A process a majority of individuals will go through during the course of their lives is employment verification. Verification is the process certain entities, such as employers, background screeners (pre-employment screeners), landlords and creditors, use to confirm a person’s employment history and status. During this process, the verifier will contact the individual’s current or previous employer(s) to authenticate their information, such as job title, dates of employment, salary and similar information.
Employment verification is common for major life events, from buying a car to applying for a job. If certain parties are asking to verify an employee’s employment history, our guide will help unpack all you need to know that goes through this process, from who can request data to how long verification requests take and more.
Employment Verification During Big Life Events
There are various instances where an employer may receive an employment verification request. These significant life events for employees might include:
- Job applications: When applying for a job, a prospective employer will often want to verify employment history to ensure the information provided on an application is accurate and aligns with the skills and responsibilities of the role for which they’re applying.A former employer may receive a request to verify given information.
- Mortgage applications: One of the first factors a mortgage lender will look at when an employee starts the home hunting process is employment history and salary information. They want to verify a stable income to meet monthly mortgage obligations.
- Rental applications: Similar to mortgage lenders, landlords often conduct verification requests to ensure stable employment and income to pay rent regularly.
- Credit applications: From credit cards to personal loans, there are various types of credit someone might apply for in their lifetime. Credit lenders often submit an employment verification request to assess financial stability and ability to repay a loan or credit.
- Car loan applications: When purchasing a new car, a consumer may need to apply for a car loan. Auto loan lenders are another party who regularly run employment verification requests to ensure stable income and employment to repay a car loan.
- Government assistance programs: Various government assistance programs, such as social welfare benefits, unemployment benefits or housing assistance, may require employment verification to determine eligibility and benefit amounts.
There are numerous parties who request employment verification for significant life events, from buying a home or a car to applying for a government assistance program. Knowing why you might receive a verification request for a current or former employee can help you stay prepared and understand how the process works.
Why Do Companies Need to Verify Employment?
There are a few reasons why companies need to verify employment. However, the reasons often differ based on the type of company requesting employment information. For example, creditors who provide loans and lines of credit, such as a mortgage or credit card, request employment information to ensure active employment and stable income to meet loan or credit obligations. These parties want to ensure an applicant has enough money to pay a loan or credit amounts in full and on time.
On the other hand, parties like employers considering new employment might request employment background to cross-check information provided on a job application. Prospective employers want to ensure an applicant is providing accurate information and have the necessary skills and experience to fill the role they’re applying for.
When it comes to the verification process, parties might contact previous employers via phone or email, asking for employment information. Or, they might use a third-party verification fulfillment service like Experian Employer Services to verify employment.
Who Can Request Data and How Is It Used?
Various entities can request data for different purposes. Common parties conducting employment verification screenings regularly include creditors, landlords, government agencies, insurance agencies, prospective employers and courts.
How employment information is used also varies depending on the party requesting information. For example, employment information can be used to determine child support or alimony during legal proceedings like a divorce or child custody case. Conversely, insurance companies may request employment information to assess the risk of insuring an individual.
The Fair Credit Reporting Act (FCRA) is a piece of federal regulation that protects consumers by regulating how credit information is collected, disseminated and used. The FCRA protects consumers during employment verification requests by requiring consent before a verification screening. At Experian Employer Services, we ensure compliance to keep employee information safe.
How Long Does Employment Verification Take?
The time it takes for employment verification can vary. Because verifications are used for major life events, including buying a home and applying for a job, time is of the essence. In most cases, employment verification can take several days. However, delays can occur that can cause employment information to be verified in a week or longer. At Experian Employer Services, verifiers can obtain verification immediately, and the process can begin as soon as employees provide consent, offering a fast and efficient process.
Factors That Cause Verification Delay
In order to ensure a speedy employment verification process, it’s important to know the potential causes for a delay, such as:
- Providing inaccurate or missing information
- Inputting outdated contact information
- Specific company policies regarding the release of employee information
- High volume of requests
- Employee consent issues
Speeding Up Employment Verifications Through Expert Verification Fulfillment Management
To speed up the employment verification process, employers can turn to expert verification fulfillment management like Experian Employer Services. With our verification fulfillment services on your side, you can ensure top-of-the-line security, a fast and efficient process and compliance through employee consent. In turn, you can improve employee satisfaction by showing you care about their well-being, as an efficient employment verification process can help them navigate major life events, whether buying a home or searching for a new car.
FAQs
What information is included in an employment verification?
Information that’s included in a verification request includes:
- Employee’s name
- Contact information
- Employee’s job title
- Dates of employment
- Salary and wage information
- Confirmation of employment status
Is employee consent required for employment verification?
Yes, the Fair Credit Reporting Act requires consent for releasing information from an employment verification request.
Can employers disclose salary information during employment verification?
Yes, employers are permitted to disclose salary or wage information during a verification request but are not obligated to do so.
Choosing the Right Employment Verification Provider
The employment verification process is used by various parties, from creditors to landlords and employers. Verification is used to confirm an employee’s employment information, as well as assess their employment status and income when applying for a loan or line of credit. Working with the right verification fulfillment provider is crucial because they’re commonly used for significant life events. At Experian Employer Services, we offer fast and secure verification fulfillment to help you show your team you value them when making a significant purchase or other life change.