Good employees work hard for you, and you’ll want to make their lives easier too wherever you can.
One way you might be able to help them is through employment and income verification. This is where you enable your employees to share their payroll information directly with their chosen service provider.
One in two UK adults will apply for a financial or credit product with the next two years, according to a report by consumer credit reporting company Experian.
It can be stressful borrowing money for a major purchase, such as a taking out a mortgage for a house. As their employer, your employees might need your help to verify their employment or income.
In this article, we talk about how you can manage this process with ease, so you can say goodbye to the days of hunting for necessary paperwork and dealing with additional admin time and resource.
Here’s what we cover:
What is employment verification?
Employment verification is a process where an employee may need their employment credentials verified by their employer as part of an application for a variety of things.
For this article, we’re focusing on a type of employment verification where current employees, looking to borrow money from lenders, are required to provide verification of their employment information.
Employment verification is essential for mortgages and other credit providers, as lenders want to verify their applicant’s income and understand whether their income is stable.
It helps them determine whether an applicant should be able to maintain the loan repayments.
When employment verification is required
When your employees borrow money for a mortgage or other loan, they might need your help with employment and income verification.
Your participation in employment and income verification can streamline your employee’s journey to accessing the products and services they can afford.
You can play a significant part in ensuring credible information is shared.
Managing the employment verification process
When employees need to share data from their payroll information with a lender, they might ask you for the required information.
Alternatively, it might be the lender that contacts you directly to provide income documentation, which the employee must authorise you to supply.
If you haven’t stored this digitally through payroll software, you’ll have to find this documentation manually, whether it’s on paper or in a computer system.
Once you’ve found the relevant documentation, you may need to download, print, or email the files, contact the employee and check they have everything they need, or liaise with the lender or other business that needs the employee verification from you.
You may need to do even more work for mortgage applications—sometimes lenders need a letter as part of the employment verification process to verify the information provided by the employee.
You can see that employee verification can be quite an unwieldy process, prone to human error, incurring time and resource.
How payroll software can automate this process
A benefit of using payroll software is that, unless you disable the feature, employees can request that the relevant information is sent straight to their service provider, without involving you in the process.
This employment verification feature enables your employees’ request and authorises the sharing of their verified employment and income data, resulting in a process that takes seconds instead of days.
With an automated service, you no longer need to respond to individual employment verification requests. You can have the confidence that your employees has consented to share the required data with the prospective lender.
That’s an awful lot of admin wiped off your plate.
When managing people processes, one of your priorities is to keep employee data safe.
By utilising the employment verification feature in your payroll software, you can automate how employee verifications are made, saving time and enhancing security.
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