When companies receive requests to verify employment for candidates or current employees, it can be challenging to understand exactly which information is necessary and how best to respond. By outsourcing this task to a third-party provider, companies can avoid compliance issues while saving both time and resources.
Time-Saving
Employment verification can be an arduous and time-consuming task that’s costly for HR teams, so using a third-party verification service could save companies both time and money by quickly providing accurate, up-to-date information quickly and efficiently. Using these services saves HR teams the hassle of having to reach out directly to former employers themselves for verification purposes.
People teams are frequently required to conduct background checks of current and past employees for various purposes, from loan applications to background checks (source: https://www.business.com/articles/what-is-criminal-background-check/ From loan applications to background checks, departments can become overwhelmed with requests that require them to verify employee data accuracy – this may take up valuable resources within the department when dealing with large organizations that need multiple employees verified simultaneously.
At times, HR teams must verify more than just dates of employment when verifying information, but also job titles and salary figures. This data may be used for various purposes including background checks during hiring processes; eligibility checks for loans or other financial products; or verifying income to qualify for government benefit programs. Collecting and disseminating this data can take significant time when dealing with tight deadlines.
Third-party services can save team’s tremendous time by taking on all their requests for them and providing real-time reports with results of these reports. This enables HR professionals to focus on other pressing tasks while simultaneously helping reduce errors that might otherwise arise in data provided.
Confidentiality
Verification is a standard part of the hiring process, involving reaching out to previous employers of an employee to confirm if and for how long they worked there. Unfortunately, Third Party employment verification companies and their process can be time consuming and costly for both parties involved – saving both parties both money and time by outsourcing this task to third-party services that specialize in such processes. These services offer accurate verified people quickly saving both parties both money and time in this way.
Companies conducting verification must abide by certain federal regulations when conducting checks. This ensures they don’t violate privacy laws and find themselves subject to employee lawsuits over disclosure of private data, as well as avoid making false statements and potentially tarnishing former employee’s reputations.
A verification service handles all the details of background checks for in-house teams, freeing them up to focus on more important tasks. This also frees up team members’ time so they can complete other projects uninterrupted.
Third-party verification systems allow for quick re-verifications when necessary and save both internal HR departments and client’s time by working request by request. It provides an efficient means of verifying employment while also guaranteeing all requests are handled fairly and in compliance with regulations.
Compliance
Employers often find themselves needing to verify the employment information of current and past team members for various reasons – from hiring new workers to verifying income for loan applications. Unfortunately, these requests can become an unnecessary distraction from daily operations of a company; also it can be challenging knowing what information needs to be shared internally with whom. Outsourcing verification services is one way for employers to save time while remaining focused on more critical tasks.
An effective verification service provider will have all the systems, organization and security practices in place to efficiently execute this job. They should be able to store data safely while quickly providing access when requested by employers; their request processing capabilities also will save significant amounts of time for employers.
As per the Fair Credit Reporting Act, companies conducting employment verification must make certain they have a permissible reason for doing so; otherwise they risk violating it and being subject to penalties under FCRA. An employee could potentially violate this act if their data were shared with third parties for purposes unrelated to employment, such as credit checks or making business decisions without their knowledge and approval.
Prior to issuing a loan, lenders typically contact an employee’s employer in order to verbally verify their employment status. This requirement is particularly common among mortgage applications; it allows lenders to ensure the applicant can afford to repay the debt. Therefore, lenders require detailed information on an employee’s salary and job duties in order to assess whether additional debt burden can be handled comfortably by them.
An employment verification service can assist lenders in meeting these criteria by providing an accurate picture of a borrower’s financial circumstances. Such services offer information such as employee salaries, work history with the company, positions held previously as well as debt-to-income ratio – essential pieces of data when it comes to deciding whether a person qualifies for loans and the terms associated with them.
