Verification of Employment (VOE): What It Is & How It Works
Making sure your firm employs quality applicants can be complicated. While there are countless genuine candidates, there are also those who aren’t as truthful. As competition for loans and jobs grows, the data many individuals offer on their CVs has become increasingly incorrect.
Fortunately, employers and other entities that want to check a person’s employment background can use verification of employment to help do so successfully. This article explains what VOE is and how it works, so keep reading to discover more.
What Is VOE?
Verification of employment (VOE) refers to a request from other companies, entities, VOE loan officers, etc. for input on current and past employees. They can happen via email, phone, or fax and can encompass confirming the employee’s title, employment date, base pay, hours worked, etc.
VOE Types
There are several types of verification of employment, depending on what you need it for:
Employers
Some employers may reach out to you if they’re thinking about hiring your former employee. They do this in order to confirm that the employee worked the position and dates displayed on their application.
Your firm has to decide what data you will share with future employers. While some give verifications to third parties, others reject completing these kinds of verifications, unless there’s a state law demanding them to conduct it.
The verification can check for disciplinary actions, history of certifications, pay history, alcohol use, and more. Some companies may also include additional state requirements to prevent negligent hiring.
Mortgage Lenders
While the law doesn’t require employers to conduct VOEs from lenders, completing them can assist employees in getting a loan. It’s vital to give true information in good faith. Note that loan officers usually offer a borrower’s authorization form.
State and Federal Compliance
An example of a state form is a request for verification of wages regarding child support. It can also be used to help an employee get assistance via government programs or to provide proof of stolen identity.
Answering these forms untruthfully can lead to legal consequences and need to be completed within the time frame found on the verification form.
Form I-9
Form I-9 refers to the obligatory verification form completed for new employees that confirms their eligibility to work in the US.
Rentals
Some employees may need a verification of employment to provide it to a future landlord. Also known as proof of employment, this type of VOE is usually conducted in letter form.
State Unemployment
If you’re a former employee applying for unemployment benefits, the state will require verification of employment from you. While the application form can vary between the states, the data that is usually needed is your total earnings and the reason for ending.
Collection Agency
If a collection agency sends you a VOE request regarding a former or current employee, know that you are not legally bound to react.
Employers and Entities Must Ask for Permission
If you receive a letter asking for data concerning former or present employees, you typically don’t have to respond. If you choose to respond to non-governmental requests, you can ask for a written permit from the employee before continuing.
However, if these come from government entities, you’re obliged to respond. Often, the industries that the governing bodies control ask for such data because of legal responsibilities. In this case, even former employers may be legally bound to reply.
Information Is Requested from Former Employers
Although requesting information from previous employers is often automated, some still prefer to manage this manually via phones or letters. Former employers are contacted and requested information regarding a person’s employment and experience within the company.
While former employers aren’t obliged by law to reply to such requests unless they are made by the government, they typically respond and provide the requested information.
What Information Is Collected?
Entities collecting data concerning VEO may request various details from former employers in order to provide proof of the authenticity of a person’s application. Below are the most common ones:
Title: An applicant’s role or title in a firm can assist in determining what additional skills they may have acquired on the job during the time spent there, allowing companies to evaluate skills for managerial duties and senior positions within their company.
Timeline: Knowing the length of time an employee has spent with past employers shows you their attitude towards commitment to their roles and company loyalty. With this data, business owners can establish whether an applicant is worth the investment. For financial entities, this data can assist in determining the income stability of a person and the amount they can anticipate gaining over a period of time.
Responsibility and salary: Considering a person’s past salaries and job responsibilities can help you understand their anticipations when it comes to the position they are asking for. If an individual is experienced regarding the role they want working for a similar salary, they could be the ideal candidate for that position. Salary information can also help financial entities decide whether they should provide mortgages and other types of loans to particular individuals.
Termination reason: There can be various reasons for the end of an individual’s previous job. Usually, these causes are reasonable and not harmful to the companies they worked in or themselves. But, if an applicant’s contract was terminated due to troublesome or unreasonable behavior, they likely aren’t worth the initial investment.
How VOE Works
There are several ways to complete the verification of employment. These are listed below.
Through the Organization
One of the most common ways for an organization to complete VOE is by conducting it themselves. Usually, an employer, HR leader, or hiring manager will request the documentation that demonstrates the applicant’s employment or get in touch with workplaces the candidate has worked for.
The goal of reaching out to the candidate’s former employers is to see whether they were employed in those companies, the dates of their employment, the cause for termination, title, and responsibilities. Prospective employers can also check how the applicant behaved and cooperated with their previous colleagues. However, a business first has to inform the applicant of the VOE before continuing with the process.
Note that this process can be both expensive and time-consuming for the business. That’s especially true when there are a number of applicants to check, and they all have rich work experience.
Through a Third-Party Background Check Services Organization
You can also conduct VOE via a third-party background check company. Working with such companies can save you time and allow you to concentrate on other duties. With a third-party company, you can have an extensive background check that provides data other than VOE, such as a credit check.
Through VOE Database Providers
VOE providers are organizations that gather and archive employment data of people who were and are employed by businesses that work with such organizations, making VOE easier. Nevertheless, employers need to follow the regulations of the Fair Credit Reporting Act (FCRA).
VOE Can Help Your Business Thrive
Using VOE can help you employ top talent and boost employee retention. By checking each candidate’s employment background to verify the truthfulness of their resume, you can improve your business’s bottom line in the long run.
While VOE is most commonly used in recruiting processes, it can also be valuable when you need to decide whether an individual is worth the risk when it comes to loans, business partnerships, and more. Make use of it and have peace of mind.
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