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Employment Verification Common Mistakes and How to Avoid Them

Published: June 6, 2024 by Troy Hupp

Employment verification fulfillment is an essential employer process and can involve responding to requests from third-party verifiers such as banks, credit or government agencies and other organizations. Responding to employment verification requests can be a hassle for employers, taking up valuable time and resources, but also requiring attention to detail and a thorough understanding of the regulations. However, despite its complexity, employers must respond to employment verification requests promptly and accurately to avoid potential legal and financial consequences. In order to conduct this in a flawless manner, they also need to pay attention to common employment verification mistakes and take proper steps to prevent them. 

What Are Employment Verification Common Mistakes?

When responding to employment verification requests, employers tend to rush through the process or fail to stay up to date on changing laws. This exposes them to risks and serious consequences, making it important to pay attention to employment verification common mistakes and take steps to avoid them.

Failing to Verify Employment History

One of the employment verification common mistakes is overlooking employment history, which is a critical step in the employment verification process. It is essential to ensure that the information provided by the employee matches the employer’s records. Verifying employment history also helps to identify any gaps or inconsistencies in the employee’s work history. Therefore, employers should take time to confirm important details such as the dates of employment and job titles.

Providing Incomplete or Inaccurate Information

Another employment verification common mistake is providing insufficient or imprecise information leading to delays in the verification process as well as legal and financial consequences.

However, employers must provide complete and accurate information when responding to employment verification requests. To prevent this mistake, they should ensure that they have all the necessary information before responding and double-check the information they provide to avoid any discrepancies.

Failing to Obtain Employee Consent

Responding to employment verification requests without obtaining employees’ consent is one of the employment verification common mistakes that can result in serious consequences. Not doing so can expose employers to non-compliance with the Fair Credit Reporting Act (FCRA) and potential legal consequences.

In addition to this, employees have the right to know what information is being shared and with whom. Obtaining consent provides employees with control over their personal information, but also creates a positive work environment where employees feel their rights are respected and protected. Finally, when employees are aware of the information being shared, they can provide corrections and clarifications and reduce the risk of sharing inaccurate information.

Failing to Maintain an Organized Approach

Practicing inconsistent employment verification is one of employment verification common mistakes that can pose risks to employers and their organizations. On the other hand, if they have a uniform approach to employment verification, employers can ensure that all requests are handled in the same way, regardless of the individual employee or requestor. This way, everyone involved in the verification process understands what information is being shared, who has access and what procedures must be followed.

Furthermore, different states or industries may have specific requirements or procedures for employment verification, and having a uniform approach can help employers ensure that they are compliant. Finally, with standardized procedures in place, they can streamline the employment verification process, thus reducing the time and resources required to respond to employment verification requests.

Delaying a Response

Employees have more choice than ever when it comes to who they work for. The uptick in remote and hybrid working options has removed geographic boundaries that previously restricted employment options, meaning it’s more important for employers than ever before to provide a great environment to retain top performers. Responding to verification requests in a timely manner is a critical responsibility than can affect employee satisfaction. Unnecessary delays in an employer’s response could have a negative impact on major life transactions, setting a bad tone for the employee.

Furthermore, employers may have a legal obligation to respond to employment verification requests promptly if required by a state or federal government agency. Failing to respond could result in consequences, such as fines or legal action.

Safer and Smarter Employment Verification

Given its importance, employers must approach employment verification with diligence and attention to detail. Employment verification common mistakes can lead to legal and financial consequences, making it essential to take the necessary steps to avoid them.

While the employment verification process is important, it is also complex, requires a fair amount of administrative work, and can take up precious time. However, if employers outsource this process, they delegate the time-consuming administrative tasks to a team of experts who eliminate the risks involved in the hiring process to a great extent. There are various benefits that employers can obtain with automated employment verification, such as:

  • Obtaining accurate and complete employment verification reports;
  • Filtering irrelevant information and focusing on the relevant details for informed hiring decisions;
  • Eliminating employment verification common mistakes that increase the risk of a bad hire and compromise the safety of the workplace;
  • Providing an objective look at the character of a prospective hire while withholding details that might cause unconscious bias;
  • Preventing the verification before prospective employees give written consent;
  • Ensuring standardized employment verification for each employee level of an organization;
  • Helping companies stay up-to-date with regulatory changes.

Employers should take steps to prevent employment verification common mistakes, make more informed decisions, establish a more qualified talent pool and devote their time and energy to the work that matters to their company.

Automate employment verification to enhance the process for all parties involved and stay current with relevant regulations with built-in compliance tools, updated in real-time.

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About Us

The Experian Services Insights blog focuses on providing updates and solutions for HR teams, business owners, tax pros and compliance officers looking to navigate complex regulatory landscapes while optimizing their workforce management processes. Some important topics include payroll tax, unemployment, income & employment verification, compliance, and improving the overall employee experience.