Reference vs Employment Verification Check: What’s the Difference?

Employment verification checks and reference checks are often considered the same thing, so it’s not too difficult to see where the confusion comes from. Both checks are essential when validating a candidate’s employment history. And both are invaluable for finding the perfect fit for your organisation. Yet, despite these similarities, these checks have two very different roles in the recruitment process.

Lets look at both of these pre-employment background checks, identify any differences, and discover why these are so important when hiring. 

What is an employment verification check?

Let’s say you really like the look of a candidate. They have 3 years’ experience in a similar role. They’ve listed their achievements in their previous role but haven’t included a start or end date. How can you tell if a candidate is truthful about their previous employment? This is where employment verification checks become invaluable.

Put simply, an employment verification check helps to validate your candidate’s employment history, ensuring what is on their CV is the truth.

How to conduct employment verification checks 

Employment background checks are an important part of the pre-employment screening process and determine whether a candidate is eligible and qualified to work for your organisation.

Traditionally, verifying a candidate’s employment history was a very laborious task, involving calling multiple organisations to confirm data. This would have a detrimental impact on time to hire, so many organisations have turned to technology and automation to help save time and money when validating employment history.

What does an employment verification check show?

Employment verification checks should take place for every hire. These checks work by analysing a candidate’s CV and evaluating whether the information provided by the candidate is truthful.

If a candidate has provided false information and hasn’t disclosed any previous employment history, it will soon become evident following an employment verification check. 

The following is some information you would expect to find in an employment verification check: 

• Job role start and end date 
• Previous employer/employers
• Job titles 
• Roles within a business
• Reasons for termination/leaving the organisation
• Eligibility for rehire 
• Any extra information regarding their employment 

Using this information, employers can make an informed decision on the candidate’s potential employment. 

Why are employment verification checks important?

Like right-to-work checks, DBS checks, and other types of background screening, employment verification checks identify if a candidate is eligible to work for your organisation. 

Failing to conduct an employment verification could result in underqualified, unskilled and potentially harmful candidates getting a job. 

1. Make a candidate’s employment history is correct

With today’s market being so competitive, candidates will do anything to get ahead and get to the top of your shortlist. This even includes providing false information on their CV. 

You might think that lying about skills, qualifications, and past experience is rare, but in fact, it’s quite the opposite. 

An estimated 40% of job seekers lie on their CVs, and a further 75% of employers have identified false information on CVs.

With candidates willing to provide false information, it’s crucial for employers to identify what is true and which candidates are actually qualified for the applied role. 

2. Ensure candidates can take on the right responsibilities 

When surveying CVs, the smallest difference could decide whether a CV is successful or rejected.

Job titles and job role responsibilities are major factors in an employer’s decision-making that could be the difference between a shortlisted CV and rejection. 

Each job title has its own responsibilities, and providing a false job title could portray a false idea of ability. Using verification checks, employers can identify if there is any discrepancy between the actual job title and responsibilities and those outlined on a resume. As a result, employers can be assured their new recruits are up to the new challenge. 

3. Uncover the true reason behind dismissal or separation 

Candidates previously dismissed from an organisation will likely not want to disclose the reasons behind their dismissal. Some will even lie to cover up their previous mistakes. 

Why would they do this? It could be embarrassment, or it could lower their chance of getting the job. No matter the reason why, uncovering this information is crucial. 

Employment verification checks ensure any reasons for dismissal or separation from a previous workplace are disclosed for full transparency. 

This gives employers a clear picture of the candidate in front of them, a look into their character, and their attitude and conduct during their previous organisations. 

4. Identify the reasons behind any employment gaps 

The stance on employment gaps has changed over the years. In the past, these were seen as lazy and looked down on by recruiters and employers. Now, it is perfectly normal for the best talent to have ‘time off’ between roles. 

However, as this has become more acceptable, some candidates have taken advantage of this to cover up past employment they don’t want on their CV. 

These in-depth checks can identify if job seekers lie about gaps in their employment and uncover the truth behind their employment history. 

What are reference checks? 

Reference checks, similar to employment verification checks, authenticate a candidate’s previous employment history. 

Reference checks involve an organisation contacting a candidate’s previous workplace to understand their responsibilities, work performance and key skills. This type of screening ensures any candidate is qualified and fit to work for the organisation they’ve applied for.

Typically, recruiters, employers or HR professionals carry out reference checks, but this can take time, something not many of us have to begin with. 

To help speed this process along, reference checks are often automated through applicant tracking systems and other hiring software. This has dramatically changed how organisations perform reference checking, making the process quick and efficient.

Why is reference checking important?

Reference checking allows employers to look in-depth into their candidate’s’ previous employment and gather extra information from previous employers. This type of information may include contributions, key skills, and overall attitude. 

Gathering this extra information before making a hiring decision is crucial, as it gives you the best idea if a candidate is really right for your organisation. 

1. Validate candidate information 

Similar to employment verification checks, reference checks ensure candidates are telling the truth about their previous employment, their job roles and their contributions. This information ultimately allows employers to make better-informed hiring decisions.

2. Find out if they’re a cultural fit 

Reference checks involve discussing a candidate’s attitude to work and people. Discovering this information from a previous employer can be very telling. You can find out whether a candidate is a right fit for your business or if they simply don’t fit your culture. 

3. Check they’re up to the task

Reference checks also give a clear indication of what previous employers think about their work standards, attitude and overall performance. Reference checking allows hiring employers to gain insight into what a candidate is like as an employee, how they perform at their job and whether they’ll be able to take on the responsibilities of their new role. 

Reference check or employment verification check: Which do I need?

Reference checks or employment verification checks – which one do you pick? They’re quite similar. So what are the key differences between these two essential checks?

An employer or hiring manager often carries out reference checks as a candidate gets closer to hiring. This process can be completed manually by contacting a candidate’s previous employers or by using third-party software or an applicant tracking system – ATS with a reference check integration.

Employment verification checks, however, are carried out by a third party as they investigate further to validate a candidate’s employment history,  

Another key difference is in the information each check collects. Employment verification checks gather factual information, including employment start and end dates. Reference checks, on the other hand, will gather data such as key skills, attitude to work, personality and other opinion insights from previous employers. 

Introducing…

Conduct employment verification checks with Talos360

Whether you need to confirm a candidate’s employment history or gather extra details through candidate reference checks, Talos360 is on hand to help.

With Talos360’s background check integration and reference checking portal, it’s never been easier to validate candidates’ employment history. With employment history checks integrated within Talos360’s applicant tracking system, there is no need for multiple log-ins, saving both time and money.

 Talos ATS has access to over 20 background checks, including employment verification, DBS checks, right to work, and so much more.

Schedule your demo or find out more today. Ensure hiring safety with background checks from Talos ATS.