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The Importance of Employee Verification Reports

The Importance of Employee Verification Reports

A sound human resource department is vital for the health of your organization. 

One responsibility of your department is recruiting fresh talent and filling vacancies. While many factors such as education, experience, and references influence the hiring decision, recruiters need to be wary. It is crucial to ensure that the applicant has not lied on their resume.

To increase the chances of getting hired, some candidates provide false experience and references in their applications. The fabrication of information by applicants can prove to be very costly for your business. 

Hiring the Wrong Candidate

The average cost of a bad hire is around 30% of the employee’s potential earnings, according to the U.S. Department of Labor. These costs include those for interview tools, HR personnel time, training costs, and fixed, other costs are wasted. Companies can’t make the massive mistake of hiring the wrong candidate because one wrong hiring decision might prove to be extremely detrimental.

If your open position is higher on your organization’s hierarchy, the repercussions of a misstep are higher too. It is crucial to protect a company from the wrong candidate at this level because it can even damage the broader reputation of a business. Having such employees may cause a significant drop in productivity and impact your corporate culture negatively. The entire team’s performance may be at stake. 

What is an Employee Verification?

Companies should have truthful information about their applicants’ record and credentials.

With HR technology, specific measures allow companies to prevent costly hiring mistakes. One method is through automated background and reference checks. Automation can significantly improve the hiring process by making it easier to filter out people based on specific criteria. 

There are agencies that maintain an online database through which employers can investigate applicants. Most of the information supplied by the applicant can be assessed through these databases. They offer a complete background screening solution. Consequently, an employment verification report can be generated through their service, which validates the claims made by a prospective employee. 

Whether it be confirming the educational records or employment history, confirming all information on a candidate’s resume is possible with this technology. Moreover, information relating to an employment gap period, professional license, and references can also be confirmed through this type of agency. Screening service-providers may also interview references for you, eliminating additional unnecessary hassle.

Importance of Employee Verification

Mitigating risk and hiring the right person for your open positions is your top priority. 

But do you know that 85 percent of job applicants lie on purpose in their resume? 

Recruiters know the odds of fibbing on resumes are high, but Recruiters may not be equipped to identify liars right away. In addition,  you often do not have the necessary resources or time to do complete verification procedures. Therefore, it makes sense to rely on background screening services to assess the authenticity of the information provided by applicants.

Needless to say, the background check is a complicated and an extremely time-consuming process. Outsourcing this task can be the best bet for employers as agencies specialize in this task and are more cost-effective.

Avoiding Legal Issues

Greater awareness about an applicant’s record could safeguard businesses from legal lawsuits.

Imagine hiring an unethical applicant who has no qualms about stealing from your organization. Obviously such an employee would become a source of trouble for you. Knowing minute details about an applicant’s criminal record may help you make the right hiring decision.

It is possible to get into legal trouble for hiring carelessly. Negligence in hiring can even lead to lawsuits for a business. In one such case, a company had to pay $7 million to the family of a victim of negligent hiring.

Applicants are aware that reporting a criminal record could diminish their chances of getting hired.

Research conducted by a Harvard sociologist showed some interesting results. Men who reported criminal convictions were about 50% less likely to hear back from an employer. Many applicants with a criminal record hide their history to make them appear more appealing. Since you want to make sure you have accurate information about applicants, it’s appropriate to consider investing in background checks.

No matter the cost, it is better to incur a higher screening cost rather than hiring the wrong person for a job.

The Requirements of an Employee Verification

The information you need to supply for employee verification can vary depending on the agent. Some companies require thorough details provided by the applicant to generate a report. In general, the name and position of past employers must be provided. Moreover, the candidate’s biodata provided in the resume must also be provided.

Companies using a third-party agency for background screening need to adhere to  federal, state, and local laws. Consent must be given by applicants for a background check, and the company’s intent must also be disclosed. No information can be passed to a third-party agency without the written or online consent of the applicant.

Final Thoughts

A significant role of your team is filling vacancies with top talent. Many applicants purposely misstate information on their resume to appear more attractive as a hire. They could be faking experience or claiming credentials they do not have. Such candidates lack the necessary skills required to be successful in the job and may also be unethical.

In some cases there have been legal lawsuits filed for negligence in hiring. Therefore, it is advisable for you to invest in employee verification services. Hiring the wrong candidate must be avoided. But remember: before providing information about applicants to a third-party agency, disclose the intent and get consent from applicants.

About the Author

Alycia GordanAlycia Gordan is a freelance writer who loves to read and write articles on healthcare technology, fitness and lifestyle. She is a tech junkie and divides her time between travel and writing. You can find her on Twitter: @meetalycia

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