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The Best Practices In Employment Verification

The Best Practices In Employment Verification

Employment verification is an important part of the modern employment landscape. In this article, we’re going to provide you with a robust guide for your business so you can understand what employment verification is and get some insights as to how the employment verification process works.

Additionally, we’ll provide some insights as to how you can use background screening properly within the allowed regulations, and provide details on how you can optimize your verification process. We’re excited to show you the role that a thorough screening process can play in your business, no matter if you use it for HR purposes, income verification or KYC (Know Your Customer) functions.

The Basics of Employment Verification

Let’s review some of the basics of employment verification and background checks for companies, how they came to be, and the role they can play in the employment verification process.

What is Employment Verification?

Simply put, employment verification is a way for employers, institutions, and individuals to double-check and confirm employment information provided to them by an individual. There are varying degrees of employment verification, and some are more rigorous and formal than others.

If your company isn’t using a formal method for employment verification, you are very likely at risk. While it’s not something we like to think about or admit, we have to face the fact that many people aren’t 100% forthright on their resumes or other loan applications.

The things that people are dishonest about about can vary greatly. Some common things that we find are misrepresented are the length of time people were employed, the number and type of positions people have, their overall qualifications, and titles.

When you rely solely on the information you receive from the individual that you are processing a job application or loan for, you may not want to bet your company’s future on information that you have no way of truly verifying. This can be especially problematic if you’re trying to draw up a risk profile for loan verification or determining qualifications for a mortgage program. This is where a verification of employment solution comes in.

Employment verification is a specific type of background check that attempts to vet all of the information that an applicant provides prospective employers or lender. Rather than pulling these details at face value from a loan application, resume, personal website, or LinkedIn page, the information gathered during a properly conducted employment verification process can be fully trusted as accurate.

How Does Employment Verification Work?

So you’re considering using employment verification services for your business, but before you do, you want to be more clear on how it all works. Here are some of the details of how the process works (and why you probably shouldn’t try to handle this on your own).

Remember, there are two sides to this coin– there are applicants that you will be seeking employment verification for, but there are also companies, lenders, and individuals also seeking to verify one of your employee’s work history as well, especially in processes such as mortgage applications or business loans. Let’s look at both of these scenarios to see how employment verification can work.

Seeking Verification of Employment for Applicants

Firstly, it’s critical that you keep in mind that you can’t conduct any background checks in secret. When doing any sort of employment verification checks, the Fair Credit Reporting Act (FCRA) requires that person’s express permission, in writing. Therefore, you must be careful and use the correct written consent form, as there are certain criteria that are legally required.

Typically the employment verification can begin once the individual you’re checking up on signs off on their formal waiver.

From here, we highly recommend using a partner like Quentelle to handle the rest to save you hours of time and protect yourself.

From here, in many cases, the manual contact of each person on a person’s resume is necessary. Note that if you or your human resources department is handling this, it can be time-consuming and ongoing.

When attempting to verify employment, you’ll want to check for some key pieces of information. Remember that there are laws and regulations about what you’re permitted to ask. Some of the primary pieces of information you’re looking for are:

  • Did this person actually work where they said they did?
  • Did they hold the title and have the responsibilities they claimed to have?
  • Did they work at each company for the amount of time and the specific dates stated?
  • Are they eligible for rehire?

Note that in certain states, there are regulations about what you’re allowed to ask and what information can be shared. For instance, in some cases, asking about an employee’s previous salary and the reason why they are no longer employed are fine, and in other cases, it is not.

Replying to Verification of Employment for Current Employees

There are a variety of reasons why you might receive a request to verify a current or former employee’s current role at your company (we’ll go over these in detail later).

It’s often seen as good form for your company to let the employee in question know that you’ve received a formal request for their employment details. This is not only professional but also a good way to check the legitimacy of the request quickly.

No matter what, be 100% certain to verify the request before you give out any details regarding a past or present employee’s information.

Once you’ve verified the request and you’re sure it’s legitimate, you have to decide how you’re going to provide the verification. Sometimes the inquiring company will have a specific format they’re requesting (such as a standardized form), and other times the choice will be up to you.

A popular way to verify employment for someone is with a proof of employment letter. Usually printer on company letterhead (which proves your address and info), the letter typically includes important details about the employee such as their title, the dates they worked for you, and in some cases their duties. You should also include the best ways to contact you in the event they have further questions.

Outside of a letter, some other methods of proving employment are employee paystubs, and any agreements or contracts (typically for freelancers).

What About Defunct Companies?

If the company that you’re trying to contact for your pre-employment background screening is no longer in business, there are still ways to confirm these details. Paystubs, W-2 tax forms, and other documents will all prove that an employee worked for a company.

Employment Background Checks are Time Consuming

As you can see, whether you’re verifying the employment record of an applicant your company is considering bringing on board or helping a past or current employee verify their employment with your company, this is a time-consuming process.

More on this later, but we’d be remiss if we didn’t mention that you should consider using a company like Quentelle to save time, reduce administrative costs, and protect yourself.

So what is it that we need employment verification, and how did it come to formally exist?

Why Do We Need Employment Verification and Why Does it Exist?

The reason that employment verification exists is so that employers can have a proven and confirmed record of a person’s job history and other details. Why?

Well, it’s not only to make sure that the person they’re hiring has the qualifications they claim to have but also because, at the root, a company is responsible for the actions of its employees.

Let’s say that an employee of your company engages in criminal behavior. Did you know that your company could potentially be accused of negligent hiring? And did you know that if accused, your company can also be required to appear in court and potentially be held responsible for punitive damages?

That means that not only would you likely be paying for expensive legal fees, but you also may have to pay money as compensation for something one of your employees did.

Employment verification helps companies mitigate risks when hiring employees. Rather than taking someone’s word alone, employers can also use a clear and verified work record and background check to see if they have prior criminal activity (as well as other important details).

When your company uses background checks and verification of employment as part of its hiring process, you’re letting all of your current employees know that you care about your company’s culture and reputation.

So Where Did This All Start?

If you want to get technical, we can reach as far back as 1908 to see a case where an employer was held responsible for an employee’s actions, and it cost them dearly. In a machine shop in Corbin, Kentucky, an apprentice played a practical joke with a compressed air hose that killed a fellow employee.

This wasn’t an isolated incident, and management never stepped in. So even though the apprentice in question continued to act in a way that was careless, reckless, and unfit, he was still allowed to work in the machine shop.

Because the machine shop let the man continue reckless behaviors during his employment that resulted in a death, the machine shop was ultimately held responsible for the death themselves.

This case set a legal precedent, and throughout the years the matter of an employer’s accountability for employee actions has had several surges.

As recently as 2008, another crucial reason for employment background checks came into play– a massive economic downturn that resulted in a national financial crisis. Until 2010, lenders had no employment screening services in place. This meant that lenders weren’t required to verify or document employment for the people who were borrowing.

Unfortunately, this meant that loans were being granted based on people’s personal judgments and some predatory lenders in the financial industry.

With the creation of the Consumer Financial Protection Bureau came the passing of several regulations and laws that now required both the lender and the consumer to work together to prove that the borrower could actually afford the debt.

A specific example is the Ability-to-Repay rule, which states that a lender or creditor must make “a reasonable, good-faith determination of a consumer’s ability to repay” loans according to their terms.

By formally verifying someone’s employment, lenders can accurately determine if the person applying for the loan is creditworthy, and also lowers the risk of fraud.

Through the years, technology for performing background checks and employment verification has changed, but the core reasoning behind them has not. Whether you’re an employee or a lender, when you use employment verification and background checks, you’re protecting yourself, your employees, and your business as a whole.

Employment Verification and HR Platforms

Employment verification has many uses. Many companies, individuals, and organizations use these sorts of specific background checks. Requests could be from a company looking to hire a potential applicant, a landlord who is looking to rent out their property, or a financial institution looking to qualify a borrower.

Remember that employment verification isn’t only used for a company’s hiring process, it can also be used by other organizations for various– but important– reasons. No matter the reason, the accuracy and regulations of employment background checks are critical. Here are some of the use cases for employment verification.

Common Employment Uses

Hiring an Applicant: employment verification can be used to double-check the validity of what a potential employee put on their resume.

Verifying a Salary: In some cases, a company that is hiring an employee may want verification of the salary the applicant is currently making before formally offering them a specific amount.

Common Financial Uses

Verification Prior to Loan Approval: Nowadays, when you are formally applying for a loan, some sort of employment verification is required. This information is key so that lenders know that your income will allow you to make the payments necessary to keep your loan current and in good standing.

Verification for Rentals and Leasing: Apartment companies and property managers will typically use background checks to verify an applicant’s employment. In some cases, they’ll want to double-check monthly income to ensure the rent/lease payment is feasible.

How Automated HR Platforms Have Changed Things

For many years, companies only had a few limited choices when it to how they would handle their background checks. There was also not a lot of emphasis on privacy and security of information. That is no longer the case in the current place we’re in technologically.

Automated human resource platforms have taken much of the paper and pen work that HR departments were doing manually and moved it into the cloud. And if you choose the right platform (such as Quentelle), you’ll be able to handle many of your verification requests automatically. When this automation is in place, much of the heavy lifting of employment verification is removed from your HR staff. This will keep them from staying busy with the shallow, ongoing work that these employment background checks can be.

If you choose the right partner, with this verification automation also comes robust reporting so you’re never in the dark about any requests that are coming in.

Additionally, proven HR platforms are far more secure than traditional means. Not only will employer and employee information exclusively be shared over secure and encrypted channels, but through electronic signatures, the information will only be shared with the correct parties after documented employee approval has been logged.

Beware of FCRA Laws and Regulations

When it comes to background checks and employment verification and any financial applications, it’s critical to keep the Fair Credit Reporting Act (FCRA) in mind. So what is the FCRA, and what does it mean to show compliance?

The FCRA is in place so that all employers are required to conduct all of their background checks fairly. It seeks to ensure that all inquiries are not only fair and accurate for consumers, also but as transparent and thorough as possible.

If you’re not careful and don’t familiarize yourself with the specifics of the FCRA, your business could be in danger of a lawsuit.

So what constitutes an FCRA-compliant background check? The organization that handles this is the Federal Trade Commission (FTC), and they have a set of guidelines that are your responsibility to follow as a business.

Firstly, your employees have a right to know about the background check. They also need to provide explicit consent for the background check, and they also have the right to review any of the information that relates to their financial and personal information.

Additionally, if they feel there are things on their background check that are inaccurate, they have the right to attempt to correct them. Further, they also have the right to appeal any decisions if they feel they were treated unfairly based on the information that their background check reveals.

Before You Request a Background Check

Be sure you provide written notice to any applicants explaining that you plan to use info from their consumer report to possibly make hiring decisions. This has to be a standalone notice (not part of a job application). You’ll need direct written permission to access this person’s consumer information.

Before Making Decisions Based on a Background Check

If you decide not to hire someone because of what you learn in a background check, you have to take certain actions before you choose not to hire them, promote them, or take other negative actions regarding employment. First, you have to give the person in question a copy of the information you used to make your decision. You also have to provide a copy of a summary of the person’s rights under FCRA (obtained from the FTC). You also need to give them a reasonable amount of time to look over everything you sent and contact you if there’s any information you’d like to dispute. You can find more information about FRCA from the equal employment opportunity commission here.

After You Make Decisions Based on a Background Check

If you give the person in question time to respond and still decide that you aren’t going to hire them, give them a promotion, or perform other negative actions based on their background check, you have to let that person know. Typically this must be done in writing, electronically, or verbally. When you do this, you must use a specific form called an Adverse Action Notice. This allows them another chance to correct any inaccurate information.

These notices are nuanced and have specific details that need to be included when you send them. They must include the person’s right to refute their accuracy or correct any information that is wrong or incomplete. Additionally, a statement must be included that says that any background screen service used didn’t decide to take “adverse action” and cannot give specific reasons for this decision. Finally, you have to include the specifics on which consumer reporting agency you obtained the report from.

An Important Note About FCRA Compliance: Remember that the information included in this article is intended to be helpful and is not an exhaustive guide on the topic of the Fair Credit Reporting Act. This guide should not be construed as legal advice. We’d love to talk to you if you have any questions about how you can navigate the FCRA.

Equal Employment Opportunity Commission

Compliance is very important when it comes to the FCRA, but it doesn’t end there. You also need to consider the guidelines that are viewed by the Equal Employment Opportunity Commission (EEOC). These guidelines are in place to minimize discrimination.

For instance, you’re not allowed to check certain criteria of a person’s background when it comes to things such as age, race, nationality, the color of skin, gender, beliefs, or disability. In fact, in some cases, you may need to make concessions if it comes to light during a background check that certain problems are present due to a disability.

You’re also not permitted to make decisions based on any profiling of any kind, or to avoid challenges that you perceive to be more common in certain groups of people.

In the eyes of EEOC, you must be able to prove that you are applying the same standards to everyone as equally and fairly as possible.

Overall, the best way to protect yourself is to have the same criteria for screening every individual no matter who they are.

Employment Verification Best Practices For Employers, Government Agencies, and Financial Institutions

Put in the Effort: Unless you hire a company like Quentelle, handling your own employment verifications is often time-consuming and no small task. You’ll have some verifications that are easier than others, but there are also some (maybe most) that are going to take much more time and effort on your behalf. When you do hit one of the tougher verifications, be sure that you do all you can. We recommend four or five attempts, and each attempt is counted when you reach out to the correct contact using one of the following contact methods: phone, email, letter, or even fax. We also recommend alternating methods (first call, then email, etc.) to maximize your chances of getting a hold of someone on different mediums. It’s always the best idea to make notes each time you attempt to contact someone for verification so that you can also show when you tried and the method you used should that information come into question.

Decide Your Timeframe: Some resumes will go back a decade, two decades, or more depending on the age and work history of the applicant. Decide for yourself how far back you want your standard check to include. By choosing a standard amount of years– say 5– that you’ll verify, you’re approaching each employment verification with a level of fairness. The last thing you want when you’re background screening is to accidentally leave yourself open to what could be construed as discrimination by treating applicants differently. When you decide the amount of time you’re going to use during your own personal screening process, stick with it, and you’ll not only get better results overall, but you’ll show that you’re being fair to those that you’re screening.

Don’t Assume Current Employers Are Expecting Your Call: Candidates who are seeking to work for your company may not have told their current employer that they’re in the job market. This is why it’s so important to gain clear written or verbal consent from each applicant. You don’t want to jeopardize the employee’s opportunity to personally make their current employer aware that they are planning on leaving. In some cases, this can cause tension in the workplace for the applicant, and in some extreme scenarios cost them their employment sooner than they were planning.

Can’t Get Through? Do Some Research: If you’re having trouble reaching a specific company or contact in your pre-employment background screening, it’s easier than ever to do some digging yourself online. Perhaps the company you’re trying to reach has had some changes recently. Remember that phone numbers and extensions can change, people transfer or are promoted or move on, emails change, and companies even change their primary URLs. With all the different avenues available such as Google, LinkedIn, and corporate sites, it’s likely you can get the updated information easily if you take a moment to search.

Deeper Searches for Certain Sectors

For various industries and sectors, employment verification is more critical than others. For example, when it comes to banks, financial institutions, and government agencies, a keen eye for detail is needed. Go deeper to ensure that you’re secure, and the candidate you’re considering is the best fit.

For example, verifying dates and titles may not be enough. Consider asking about any prior issues with performance, or if there were any specific essential skills needed to perform their specific job. Also, you can directly ask about work ethic related to their previous position and what was needed to find success in the role.

What about gaps in employment? How many are there and how long were they? Also, don’t be shy– if information that an applicant has provided you isn’t lining up, don’t be afraid to explicitly ask about details. Don’t be afraid to ask questions and dig deeper. You may find that the applicant in question is showing unethical behavior by misrepresenting key details to give a certain impression that isn’t expressly accurate.

Your aim here is to be sure that you are confidently hiring the employee that you think you are and are fully informed.

Quentelle is the Gold Standard in Employment Verification

Not all methods of employment verification are created equally. We’re able to deliver a best-in-class screening process to companies of all sizes– from start-ups to Fortune 500 businesses. We’d love to show you why we’re the industry leader in a full range of any employment verifications you might need.

Not only will you save time and administrative costs by using our turnkey automated system to handle all of your employment and income verification, but you’ll also allow your human resources staff to focus on other facets of your business.

When it comes to employment screening services, we offer the state of the art in security and compliance. Our dedicated focus on data privacy and security is second-to-none, and we adhere to FCRA compliance, have SOC I & II certification. In addition, we not only use at-rest encryption and proactive threat screening but also use masked PII for the ultimate in data security and privacy.

Companies like yours choose our platform for their pre-employment background screening for many reasons, but one of the most common is because our software is as simple to use as it is powerful. We take the absolute very best in background check services and deliver it to you in one simple platform.

Additionally, if you have any questions about our platform at all we have a dedicated staff who is here to help. Everyone on our support team is highly-experienced and is expertly trained on our platform. No matter what your question may be, our unmatched support team will handle all inquiries quickly.

Let us show you why here at Quentelle, our motto is “smart and simple”. Schedule a demo today and let’s talk about how we can help your company with its pre-employment background screening needs.

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Verification of Employment and UI Tax

Verification of Employment and UI Tax – What You Need To Know

Employment verification is a process to enable mortgage lenders, financial institutions, government agencies, and employers to confirm an applicant’s present and/or past job status. The process helps establish that the applicant has the requisite work background that they claim to have. Verification of employment may also help identify any fabricated job titles, gaps in employment, and false or misleading claims.

Financial institutions and mortgage providers frequently need to perform VOE checks before they may approve a loan for an organization’s current or former employee. Quentelle utilizes the advanced and reliable VeriSafeJobs solution to automate and speed up the verification of employment process based on the requests it receives from these financial lenders.

Quentelle also receives similar VOE requests from government agencies. When employees seek government assistance, the concerned agency can utilize the Quentelle platform to obtain employment verification. Quentelle offers this service free of charge to government agencies on behalf of the employers it represents.

Why do Mortgage Providers Require Verification of Employment for Loan Approvals?

Why do Mortgage Providers Require VoE for Loan Approvals

Verification of employment is one of the time-tested ways for financial institutions and mortgage providers to protect their financial interests as well as serve home buyers and other loan seekers more effectively. Lenders rely on the VOE process to ensure the loan applicant or a home buyer will be in a financial position to make their loan repayments on time.

Mortgage lenders usually accept a maximum debt to income (DTI) ratio of 43 percent. In simple terms, it means that the borrower’s aggregate debts, including monthly mortgage payments, vehicle loan payments, credit card payments, and other monthly bills must not be higher than 43 percent of their gross monthly income.

Apart from the overall DTI ratio of 43 percent, mortgage providers also usually like to ensure that the monthly home loan payment of a borrower is not higher than 33 to 35 percent of their gross monthly income. Together with the DTI ratio requirement, this general condition helps in rationalizing the lending process for the mortgage company.

Verification of employment plays an important role in this because the lender can be sure that the information submitted by a loan applicant is correct. Although it may appear that VOE is an impediment in the way of borrowers who want to buy the house of their dreams, but in reality, this process helps protect prospective home buyers from obtaining a mortgage they may be in no position to afford.

Mortgage Loans and Gaps in Employment

While employment history is often a key element in a loan application, lenders usually require only a work history of the last two years. Therefore, if the borrower has had employment gaps before that period, it may not affect their loan application. However, when gaps in employment exist in the last two years, it may become a concern for the mortgage provider especially if the length of the unemployment period is 6 months or higher. An unemployment period of just one or two months in the last two years will usually not matter much for a mortgage approval.

Some Employment Gaps are Reasonable

When an employment gap occurred for a valid reason, the mortgage lender or financial institution will give due consideration to it. For instance, a loan applicant may have taken a maternity leave for six or more months, or may have taken time off to pursue higher education.

Temporary disability and layoffs may also result in extended gaps in employment, which a lender is likely to understand. However, multiple job changes within a span of a few months, a short employment history of less than two years, and substantial increase or reduction in income in recent times might be viewed as red flags by some lenders.

Loan Applicants can Explain the Employment Gaps

A loan applicant can increase their chances of their loan getting approved if they provide a valid explanation supported by relevant documents about their prolonged employment gap. Finishing school, going on maternity leave, or performing the role of a caregiver for a sick family member are the kind of reasons that can be backed by documentary evidence.

Sometimes the borrower may be able to demonstrate that they continued to make their existing debt payments consistently during the period of employment gap, which could strengthen their loan application. In general, lenders are looking for employment stability to assess a borrower’s ability to make future mortgage payments.

The Process of Verification of Employment for Mortgages

The Process of VoE for Mortgages

The process to verify employment for the purpose of mortgage approval is not very different from other VOE processes. However, some minor distinctions may exist. In general, the process may include the following steps:

  • The borrower files a loan application detailing their employment history and income information, among other things. Documents such as W-2 forms or pay stubs may have to be submitted at this stage.
  • The lending company communicated with the borrower regarding any additional proof or documentation they may require.
  • The mortgage lender processes the loan application. If no specific issues are found, the lender will proceed with the verification of employment.
  • The lender may choose to verbally verify employment by placing a phone call to the loan applicant’s most recent employer. If any discrepancies are found between the loan application and the employer’s version, the lender will communicate with the loan applicant.
  • In case the loan applicant is self-employed, they will need to submit their proof of income from the IRS. This income document can be obtained by completing Form 4506-T. An official tax transcript issued by the IRS will show the applicant’s income, based on which the lender may approve the loan.
  • Sometimes when a lender approaches an employer with a VOE request, the employer may direct them to a third party verifier. This could make the verification of employment process longer and costlier (the verifier will charge a fee). Third party employment verifiers can additionally offer background checks, but it is important to ensure the background check or background screening is performed in accordance with the FCRA (Fair Credit Reporting Act) regulations.

In general, the manual, in-house process of verification of employment for lenders can be tedious, resource intensive and time consuming. If the employment verification takes a long time to complete, it can frustrate the borrower who may sometimes turn to another lender by the time the VOE is done.

Frequent time lags in the VOE process and slow loan approvals may limit the business turnover for the financial institution. Inaccuracies or mistakes in the employment verification process may create compliance issues or increase the incidence of loan defaults and loss of profitability. Higher operational costs may also impact the bottom line when loan companies attempt to handle the complete employment verification process in-house.

Automation in VOE is Helping Improve the Lending Process

Smart automation in employment verification with a platform such as Quentelle is helping banking institutions and mortgage providers make faster and better lending decisions. Verification of employment, which is considered one of the major pain points in the lending business, becomes streamlined and easy with Quentelle. Over time, it allows the lenders to achieve higher profits and deliver superior services to home buyers and other borrowers.

Traditional Approach to Employment Verification is Inadequate for Lenders

Considering the highly unpredictable and competitive nature of the lending business, loan providers are under constant pressure to sustain their market position while remaining profitable. Using traditional in-house approaches to verification of employment, the lenders experience cost inefficiencies and compliance risks due to potential mistakes by HR teams. On the other side, borrowers are becoming increasingly demanding with high expectations for service and speed.

If it takes a slightly longer than usual time to verify employment, the lender may risk losing the business to their competitors. If they try to rush through the VOE process, mistakes may occur, which can seriously hurt the bottom line. This is where all types of lending institutions, banks, and mortgage companies are now more receptive than ever to move their verification of employment service to Quentelle, which is a cutting-edge digital platform for VOE.

Automation can Streamline the Verification of Employment Process

The decision of loan approval must fundamentally be based on the borrower’s ability to repay. Borrowers with stable employment are more likely to have this financial ability. To identify these borrowers, it is critical for a lender to have a system in place that makes the verification of the employment process reliable, speedy, and accurate. The Quentelle platform is equipped to intelligently automate this function.

Automation in VOE

Repetitive, manual, error-prone and time-consuming tasks such as verification of employment are an ideal fit for automation with Quentelle. It can relieve the employer’s in-house talent of performing mindless administrative work, improve accuracy in verification, and enable the processing of more loan applications within a shorter period of time. At the same time, the Quentelle VOE service can help maintain compliance, while delivering speedy service that drives higher customer satisfaction levels.

Why More Lenders are Choosing Quentelle for Employment Verification

Lending institutions and mortgage companies are increasingly relying on the technology platform of Quentelle for verification of employment. The platform automates the time-consuming and labor-intensive VOE process to complete it in the shortest possible time. Customers experience a dramatic reduction in the time and effort they would otherwise invest in issuing loan and mortgage approvals.

With Quentelle’s VOE solutions, lenders can process loans faster and more accurately, giving a boost to their mortgage lending turnover. Homebuyers and other borrowers are happier because of a more streamlined process and faster loan approvals. Quentelle creates a win-win for all.

More Predictable Timeline

Large and mid-sized lending companies have a regular requirement for employment verification, considering the high number of mortgage applications they receive. Automating the VOE process with Quentelle not only reduces manual paperwork and expedites the process, it also allows for a more predictable timeline. Loan officers as well as loan applicants will have a better idea of how much time the approval will take. The mortgage provider can also set more accurate revenue goals and strategies when there is greater predictability in the lending system.

Better Privacy and Security

When traditional methods of employment verification are used, the in-house handling of the paperwork and documentation does not ensure foolproof safety and confidentiality of the information exchanged. On the other hand, when the mortgage lender utilizes the Quentelle platform, concerns related to privacy and data security are virtually eliminated. The platform’s automated and technology integrated VOE software provides comprehensive data protection and cyber security. Sensitive customer information remains accessible only to the authorized personnel, and the risks of data loss are avoided with cloud storage technology.

Higher Cost Efficiency

In comparison to the traditional means of employment verification, the automated Quentelle platform proves to be significantly more cost effective for the lenders due to superior operational efficiency. The lending organization no longer needs to have a large in-house team to handle the repetitive VOE tasks manually. The automated solution from Quentelle not only makes the verification of employment process easier and friction-less, it also helps cut down the operational costs for the lender to get it done within a tight budget.

Greater Business Focus

When a bank, financial institution or a mortgage lender has access to Quentelle’s automated VOE solutions, it becomes possible to fulfill the employment verification requirements quickly, securely and more reliably. This frees up the time of the talented in-house teams to focus their attention on more strategic and valuable business work. The net result is that the lender manages to close more loans, the bottom line improves due to higher accuracies in the system, the customers are happier, and the company’s market reputation gets bolstered over time.

Improved Compliance

When financial lenders select a technology platform to automate their task of employment verification, they should make sure of the service provider’s technology capabilities, security certifications, and a track record to adhere to the FCRA compliance requirements at all times. Quentelle has robust systems in place to ensure to protect sensitive customer data and follow the norms laid out by the regulating agencies. Quentelle’s stringent verification of employment policy and procedures are designed to ensure full compliance with the law and minimize the lender’s risk of lawsuits.

How Does Employment Verification Work for Employers Looking to Hire Candidates?

Employment verification is a vital element in the pre-employment screening, which serves to assure the new employer that the candidate is a good fit for their organization and the job position they would hold. Employment verification works as follows:

  • The new employer reaches out to the candidate’s past employers to verify details about the candidate, such as: (a) job titles; (b) period of employment; and (c) reasons why they left the job or why they were terminated.
  • These employment reference checks may be carried out as written communication, but sometimes the HR representative of the new employer may also speak directly to the former manager or supervisor of the candidate.
  • This type of background screening and reference checks with the previous employer are usually performed as part of the hiring process – prior to offering a confirmed job to the candidate.
  • The new employer has a legal obligation to notify the candidate about this type of background check and their employment decision.
  • Unlike employee background checks, there is no limit on how far back in time an employer can go with employment verifications from multiple past employers.

Why is Employment Verification Vital to the Hiring Process?

Employment verification is critically important because employees are the strongest asset of any company. Carrying out this meticulous verification for every new hire can be time-consuming for an employer, and errors of omission may sometimes occur.

The right way to conduct background screening and employment verification is to engage the services of a professional firm that has the capabilities and experience in this field to do it in a reliable, timely, and cost-effective manner.

Risk of Employment Fraud

Job applicants may sometimes commit resume fraud if they are desperate to get a job. In their job application and resume, they may submit false information about their academic qualifications, certifications, licenses, and prior work experience; overstate their job duties in the previous job; or fail to provide the correct reasons for exiting from their previous employment. To protect your organization from this type of fraud, verification of employment history is a time-tested approach.

Stakes are High in Positions of Trust

If you hire someone without employment verification, the risk is higher that they may be unfit for organization’s culture and may create disruptions or influence other employees in a negative way. The stakes increase further in positions of trust where the new employee will have access to the company’s confidential data and information or deal with money and finances. Data theft, financial theft, or other wrongdoings of an untrustworthy new employee may result in serious financial losses, damage to business reputation, and risk of costly lawsuits.

Challenges of High Employee Turnover

You may think that even if you end up hiring an unfit candidate in absence of employment verification, you can fire them to get rid of the problem. However, failure to have a system for employment screening tends to increase worker turnover. The hidden costs are enormous. At one end, you will lose in terms of the costs involved in hiring, training, and investing in a new employee. On the other end, frequent terminations due to theft, illicit drug use, violence, and breach of company policies will demoralizes your existing workforce and affect business productivity.

Unemployment Verification Form

When a former employee was removed from their job, they will most likely apply for unemployment benefits in their state. The individual must complete the Unemployment Verification form, which has a section for describing the reason for their removal from job.

The individual who has been terminated from employment might request that their ex-employer provides an unemployment verification letter. They may also request that the unemployment agency in their state provide this unemployment verification letter. This letter can serve as their proof of unemployment.

Unemployment Insurance and the Unemployment Audit Process

The state’s Unemployment Insurance agency will carry out an unemployment insurance audit according to the US Department of Labor guidelines. This audit process ensures compliance on part of the employers and helps answer any questions that may arise.

What Triggers an Unemployment Insurance Audit?

Most of the UI audits are performed randomly every year on a small percentage of employers in the state. The pool from which the employers are chosen includes all companies registered as employing businesses within the state.

For the purpose of the unemployment insurance tax audits, some employers may also be specifically chosen to verify whether they are accurately reporting the wages or they have appropriately classified the workers in compliance with the state’s UI laws.

Even if a company does not have an active Unemployment Insurance account, they could be chosen for the UI audit to assess whether they may be a liable employer. The UI tax audit is performed to verify that:

  • The employer is correctly reporting the workers’ wages.
  • The employer has appropriately classified all workers.
  • The employer has filed all the required reports.
  • The employer has reported the payroll correctly.

Duration and Time Period of the Unemployment Insurance Audit

The general time period of the audit is one calendar year. If the audit reveals discrepancies, it may be expanded to additional years and the tax auditor may request that you provide records for those years. The duration or length of the audit will vary according to a number of factors, such as the size of the company and the number of employees, the availability of proper records, and the extent of issues discovered, if any. The date and time of the audit will be set by the auditor, and the audit may be conducted at the employer’s premises or at their accountant’s office with authorization.

Interfacing with the Auditor

The business owner (employer) is usually not required to be personally present during the audit. They can designate their authorized representative to work with the auditor on their behalf. The auditor may work with the employer’s accountant or another service provider as long as they are an active agent on the company’s UI tax account. In a situation where the agent is unable to answer any questions from the auditor, the employer should be accessible by phone to provide answers directly.

Types of Records Examined in the Audit Process

The employer should maintain proper payroll records and all the necessary documents that are essential to track payroll. All information to the auditor should be reported correctly. Employees and independent contracts should be classified correctly. Records that the auditors typically request in an audit year are listed below. Based on the tax auditor’s findings and review, they may ask for your additional records at the time of the unemployment insurance audit.

  • IRS Forms 940, 941, 1096 and 1099
  • Form W-2/W-3
  • Income record of every employee
  • Financial statements
  • General ledger of accounts
  • Tax returns pertaining to business income
  • Journal of cash disbursement
  • Petty cash account
  • Payroll timesheets, journal, or register
  • Bank statements
  • Master vendor files or listing
  • Corporate minutes
  • Documents pertaining to non-payroll payments made, such as invoices, receipts, contracts, or certificates of insurance
  • Any other records pertaining to payments made to individuals towards services performed

Verification of Employment, Unemployment Insurance Claims, and Human Resources Platforms

Automating the VOE Process

Quentelle helps employers save valuable time and cut down administrative costs regarding verification of employment (VOE) and unemployment insurance claims with the use of advanced technology. Quentelle uses VeriSafeJobs for automating your VOE and income verification requests to help ensure compliance.

Advantages of VeriSafeJobs for Automation

Data Security and Privacy

Features, such as at-rest E2E encryption, FCRA compliance, vulnerability assessment, SOC 1 & 2 and SAS 70 certification, and proactive screening of potential threats keep your data private and safe.

Simple and Smart UX

You can have a simple and smart user experience with a user-friendly interface, quick implementation, and advanced metrics and reporting.

 Unparalleled Client Support

Your inquiries and concerns are addressed on time, every time, thanks to the excellent personnel training, experienced account management, and reliable support and service.

Securing WOTC Credits

Quentelle can provide your company with a streamlined solution that simplifies screening for WOTC (Work Opportunity Tax Credits). We do this through our partnership with Walton, which is a top technology provider for employment tax credits. Walton administers a proven and simple questionnaire during the employer’s process of hiring or on-boarding, which enables it to determine eligibility and seek Work Opportunity Tax Credits on your behalf.

When you implement the automated solutions from Walton, you will have the assurance that no effort is spared to optimize your tax savings. At the same time, your team will be free from this workload to focus on their core business activities. With this proven solution from Walton, you can pursue your hiring requirements while knowing that Quentelle will take charge to handle things efficiently behind the scenes.

ESD Issues

The Employment Security Department (ESD) is required to conduct annual compliance audits according to the guidelines of the US Department of Labor. If you are selected for an ESD audit, you will be contacted by the Department’s auditors to schedule a mutually convenient audit date. ESD will also send you a letter confirming the appointment along with a checklist for the required records and a pre-audit questionnaire.

What Does an ESD Audit Cover?

ESD auditors will conduct a number of functions during the audit, including:

  • Seeking evidence of any unreported workers, independent contractors, casual workers, and other individuals providing personal labor.
  • Comparing the sample time records and payroll with the wage and hours that have been reported to ESD.
  • Reviewing the nature of business and whether you have been assigned the appropriate tax rate (if you are a new employer).
  • Determining whether you have correctly reported independent contractors.

Documents Required in an ESD Audit

For an ESD audit, you may be required to provide employer’s records of the last three years (or more, if business practices are found to be suspect). Records typically reviewed in an ESD audit are:

  • Business ownership licenses and documents
  • Accounting, payroll, and employee time records
  • Financial statements, bank records, general ledgers, and check registers
  • Federal and state tax records (which include IRS 1099)
  • Copies of invoices, contracts, and registration numbers of each independent contractor
  • Opt-in forms for the corporate officer

Transforming Mortgage Lending with Quentelle’s Automated VOE Process

Choosing a professional automated system for verification of employment not only saves time for mortgage lenders to help them close more loans, it also improves compliance, saves on potential legal challenges, keeps customers satisfied thanks to faster loan approvals, and lowers the lender’s operational costs involved in employment verification with confidentiality.

Quentelle’s automated platform for verification of employment is designed to help mortgage providers put the borrower’s interests on top by streamlining the loan approval process. Home buyers are usually making the most important purchase of their life and fulfilling a dream to own a home. Quentelle is committed to empowering mortgage providers through its platform to make the home buying process more simplified and rewarding for everyone involved.

Advantages for mortgage providers with Quentelle include:

  • Superior accuracy and reliability achieved throughout the verification of employment process.
  • Reduction in loan origination time and expense is possible due to minimal friction with borrowers and employers.
  • Possibility to close a higher number of mortgages within a shorter timeframe thanks to an efficient, automated VOE process.
  • Higher scope for generating referrals because the faster and convenient automated verification process helps exceed customer expectations and drives greater satisfaction levels.

Quentelle – Your Dedicated Partner for VOE and More

When you need a professional service provider with the technology and expertise to perform verification of employment, handle unemployment insurance claims, and provide an automated platform for various critical human resource tasks, Quentelle is here to deliver outstanding services and solutions to you. Reach out to us to learn more about how we can help your company save precious time and money with our highly rated and services. To schedule a demo, call us at (888) 565-5515 or complete this online form.

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What to do When Your Employee Needs Verification

There are several reasons why an employee may need verification of employment, and it is essential to have the right VOE provider when you get these requests. Typically when an employee needs verification, they will need confirmation on the start and end dates of employment, pay rates, hours of work, etc. While you may not think this is a big deal, it can be life-changing for your employee and you should ensure you are prepared to provide accurate information in a timely manner.

Reasons an Employee Needs Verification

One of the most common reasons an employee needs verification is to secure a loan. This can be a mortgage loan, auto loan, personal loan, or another loan. It could even be to open a credit card. You will typically receive a letter from the lender requesting employment verification. If you have a VOE provider, you can pass it along to them.

These requests often can be completed over the phone since they may simply require the employer to confirm current employment and salary. However, never provide this information without first talking with your employee to ensure they have applied for a loan.

Another reason an employee might need verification is for leases. This is often when a landlord or building supervisor is reviewing an application. Essentially employment verification is used to determine whether the person will be able to pay their rent. Usually, you provide their current salary and job title.

Another common reason an employee needs verification is for green cards and visas. The person needs to show government agencies that they can support themselves while in the country. The government agency will require you or your VOE provider to confirm current employment, salary, and continued employment.

Written Authorization

There are a few critical elements to employment verification. The first is to obtain written authorization from the employee. They must submit a written request and permission to release information about them. If you obtain a request from a third party, you must still have written authorization from the employee before going through your VOE provider. The one exception is when a court or government agency requests this information.

What Information do You Need to Provide?

Once you receive a request for employment verification, you must determine what information you need to provide. Some employers will not provide any information unless there is a court order or other case with no legal wiggle room. The requestor will provide you with a form that you need to fill out that lists the requested information. You must ensure that you and the employee both sign and agree to provide this information.

Provide Accurate Information

Accurate information is crucial when an employee needs verification. While your VOE provider will verify employment, there is still some due diligence that you must do. You should ensure that the information provided is accurate by double-checking and retaining a copy in the employee’s personnel file. It is a good rule of thumb to have a designated point of contact for employment verification.

Reach Out to Quentelle Today for Employee Verification

Verifying the employment history of your prospective employees is vital to making the right choice when hiring. It is also important to provide your current and former employees with accurate and speedy employment verification. Often, this takes up a lot of time and energy from your HR department. You can automate the employee verification process using a platform like the one we offer at Quentelle. Contact us online or call us at 888-565-5515 to get started today. Our experienced team is ready to answer your questions and find the solution right for your company’s needs.

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Woman looking at visual candidates on her projected screen

What to Look For in Your Human Resources Business Solution

Human Resources continues to be one of the most essential departments in the business world. Without it, your employees wouldn’t have access to the proper tools they need to stay successful.

This is why your HR department needs smart business solutions to keep the workforce thriving. With the right technologies, your HR can help prevent turnover and create more engagement among employees.

However, if you feel like your HR team has slipped behind technologically, take a look at some key things to look for as major solutions.

Verification of Employment Solution

One essential task HR takes on is verification of employment. This also usually involves income requests, requiring considerable organization based on the complex data involved. You need top-tier tech solutions to organize it all, plus keep all that sensitive information safe.

Many companies outsource this task to third-party companies. Not all companies do a good job, especially if not more focused on comprehensive HR technology.

Your best solution is going through VeriSafeJobs, offered through Quentelle, and bringing more superior reporting capability to your operations. The use of VeriSafeJobs lets you enjoy advanced metrics, so all employment verifications are thorough. A smart and simple user experience also helps with learning curves.

It’s also worth noting that VeriSafeJobs has unmatched client support, so your HR team gets questions answered fast. Privacy is taken seriously with FCRA compliance.

Simplify Unemployment Claims

Your HR group already knows the complexity of dealing with unemployment claims through your employees. The process was once very protracted, leading to possibly exhausted HR workers keeping up the pace. Most of this resulted from adhering to filing deadlines, creating issues when sending claims by regular mail.

Now you can simplify it by using ValeU NSN, a partnering company with Quentelle. This works by digitizing the entire unemployment claims process. Your company should be able to send these claims electronically, so you never miss deadlines.

The result of this is getting a week’s head-start on claims, so they’re filed sooner. Response times are ultimately faster as a result.

ValeU NSN is made for Fortune 100 companies, though any-sized company finds benefits using this solution. Implementation should also be simplified when you work with the right consultant.

Reduce Unemployment Tax Complications

Your HR department probably wouldn’t argue that dealing with unemployment taxes is one of the most complex tasks they’ve ever done. A considerable burden here is the overly complicated tax rules in each state, usually creating inaccurate data.

Our partnership with ValeU Group provides more accurate figures, so you never have to worry about tax penalties again. The benefit here is Vale U Group has more extensive knowledge of state tax rates, hence having a real unemployment tax expert in your corner.

Expect them to hunt vigorously for errors and provide the most accurate reports. These are real state tax experts who work as outsourced advisors.

Working with them, you’re guaranteed accurate unemployment tax information. Plus, you gain a dependable consultancy team on all other tax matters.

Simplify Your WOTC Program

Taking advantage of tax credits is no doubt a vital part of your business. A WOTC program is beneficial not only for you but to those you hire who have barriers to employment.

Otherwise known as Point-of-Hire tax credits, getting WOTC set up can take a lot of time for your HR team. Much of this is the pre-screening process, not including waiting to sign the 8850 form.

Our partnership with Walton gives you access to quality tax credit experts who can save you more than if letting HR handle it. Walton simplifies the process by sending digital questionnaires your employees fill out. Based on their answers, Walton finds ways to bring double the savings possibly. 

Now you can speed up the eligibility pre-screening, plus get help with other tax credits you overlooked. Read about how our partnership with Walton saved a national grocery chain double the amount from what they initially thought.

Improve Your HR Analytics

Your HR staff likely already use analytics of some sort, but how detailed are they? Not all analytic programs are great at providing the granular information HR employees need to help other company employees. When HR doesn’t see the whole picture of what’s going on, it only frustrates those they’re trying to help.

Our HR analytics engine keeps your HR workers in the know. It all starts with tapping into big data and organizing it in the most efficient ways. You can expect to bring more optimal employee performance using a better approach to big data.

Improving this further focuses on utilizing artificial intelligence to compile all the large amounts of data coming in. AI has truly advanced tenfold from just a few years ago. Now it can help organize metrics in a truly more intelligent way. Best of all, AI scopes out business trends you probably can’t see without more help.

Rounding this out is our metrics platform is fully integrated into the HR solutions suite. This enables your HR team to access all data from one source rather than from disparate data silos. Accessing information all in one place makes for more productive HR workers rather than add to their stress.

Bring a Digital Transformation to Your HR Department

Based on the above tools, you can see that a digital transformation must keep up with business challenges in today’s times. HR duties are far more complex today than a decade ago. 

Finding the right technology is the biggest hurdle. Another challenge is finding tools that integrate, so HR workers don’t have to search from multiple sources to answer critical questions.

We take technology seriously at Quentelle, where our sophisticated big data program is now renowned worldwide. Through that, we’ve incorporated AI and other emerging technologies to help advance companies to new plateaus.

Customizing is also at the center of our mission since every company’s HR department is different.

Contact us to learn more about how we can improve your HR team’s work by scheduling a demo.

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Recruitment concept to hiring of a new talented specialists for international company. Handshake to sign in of employment agreement. Social media hologram icons over the table with documents

When Your Company and Employees Might Need Verification Of Employment

According to cnbc.com, 78% of employees lie during the hiring process.  Many of these falsehoods are on resumes.  Since it is not illegal to lie on a resume, most companies use some form of employment verification to ensure the accuracy of a candidate’s work history.  On the other hand, employers must comply with legal requirements when providing employment information on current or past employees.  

Verification of employment (VOE) requests can come from a number of sources:

  • Government agencies
  • Lenders
  • Collection Agencies
  • New employers

In most instances, they are looking for information on employment dates, wages, and the potential of continued employment.  Potential employers may ask for the reason for termination and the possibility of rehiring. 

What Information Should Be Provided?

Information requests fall into two groups:

  • Employment Verification
  • Income Verification

Each state has rules governing the information that can be released.  For example, some states such as California and New York prohibit employers from releasing salary information to potential employers.  The best option is to ask employees to sign a consent to release information form before releasing employee-specific data.

Federal law prohibits discrimination based on race, religion, color, sex, gender identity, age, disability, nation of origin, or genetic profile.  It’s essential that an organization have well-defined policies regarding VOE information to avoid possible violations.

Employment Verification

Potential employers want to verify that an employee worked at the companies listed in their work history.  Typical VOE requests ask for the following:

  • Employee Name
  • Employee Job Title
  • Employment Dates
  • Employer’s Address

In some cases, they may ask about job responsibilities or performance. Answering these questions during the hiring process can prove problematic.  It is recommended that employers only provide additional information after consulting with legal experts.

Income Verification

States vary on whether salary information can be provided during the hiring process.  Be sure to check with state regulations before releasing wage or salary information.  Employees may want employers to release income information as part of loan application processing.  Government agencies may need information if employees or former employees are applying for assistance.  Consider establishing a policy that requires employees to provide written consent to release income information.  

Circumstances that may require the release of income data may include:

  • Loan Approvals:  Buying or refinancing a home requires income data to ensure that the loan terms can be met.
  • Credit Applications:  Granting a person’s credit request depends on credit score as well as the ability to repay.  
  • Garnishment:  If an employee receives a court-ordered garnishment such as child support or back taxes, income information will be required to determine the amount of the garnishment.  
  • Lease Agreements:  Property managers may require verification of income to ensure the tenants can manage monthly payments.  

 Before releasing information, check with the employee.

When Should Information Be Provided?

The only time an employer must comply with a VOE request is when it comes from a government agency.  These requests will often be very specific and include a reference to a legal statute supporting the request.  The request should also have a comply-by-date.  If it does not, contact the issuing agency for clarification, although it is always advisable to respond to a government request as quickly as possible.

Government Requests

Government agencies may need to verify income to determine child support or alimony payments.  They may request information to help with possible identity theft or confirm fraudulent use of government funds or services.  As long as the information is accurate and given in good faith, an employer should not suffer any adverse effects.

Private Requests

Employers are under no obligation to release information to lenders or other private companies.  However, withholding that information places employees at a disadvantage.  With the number of attempts to steal identities, employers may want to require that employees notify them of potential requests.   Providing employees with a form to date and sign is an easy way to receive notification and signed consent for the release of information.

If contacted by a prospective employer, a current or former company should provide the basic information for employment verification.  Any information beyond the basic should only be provided with the signed consent of the employee.  In some instances, additional information may be needed for individuals working in industries such as education or health care.  Be sure to check with local authorities for guidance.

Third-Party Requests

Requests from third parties such as collection agencies should be ignored; however, employers should check with legal authorities to prepare a policy for handling requests by a third party.

When Should Health and Disability Data Be Provided?

All information regarding an employee’s health or disability status is protected by law.

  • The Americans with Disabilities Act of 1990 makes it illegal to discriminate based on a disability.
  • The Health Insurance Portability and Accountability Act of 1996 protects a person’s health information from release to unauthorized individuals.

Information related to an employee’s health or disability should never be released without consent. When to Get Help?

As a small employer, you may have a few routine VOE requests in a year — maybe every two or three years.  For larger organizations, the number of VOE requests can be significant, especially in times of high unemployment or a booming housing market.  Given the amount of processing time involved, the cost of in-house VOE can run into the thousands.

It’s not just the direct cost of an individual’s time but also the opportunity cost resulting from the person focusing on VOE responses rather than a solution with more impact on the bottom line.  If you’re interested in seeing how much Quentelle’s solution can save you, check out our savings calculator.  Then, contact us to schedule a demo.  

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man dealing with a loan officer

Verification of Employment: Why It Matters

Trust is one of the most important things between an employer and employee. It’s vital that you, as an employer, be able to trust each member of your team to accurately represent their capabilities and perform at that level. Just as it’s essential that employees can trust their employers to provide a stable, safe workplace and reliable paychecks. However, trust doesn’t come from no-where. It is built during the hiring process. A big part of that is verification of employment (VOC).

When you meet a candidate for the first time, your judgment of them should be a blank slate.  They could be your next all-star team member, or they could be someone with a spoofed resume and a few interview buzz-words to throw around. While interviewers are only human and can be fooled by impressive false employment history mixed into legitimate resumes, verification ensures that you pick the right person every time.

Verification of Employment:

  • Increases hiring accuracy and future candidate success
  • Creates accountability among the professional workforce
  • Gives you a real insight into candidate experiences
  • Avoids the risk of misinformed hiring decisions

Why Verification of Employment is Important

There’s no denying that accurate information about job candidates is essential. Knowing a candidate’s past job history can reveal insights into what they can do, what they have experience with and even the work cultures they are familiar with. It can show you, someone who’s risen through the ranks, remained solid in what they do, someone who is brand new with potential, or an old-hand looking for a new home. But inaccurate job histories, therefore, can lead to misunderstandings and even dangerous over-estimation of a new hire’s capabilities if those inaccuracies become successful deceit. This is why VOE is essential for finding good hires, but why is it also so pervasively necessary?

Why Professionals Write False Job Histories

The challenge is that many hiring industry flaws can lead to an inaccurate resume.

1. The Resume Padding Tradition

First, millions of professionals today were taught by their first (and later) job coaches to “pad” resumes a little to make them look better to a new employer. It’s one thing to choose bullet-points over paragraph form or list charity work as past employment. It’s another to fabricate employers, roles, and job duties, but many well-meaning people were misdirected to do this. Resume-padding can vary from mild upgrades in job-title to completely falsified past experiences. Some are trying to cover job gaps or avoid awkward questions. All of these types of resume-padding are extremely common, and professionals are often trained not even to see this as real deception, just actualized ambition.

Resumes padded in this way may indicate a valuable employee who just needs re-coaching in how to accurately write a still-flattering resume.

2. The Rare Con-Artist

Second, there are always a few people who intend to be deceptive. There are those who would rather a high paycheck and eventual failure over legitimately earning a job with their real work history. There are truly deceptive people who are looking to scam a few good paychecks out of a job they’re not qualified for. Most people are earnest and genuinely want a good-fitting job but maybe misled about how to write a resume. But every hiring manager must stay on their toes for the occasional true con-artist coming through the candidate process with a falsified resume and interview buzz-words.

Resumes found to be fully falsified, naturally, are a bad sign for the candidate as a new hire.

3. The Over-Confident

Third, we commonly see candidates who are very confident in their abilities even if their real job history doesn’t reflect the assumed capability. Optimistic and over-confident candidates are more susceptible to resume-padding than most. Those with a less solid grip on professional ethics and those who have been tragically mis-trained in job-seeking are inclined to fabricate the employment experiences that will “win” the job they want. These candidates may approach their resume more like a magazine essay contest, where the most confident interviewer with the best-written fiction may win the job.

Over-confident resume fabrication can be re-coached, depending on the nature and extent of the deception and – often – the age of the candidate. Very young candidates who have misunderstood the process may not be poor hires in the long-run.

4. The Recruiter Resume Deception

The fourth, final, and most frustrating source of falsified job histories is recruiter services. You may have seen this before or have been lucky in your employer-recruiter partnerships. However, the nature of the recruiter industry can lead to some deception. Consider that recruiters (independent and companies) are often paid for a stack of resume recommendations, provided the resumes are well-suited to the roles. Recruiters have been known to use more than a few underhanded tactics to get this commission. In addition to poaching attempts and dummy job listings, some recruiters will also add “keywords” to a candidate’s resume or fill an employment gap with an extended or fake work history. Often, candidates don’t even know that their resumes have been altered before submission to the employer, so falsified resumes from recruiters should result in consultation with the candidate instead of disqualification.

The Right Way to Verify Employment

There are several traditional and technological ways to approach employment verification. The old-fashioned way is to call the employee’s past managers and confirm their employment, role, and performance over the phone. However, with limited time, availability, job politics, and teamwork deception, this approach has a few informational flaws for absolute verification. It’s time to turn to technology.

Today’s hiring managers are looking to the information age and industry software for solutions. For the real report on a candidate’s job history and work experience, you need a service you can trust to provide accurate, discreet resume confirmations. Verification of employment is essential for accurate and successful job hiring. Contact us today to find out more or consult for a quote on your company’s VOC needs.

 

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Hand working with a Cloud Computing diagram

Faster, Safer and More Efficient: The Important Benefits of Cloud-Based Business Technology Platforms

More and more businesses are switching to cloud-based software partners to better manage their HR, payroll, taxes, and other critical aspects of their corporate infrastructure. In fact, the market size for cloud-based technology platforms and universal data integration is growing at unprecedented rates, with the industry set to more than double by the year 2025. 

The key factors driving this rapid transformation are the numerous benefits — for both the business and the employees — that come with implementing a cloud-based platform. Whether you’re a CHRO or CFO, understanding these critical advantages can help you to determine better when, not if, your company should make the transition.

Human Resources Management Systems For the Modern Business: What Is Cloud-Based Technology for Operations Management and Human Resources?

Over the last few decades, best practices for managing day-to-day business operations — from human resource issues like employee screening to payroll tasks like employment verification requests — have evolved considerably. 

Gone are the rooms filled with boxes, the filing cabinets stuffed with employee files, and the stacks of forms that need to be filled out manually. 

Yet, many companies are still using fragmented software ecosystems: One platform for unemployment tax planning. Another service for managing employee screenings. A separate tool for cybersecurity (approximately 80% of businesses have suffered a cybersecurity incident in the past 12 months, warns Security Magazine). And so on and so forth.

Cloud-based technology platforms combine all these aspects of your business into one system, creating a more holistic approach to data integration. When you transition your business operations and software to a single unified cloud-based approach, you and your staff have a single point of reference for all your essential business management tasks. 

And because it lives in the cloud (i.e., a secure, protected off-site server instead of a local, physical hard drive in your office), keeping different files and data updated and secure across teams, departments and locations are effortless. 

This can create several specific benefits for your organization, no matter your industry or niche.

The 5 Benefits of Cloud-Based Technology Platforms for Today’s Modern Corporations

1. Improved Efficiency

When your data is combined on the cloud, your team no longer has to shuffle through reams of paperwork, chase down the latest version of an employee file, or ask different departments what the status is on a tax document. 

Instead, everything is accessible on-demand to those who need it:

  • Data is updated instantaneously.
  • Files and information are accessible anywhere and at any time.
  • Paperwork, such as tax documents or payroll records, can go entirely paperless for improved employee productivity.

If another employee needs to see a file or a different department is auditing something, those involved can rest assured that what they’re seeing is current and up-to-date.

This enhanced efficiency can lead to:

  • Improved employee morale
  • A reduction in costly errors
  • Enhanced productivity so your team can focus on more important work.
  • Cost savings across the board

2. Plug-and-Play Scalability

With a unified approach to data integration, apps and services can integrate directly into your cloud-based platform to meet your business’ growing needs. You can finally say goodbye to dreaded IT questions about software installations, updating a version of a specific tool, different departments using incompatible systems, etc. 

Take employment verifications as one example. As your business expands, your team will steadily become inundated with more paperwork regarding employment verification. 

In one Quentelle case study, a payroll director at one Fortune 500 said their staff was spending a “vast amount of time dealing with verifications each year.” With a cloud-based platform, this company was able to integrate quickly with a cloud-based employment verification provider. Within a year, the case study client saved thousands of hours of employee time.

3. Faster Innovation

Continuous software licensing and technology upgrades can be costly, yet ignoring updates can leave your business open to security threats or locked out of innovative new features. 

A unified, cloud-based platform ensures upgrades and deployment of said updates can be instantaneously and conveniently rolled out across the board, helping your business better adapt to a continually changing environment.

4. Increased Security

According to Security Magazine, nearly four out of 10 C-level executives said that cybersecurity problems negatively impacted their company’s ability to attract new customers.

Local servers and drives need constant patches, updates, and maintenance to protect your team’s data and customers’ information. But it’s not just about malicious viruses or unscrupulous hackers. Security threats can even come down to human error: 

  • A shared computer where an employee forgets to log out of something
  • Someone is accidentally deleting important data.
  • A power outage that wipes out your computers

Cloud-based computing with the proper cybersecurity best practices and protocols offer:

  • Constant data backups 24/7/365 security monitoring and network management support 
  • Disaster recovery and backup 
  • Audits and assessments to identify potential risks to your business
  • And more

5. Smart and Savvy HR Insights

The wisest business decisions are built off of smart, strategic business data. Yet, in traditional non-cloud environments, data lives on so many different systems that it can be challenging to decipher the right approach to a problem or situation. 

The best cloud-based platforms for HR and payroll professionals offer predictive analytics using artificial intelligence. Because all the data is unified in one system, the AI can provide powerful insights to drive the boardroom’s decision-making processes.  For instance, Quentelle’s cloud-based platform has built-in AI that compiles and analyzes your data to help you to spot trends and patterns to improve operational effectiveness. 

Is Your Business Ready to Access These Benefits?

At Quentelle, technology and innovation are our team’s passion. Our cloud-based platform offers you a secure and convenient approach to unified data integration. Our proven solutions powered by advanced technology include:

  • Unemployment management claims 
  • Tax planning 
  • Point-of-hire tax credits 
  • HR analytics 
  • Cybersecurity 
  • Employment verification 
  • And more!

We’ve worked with everyone from small businesses to global conglomerates to transition their teams to cloud-based platforms. And we would love to work with you. To learn more about the benefits that cloud-based technology platforms can bring to your company, schedule a demo today!

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Employee Needing Verification? Data Security is Vital

In 2017, one of the largest data breaches in history occurred, impacting 143 million US consumers. Data breaches are a regular thing, to the point where smaller breaches don’t even make the news anymore. They do, however, impact millions of people every year.

The fear of a data breach is a huge pain point for employers who have an employee needing employment or income verification. Data security improvements, however, can help both companies and employees feel comfortable when verification is needed.

When is Employment or Income Verification Needed?

Most employees rarely need employment or income verification, but when they do the need is significant and urgent. For the most part, verifications are needed to apply for a loan, when changing jobs, and when soliciting government assistance. Some landlords may also request employment and income verification as part of the tenant screening process.

It’s vital for employees that verification is done quickly and securely. The general process is that the lender or other third party will contact the employer and for verifications. This can lead to a potential security risk for your employee’s personal data, and because of this employers may often be reluctant to give any information.

Why Do Companies Outsource Employment Verification?

For small companies, dealing with very occasional inquiries can generally be handled by someone in Payroll or HR without much of an issue. Larger companies, however, typically outsource this function. There are a couple of reasons to do this. The first is that employment verification is a rote task that can be very time-consuming. The other is that a specialist can provide consistent information quickly. In fact, third party administrators have figured out ways to automate the completion of verifications, and report back to the employer on how many requests are coming in.

However, this also brings up reasonable concerns about data breaches. The companies handling this data are obvious targets, due to the number of records they are working with. There are also privacy and compliance concerns.

This means that companies need to choose a provider that is taking steps to secure the data and protect the privacy of the company and its employees at all times.

What Should You Ask Your Vendor?

There are a few things you should ask or check with a potential verification of employment vendor. The first is who is allowed access to their data. In some cases, vendors may allow unlimited access to certain third parties, such as debt collectors.

This is an obvious security loophole; avoid any vendor that gives unlimited access to anyone except government agencies as required by law. While debt collectors may be authorized to request information, nobody should be poking through the database without some checks.

Also ask your vendor what they are doing to comply with various privacy laws. For example, if you have employees in California, the CCPA applies. Make sure that your vendor covers every employee you have, even employees residing overseas. Be honest with a potential vendor about the locations of remote employees and make sure that they can handle your specific situation.

You should also talk to your vendor about improved security practices. For example, it is good practice to minimize the use of Social Security Numbers so they are stored in fewer places. You should also make sure that your own systems are kept patched and up-to-date.

Finally, make sure you know exactly how they are processing any personal data. Check reports regularly to ensure nothing odd is going on. You have a certain shared responsibility with them to ensure that data breaches don’t happen.

Be transparent with your employees and provide them with this information. In the past, employees have been surprised to be involved in a breach when they did not know that their data was being processed by a third party.

How Else Can I Protect My Employees?

First of all, make sure to choose a verification of employment provider who has not recently experienced a major breach or who, if they have, have been very transparent about how they intend to fix the issue.

Remember that whoever you choose will have access to your employees’ most sensitive information and that you hold if not legal, then at least ethical responsibility to protect that information.

Also make sure that your own HR systems are patched and secure and that all employees are trained not to give out sensitive information. If somebody calls asking for verification of employment, train all employees to redirect that person to your VOE vendor rather than giving anything out; an experienced provider will know how to ensure that the person is indeed authorized to get that information. Without that check it’s possible to give out sensitive information to, for example, a stalker.

If there is a breach, you are responsible for informing your employees and giving them advice on  how to prevent identity theft. At the very least, affected employees should freeze their credit report so that inquiries on their credit cannot be made without permission.

What Else Should You Look For?

Look for a company that has a good reputation and is getting good references and reviews. Make sure that they are known for being reliable and providing accurate information to both you and third parties requesting information. A mistake in employment verification can cost your employee a lot, especially if they are trying to purchase a home or take out another large loan.

Also choose a company that has a focus on cybersecurity. It should be one of the top things they talk about, along with accurate reporting. A company that also offers security services may be a good choice. Smaller providers may or may not be better, but can offer customized solutions that also help with payroll and taxes.

If you are looking to outsource verification of employment, one of your primary concerns is going to be the security of the data and the privacy of your valued employees. Quentelle offers the highest levels of security, having developed solutions after the large breach in 2017 designed to ensure that their clients are as protected as possible.

Contact us to find out about our VeriSafeJobs secure, automated verification of employment solution with powerful, accurate reporting, SOC I & II certification, and an easy to understand interface.

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