Employment Verification: How Important is It?

There are numerous reasons for employment history verification being important, not the least being false information provided by applicants in their resumes. Employers are morally and legally obliged to safeguard their existing employees from inconvenience and harm, that may be caused due to employment of unsuitable candidates. Therefore the process of employment verification should be designed to identify falsehoods.

Dates of employment, positions held and job responsibilities are some information that are commonly misrepresented. In some cases, applicants even go to the extent of adding fictitious employers. But why do applicants feel the necessity to fabricate their resumes? A typical reason is to hide dismissal for inappropriate behavior, violence at workplace or theft. Sometimes applicants falsify information with an intention to hide periods of unemployment which may be caused due to reason such as imprisonment. Also, applicants exaggerate their employment description if the job offer requires a certain level of managerial experience or seniority. There are sundry reasons which may compel applicants to furnish rigged information.

Applicants often claim that the job change is deliberate and triggered by change in address or for career advancements. These claims are made to hide incorrect information provided in their resumes. In view of this, a thorough employment verification is mandated. It is done with the sole purpose of detecting fraudulent claims and prevent negligent hiring decisions.

An effective employment history verification is vital to ensure that the employer is not held guilty for negligent hiring, in the event of hired employee causing harm to current employees or anyone else in the workplace. Such an occurrence would demonstrate that effective employee screening was not conducted because employment screening would have helped in foreseeing problems. This insight would have helped in eliminating the troublemakers. The employer could be held liable for damages and such financial implications are known to ruin companies and entrepreneurs.

The standards for employment history verification is set by the Fair Credit Reporting Act (FCRA). Employment screening reports are deemed as a consumer reports and prepared by consumer reporting agency (CRA) – a business that prepares such reports for other businesses. Employers are legally obliged to get written consent from applicants before procuring a screening report for employment purposes. If an employer decides against employing you on the basis of the report, then they must give you a pre-adverse action disclosure. The disclosure would be accompanied by a copy of the report and a copy of your rights. This would be followed by a notice stating their decision, the name of the consumer reporting agency and information pertaining to your right to dispute the report. It is imperative that the employers are aware of these guidelines to ensure full compliance.

Failing to vet job applications is unacceptable and inexcusable. The cost and trouble caused by employees who do not have the required skills and credentials are immense but can be avoided by adequate employment verification.