reasons to Conduct Employee Verification Process

Employee verification is becoming more popular in the workplace. A survey by PBSA (Professional Background Screening Association) reported that 73% of organizations have a documented policy for background screening procedures.

There are multiple reasons why companies are taking this initiative, including the following:

Prevent Data Loss

After joining a corporate firm, the newly hired employee can access confidential information, such as the firm’s assets, operational processes, and financial details. An untrustworthy employee can misuse this data or share it with competitors. As a result, the firm can suffer adverse consequences, such as:

•  Loss of customer trust
• Lawsuits filed by disgruntled customers
• Reputation damage
•  Financial loss
• Risk of business closure

To protect the company from data loss, board directors hire background screening services to verify employer and employment details of the finalized candidates.

Reduce Hiring Errors

HR professionals take measures to check the accuracy of information mentioned on the candidate’s resume. Unfortunately, these individuals lack the time and resources to conduct extensive background investigations. Due to this, companies can risk hiring an unfit or fraudulent candidate.

This can be detrimental to any organization. In fact, research shows that a company spends $240,000 in hiring an employee, and a bad hire can cost up to 30% of the employee’s annual earnings. Therefore, checking the prospect’s credentials before making hiring decisions is essential.

Improve Workplace Safety

Employee verification processes optimize workplace safety. With these checks, companies can rest assured that they employ a suitable candidate with no criminal history. These evaluations can certify that the business operations are not exposed to untrustworthy candidates. It can also ensure that the existing employees are not susceptible to risks and liabilities.

Identify the Candidate’s Eligibility to Work in the US

Companies can determine the candidate’s eligibility to work in the US through verification checks. For instance, organizations can check the applicant’s immigration status through a comprehensive evaluation.

Certify Culture Alignment

Organizations must hire candidates that are right for the role and add to the company’s culture. With employment verification, businesses can evaluate the culture of the applicant’s previous organizations. This can provide insight into the environment the individual has worked and thrived in. Companies can then hire individuals whose experience aligns with their organization’s culture.

Provides Confirmation of Salary

Employee verification procedures can inform companies about the applicant’s previous salary. This confirmation is especially important for candidates applying for senior-level positions. With verification of the individual’s previous income, organizations can ensure they do not over-pay the worker or provide a lowball offer to a good candidate.

How to Conduct Employee Verification?

Before starting the employment verification process, organizations must notify the candidate in writing that the company will conduct a background check. Taking consent is critical before starting the hiring process, as it protects the organization from legal repercussions.

Employment verification itself can be conducted by third-party services. The service providers can equip organizations with a comprehensive report on the candidate. The information covered by these checks may include the following: 

• Employer Status
• Salary Slips
• Criminal records
• Job performance assessments
• Roles and responsibilities
• Job title
• Contact details

Wrapping Up

It is common for job applicants to exaggerate skills or work experience on their resumes to secure employment. Therefore, organizations must conduct thorough research and run background checks to learn whether the applicant is eligible for the role. By verifying employee information, companies can hire the right individual and create a safe workspace.