Ryan Sandler is the Cofounder & CEO of Truework, a modern solution for automating employment verifications. Connect with Ryan and the Truework team on Twitter, Facebook, and LinkedIn.
If you’re an HR veteran, chances are that you’ve had to create more than just a few "proof of employment" letters. For teams with a lot on their plates already, these requests can create unnecessary challenges due to their frequency and how long they take to generate.
There's no shortage of questions to consider. What template should you use for the letter? What information should be included? If you're not careful, you can run the risk of letting sensitive employee information fall into the wrong hands.
We'll cover three different scenarios that require proof of employment letters and outline what information should be shared in each.
Renting a Home or Apartment
More often than not, renting a home or apartment requires applicants to show proof that they actually work at the company they’ve listed on their application.
In this scenario, the landlord or real estate company is the party requesting proof of employment. They care about where the applicant works, what their job title is, and how much money they earn. All of these data points can help solidify an employee’s rental application, giving them the best chance to secure a lease.
If you receive a letter request for an individual going through this process, be sure to include these key points:
- Place of employment
- Start date
- Gross salary
Although it isn't required, you may want to comment on the employee’s probability of continued employment or eligibility for a bonus to further strengthen their application.
Starting a New Job
From home addresses to financial records, HR teams are constantly handling and processing sensitive employee information. This makes data security a crucial responsibility for any HR leader during the employment verification process.
Between managing HR and running payroll, it’s no secret that people teams face a long list of to-dos each day. Of those, few come up more frequently than employment verification requests. Thankfully, technology has made it easier than ever to streamline how these are processed, saving your team time and money.
If you’ve ever had an employee apply for a loan, you’ve probably received an email or phone call from someone asking for a verification of employment. While loan applications are just one example, nearly any major life decision can call for one of these requests.
Verifications can range in length and format, from short letters to lengthy forms that include detailed payroll information. These disparities can make it difficult for HR pros to streamline how they process verifications.
At larger companies, verification requests come in almost daily. At companies like these, manual verifications can cost teams hours per week. For HR managers, this means time wasted filling out repetitive paperwork and sending faxes.
employment verification at least once a year.
Verification processing is rough for HR, but it can be even worse for employees. Home buyers know how stressful choosing a lender and securing a loan can be. When employment verifications take days (or even weeks) to fulfill, it creates unnecessary friction between HR teams and employees.
Making it Easy
Until recently, businesses had limited options for automating verifications. Some of these early solutions came with serious security and privacy concerns. Thankfully, HR professionals have new alternatives to choose from today.
Verification automation software makes it easy by taking the process off HR’s desk and into the cloud. After integrating the software with your existing HR and payroll platform, verification requests automatically trigger an email to the employee being inquired about. Once the individual confirms that the verification request is legitimate and expected, the requester is granted access to the information they need. That takes your HR team out of the equation, saving hours of time spent on filling out paper forms or faxing documents.
In addition to looking for easy-to-use solutions that follow the above workflow, be mindful of security. Verifications contain sensitive data, like employee salaries, so you’ll need to ensure the software you’re using is safe. Use a tool where:
Employee and employer information is only shared through encrypted channels, or transmitted over HTTPS using TLS 1.2.
Sensitive employee information is only shared with third parties after receiving explicit employee approval.
That last point is critical. When HR managers are asked directly to verify an employee’s information, there is no immediate guarantee that the request is coming from a legitimate third party. Be sure that your verification software asks for employee permission instead.
Automating employment verification eliminates headaches for both employees and employers alike. When you integrate Namely with Truework, you streamline a traditionally cumbersome process, freeing up hours for your HR team to focus on strategy and other initiatives. To learn how the Motley Fool’s HR team uses the integration to save over 100 hours per year, click here.
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