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A Guide to Employment History Background Checks

When hiring for a new position, it is crucial to ensure that candidates have the qualifications and experience they claim. Employment history background checks are a vital component of this verification process. They help employers confirm that the information provided by job candidates is accurate and truthful. 

Posted by: David Garcia

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What are employment history checks?

Employment history checks are a type of background screening designed to verify the details provided by candidates regarding their past employment. The process involves confirming various aspects of a candidate’s previous jobs, including the companies they worked for, their job titles, employment dates, and sometimes even the responsibilities and achievements associated with those roles.

The primary goal of these checks is to ensure that the information listed on a resume or job application is accurate and truthful. By verifying this information, employers can avoid potential issues related to false claims, exaggerated qualifications, or undisclosed job history. These checks are critical in maintaining the integrity of the recruitment process and ensuring that candidates are genuinely suitable for the roles they are applying for.

In addition to validating the basic details of a candidate’s employment history, these checks can offer insights into the candidate’s career trajectory, stability, and professional development. This information can be invaluable for roles that require specific experience or expertise, helping employers make more informed hiring decisions.

What does an employment history check show?

An employment history check provides a detailed view of a candidate’s work background, revealing several key components. These include:

  • Employment Verification: Confirming whether the candidate worked for the companies listed on their resume. It involves contacting previous employers or using verification services to validate the employment details.
  • Job Title: Ensuring that the job title provided by the candidate matches the actual role and responsibilities. It helps verify that the candidate’s claimed experience aligns with their job duties in previous positions.
  • Employment Dates: This verifies the start and end dates of each job listed on the resume. Accurate dates help identify any inconsistencies or gaps in the candidate’s employment history.
  • Reasons for Leaving: In some cases, the reason for leaving a previous job may be verified. Verifying the reason can provide additional context about the candidate’s career transitions and reasons for changing positions.
  • Salary Information: Although less common, some employment checks include verification of salary history. It can be relevant for roles where compensation history is used to assess candidates’ suitability or negotiate salary offers.

Each component provides valuable insights into the candidate’s work history and helps ensure they have the appropriate experience and qualifications for the role they are applying for.

How is employment history verified in a background check?

Verifying employment history involves multiple methods to ensure accuracy and reliability. Here are the primary techniques used in this process:

Contacting previous employers

One of the most direct methods for verifying employment history is contacting previous employers. The process typically involves contacting the Human Resources (HR) department or the candidate’s former supervisors to confirm the details provided. 

Key aspects of this verification include confirming the job title, which ensures that the job title listed on the candidate’s resume matches their role. 

Validate employment dates. 

A great way to ensure the validity of a candidate’s job history is to check their proposed employment dates. Candidates have been known to exaggerate the length of time spent in a position, so checking dates is a helpful way of ensuring honesty. 

Inquire about reasons for leaving. 

Where permissible, obtaining information about why the candidate left the previous job can provide additional context, though this is rare. Finding such details may be helpful when speaking to the candidate, as you know where to direct the conversation to gain a clearer picture.

It’s an effective method but time-consuming, particularly if the previous employers aren’t being very responsive or if the company has changed contact details. Additionally, some companies may have policies limiting the information they can provide, affecting the verification depth.

What’s more, a candidate’s reason for leaving their previous role won’t typically be available when using online verification services, so contacting previous employers is usually necessary. 

Reviewing employment records

When direct contact with previous employers is not feasible, reviewing official employment records can be an alternative verification method. Important documents include pay stubs, which provide evidence of employment and salary. 

The W-2 Forms are official tax forms that show the employer’s name and the income earned. Finally, the Proof of Employment Letters are formal letters from previous employers that confirm employment details.

These records can help verify employment when other methods are unavailable or additional confirmation is needed. Different forms of documentation may be applicable and necessary if you reside outside of the US.

Conducting Social Security Number checks

You can use the Social Security Number (SSN) check to verify employment history by accessing historical employment records associated with the SSN.

Plus, there is cross-referencing information, which involves comparing the retrieved records with the information provided by the candidate. It can help identify discrepancies and confirm employment history, though it requires strict adherence to privacy regulations and may not be suitable for all candidates.

Employment history checks are crucial for confirming the accuracy of information candidates provide, ensuring they meet the requirements for the role, and assessing their overall suitability.

Should employers be concerned by employment gaps on resumes?

Employment gaps on a resume can be either a cause for concern or a routine aspect of a candidate’s career history, depending on context. Understanding these gaps is crucial for making informed hiring decisions.

Short periods of unemployment are generally considered normal and may not be a significant issue. On the other hand, longer or unexplained gaps warrant closer examination. Most reasons for employment gaps can be addressed during the hiring process

For instance, personal reasons such as taking time off for family matters, health issues, or personal development are legitimate and acceptable. Such gaps may not negatively impact their suitability for the role if they can demonstrate how they used the time productively.

Career changes can also result in employment gaps. Individuals might take time off to switch careers or pursue further education, a positive sign of personal growth and a commitment to career development. Understanding the nature of these changes can provide insights into the candidate’s motivations and future potential.

Conversely, unexplained or lengthy employment gaps may raise concerns about a candidate’s integrity or reliability. Addressing these concerns directly with the candidate is essential to understand the reasons behind the gaps. 

Regardless, the focus should remain on understanding the candidate’s qualifications and fit for the role rather than making judgments based solely on gaps in their employment history. This balanced approach helps ensure a fair assessment of each candidate’s potential.

Why is accurate employment history important?

Accurate employment history is crucial for several reasons, each contributing to the hiring process’s overall effectiveness and the new employee’s performance.

Ensuring job fit

Ensuring a good job fit is essential for multiple reasons, all of which influence the individual and the organization. When employees are well-matched to their roles, it significantly enhances job satisfaction, performance, and overall organizational success.

First and foremost, a good job fit maximizes employee satisfaction and retention. When you match individuals with roles that align with their skills, interests, and career aspirations, they are more likely to find their work fulfilling. This increased job satisfaction translates into higher engagement and motivation. As a result, employees are less likely to seek other job opportunities, which helps reduce turnover and the associated costs of recruiting and training new staff.

Building trust and integrity

Trust and integrity in the hiring process help ensure that candidates’ assessments are fair and accurate. When employers and candidates approach the hiring process honestly, it allows for a more transparent evaluation of qualifications, skills, and experiences. 

Such transparency helps employers make informed decisions based on accurate and complete information, ultimately leading to better hiring choices and reducing the risk of unexpected issues later.

A hiring process rooted in trust and integrity fosters a positive work environment from the outset. Candidates who perceive the hiring process as fair and transparent are more likely to feel respected and valued. 

A positive perception can strengthen relationships between new hires and their colleagues, enhancing team cohesion and workplace morale. Conversely, lacking trust and integrity can lead to skepticism and dissatisfaction, affecting job performance and employee retention.

Preventing costly hiring mistakes

Hiring mistakes can be expensive. The costs of recruiting, onboarding, and training a new employee are significant. If the employee turns out to be a poor fit or fails to meet expectations, the organization may incur additional expenses related to their termination, replacement, and potential legal issues. 

These costs can quickly add up, impacting the company’s bottom line. By preventing such mistakes, organizations can protect their financial resources and ensure that their investment in hiring is well-spent.

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David Garcia

Co-founder and CEO of ScoutLogic

Industry leader in the bulk background check world. With his strategic acumen and expertise in the HR sphere, specifically in hiring, recruiting, legal compliance, background checks, and resume screening, he’s an invaluable asset and consultant.

David's counsel extends across the boards of ScoutLogic, YipitData, and Supplier.io, drawing from his impactful stints on the boards of Infutor and Avetta. With an extensive 25-year journey, he champions unparalleled B2B commercial leadership within data & analytics, significantly shaping the HR landscape.