How to Verify Employment History: Methods and Tools
Introduction
Verifying employment history is a critical component of the hiring process that helps employers make informed decisions while protecting their organization from potential risks. Whether you’re an HR professional screening candidates, a small business owner hiring your first employee, or a landlord checking potential tenants, knowing how to properly verify employment history can save you time, money, and legal headaches down the road.
What You’ll Accomplish
By following this comprehensive guide, you’ll learn to:
- Conduct thorough employment verification using multiple methods
- Navigate legal requirements and compliance issues
- Identify red flags and inconsistencies in employment records
- Use both traditional and modern verification tools effectively
- Document your verification process properly
Who This Guide Is For
This guide serves:
- HR professionals and recruiters
- Small business owners and hiring managers
- Property managers and landlords
- Anyone responsible for screening potential employees or tenants
What You’ll Need
- Candidate’s signed authorization form
- Candidate’s resume or employment application
- Contact information for previous employers
- Documentation templates for record-keeping
- Access to verification tools or services
Before You Start
Prerequisites
Before beginning the employment verification process, ensure you have:
Legal Authorization: Always obtain written consent from the candidate before conducting any employment verification. This authorization should be clear, specific, and comply with Fair Credit Reporting Act (FCRA) requirements if you’re using a third-party screening service.
Clear Purpose: Define why you’re conducting the verification and what specific information you need. This helps you stay focused and ensures you only collect relevant, job-related information.
Preparation Steps
1. Review the Application: Carefully examine the candidate’s resume, application, or rental application for employment history details
2. Identify Gaps: Note any unexplained gaps in employment that may require clarification
3. Prepare Questions: Develop a standard list of questions to ensure consistency across all verifications
4. Set Up Documentation: Create a system for recording and storing verification results
Information to Gather
For each employer listed, collect:
- Company name and current contact information
- Candidate’s job title and department
- Employment dates (start and end)
- Supervisor’s name and contact details
- Salary or wage information (if relevant and permitted)
- Reason for leaving
- Eligibility for rehire
Step-by-Step Process
Step 1: Start with Basic Information Verification
Begin by verifying basic details about each employer:
Contact Research: Use official company websites, LinkedIn, or business directories to find current contact information. Avoid using contact details provided solely by the candidate, as these could be fraudulent references.
Company Verification: Confirm the company exists and operated during the dates claimed by the candidate. For companies that may have closed or been acquired, research their corporate history.
Step 2: Make Initial Contact
Phone Verification: Call the company’s main number and ask to be transferred to Human Resources or the employment verification department. Many large companies have dedicated verification hotlines.
Identify Yourself: Clearly state your name, company, and the purpose of your call. Mention that you have written authorization from the candidate.
Request Information: Ask for the specific details you need, keeping your questions job-related and relevant to your hiring decision.
Step 3: Use Written Verification Methods
Email Requests: Send formal verification requests to HR departments. Include the candidate’s authorization form and specify exactly what information you need.
Fax Verification: Some companies prefer fax communication for employment verification. Prepare a standard verification form that can be completed and returned.
Mail Requests: For sensitive positions or when other methods aren’t available, written requests via certified mail may be necessary.
Step 4: Leverage Online Verification Tools
Company Verification Portals: Many large employers use automated systems like The Work Number by Equifax, which provides instant employment and income verification.
Professional Background Check Services: Consider using reputable services like BackgroundChecker.com for comprehensive employment verification that includes multiple verification methods and detailed reporting.
Social Media and Professional Networks: Use LinkedIn and other professional platforms to verify employment claims, but remember these shouldn’t be your sole verification method.
Step 5: Document Everything
Record Keeping: Document every verification attempt, including:
- Date and time of contact
- Person contacted
- Method used (phone, email, etc.)
- Information obtained or reason for inability to verify
- Any discrepancies discovered
Create Verification Reports: Compile your findings into clear, organized reports that can be reviewed and stored according to your retention policies.
Tips for Success
Expert Recommendations
Verify Recent Employers First: Focus your efforts on the most recent 7-10 years of employment, as this information is most relevant and easier to verify.
Use Multiple Verification Methods: Don’t rely on a single source. Cross-reference information from different methods to ensure accuracy.
Be Persistent but Professional: Employment verification can be challenging due to company policies or unresponsive contacts. Make multiple attempts using different methods, but always remain professional.
Time-Saving Tips
Batch Your Calls: Make all your verification calls during business hours in concentrated time blocks for maximum efficiency.
Use Verification Services: For high-volume hiring, professional verification services can save significant time while ensuring compliance.
Create Templates: Develop standard email templates and forms to streamline your verification requests.
Quality Improvements
Train Your Team: Ensure everyone conducting verifications understands legal requirements and company procedures.
Regular Process Reviews: Periodically review and update your verification procedures based on new regulations and best practices.
Quality Checks: Have a supervisor review verification reports for completeness and accuracy.
Common Mistakes
What to Avoid
Skipping Authorization: Never begin verification without proper written consent from the candidate. This violates privacy laws and could expose you to legal liability.
Asking Inappropriate Questions: Avoid questions about protected characteristics, personal matters, or information not relevant to job performance.
Relying Solely on References: Don’t substitute reference checks for employment verification. References may be biased, while employment verification focuses on factual information.
How to Fix Errors
Inconsistent Information: When you discover discrepancies, give the candidate an opportunity to explain before making adverse decisions.
Unable to Verify: If you cannot verify employment despite good faith efforts, document your attempts and consider alternative verification methods.
Outdated Information: When contact information is outdated, use business directories, LinkedIn, or corporate websites to find current details.
Troubleshooting
Company Won’t Release Information: Some employers have strict policies limiting information release. Ask what they will verify and work within their guidelines.
Company No Longer Exists: For defunct companies, try contacting successor companies, former executives, or industry associations.
International Employment: Verifying foreign employment may require specialized services or additional documentation.
Legal Considerations
Compliance Requirements
FCRA Compliance: If using third-party verification services, ensure they comply with Fair Credit Reporting Act requirements, including proper disclosures and adverse action procedures.
State Laws: Some states have specific requirements for employment verification. Research applicable state laws in your jurisdiction.
Industry Regulations: Certain industries (healthcare, finance, transportation) may have additional verification requirements.
Rights and Obligations
Candidate Rights: Candidates have the right to know what information is being collected and how it will be used.
Employer Obligations: Employers must ensure verification processes are fair, consistent, and non-discriminatory.
Privacy Protection: Protect all collected information according to applicable privacy laws and company policies.
Documentation Needs
Retention Policies: Develop clear policies for how long verification records will be kept and how they’ll be stored securely.
Audit Trail: Maintain detailed records of your verification process in case of legal challenges or compliance audits.
Access Controls: Limit access to verification information to authorized personnel only.
Next Steps
What to Do After Verification
Review Results: Carefully analyze verification results for any red flags or inconsistencies that require follow-up.
Make Informed Decisions: Use verification results as one factor in your overall hiring decision, not the sole determining factor.
Communicate Appropriately: If verification results lead to adverse decisions, follow proper adverse action procedures.
Related Processes
Reference Checks: Conduct reference checks to gain insights into the candidate’s performance and character.
education verification: Verify educational credentials using similar methods and attention to legal requirements.
criminal background checks: Consider comprehensive background screening that includes criminal history, when appropriate and legally permissible.
Additional Resources
Legal Consultation: Consult with employment attorneys to ensure your verification processes comply with all applicable laws.
Industry Associations: Join HR associations or industry groups for ongoing education and best practice sharing.
Continuing Education: Stay updated on changing laws and regulations affecting employment verification.
Frequently Asked Questions
1. How far back should I verify employment history?
Generally, verify the most recent 7-10 years of employment. This timeframe provides relevant information while focusing on recent experience that’s most predictive of future performance.
2. What if a previous employer won’t provide any information?
Some employers have strict policies limiting information release. Document your attempts and consider using alternative methods like payroll companies, The Work Number, or professional verification services.
3. Can I verify employment without the candidate’s permission?
No. You must always obtain written authorization from the candidate before conducting employment verification. Doing so without permission violates privacy laws and could result in legal liability.
4. What should I do if I discover false information?
Give the candidate an opportunity to explain any discrepancies before making adverse decisions. Sometimes apparent discrepancies result from misunderstandings or clerical errors rather than intentional deception.
5. How long should employment verification take?
Simple verifications may be completed within a few days, while complex cases involving multiple employers or hard-to-reach companies may take 1-2 weeks. Professional verification services typically provide faster turnaround times.
Conclusion
Effective employment verification requires careful planning, attention to legal requirements, and systematic execution. By following the methods and tools outlined in this guide, you’ll be able to conduct thorough verifications that help you make informed hiring decisions while protecting your organization from potential risks.
Remember that employment verification is just one component of comprehensive screening. The most effective approach combines employment verification with other relevant checks to create a complete picture of your candidates.
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