Finance can use a compliance audit to identify holes in the employment verification process, improve efficiencies and reduce associated costs.
Employers are contacted with employment verification requests by other employers, government agencies, mortgage lenders, property managers and other consumer-related entities fairly often. These arrive via phone calls, faxes, regular mail and even emails.
Compliance with government agencies is generally required, but nearly all others are optional. However, employers want their employees to be happy, and so they strive to promptly comply with legitimate requests while ensuring compliance with privacy acts.
As the number of employees increases, the frequency of employment verification increases, which can raise the level of complexity and the risk of sharing private information with the wrong entity, such as a collection agent or potential identity thief. In addition, at a smaller business, one or two individuals may handle such requests, but at large organizations, hundreds of individuals in various locations may receive these verifications of employment requests.
Thus, the actual dollar costs increase, but so does the human toll. Employees providing the information may be afraid of making mistakes, and those awaiting verification may be frustrated by the response time.
Use a Compliance Audit
Since it's often the payroll department that typically resides in the finance division or department and responds to these requests, finance leaders can use a compliance audit to determine how smoothly the employment verification process flows internally. This audit can identify holes in the process and provide suggestions to improve efficiencies and reduce costs.
Implementing these improvements, which may include outsourcing or automation of specific tasks, can greatly enhance the security of the employment verification process and improve workflow. Thus, a successful compliance audit can speed up the entire process for both employees and those pursuing verification.