Employee compensation verification is precisely what it sounds like: a prospective employer validating the compensation earned by a candidate during the previous employment tenure.
According to a 2022 survey by ResumeLab, one of the top 5 lies told by candidates is about compensation (the other being experience, tenure, skills, and responsibilities). Compensation verification is increasingly becoming a necessary check under the larger background verification (BGV) umbrella to establish the correct remuneration.
When do employers go for Compensation Verification?
The compensation verification is typically conducted when a job is being offered or negotiated.
How is Compensation information verified?
Employers can verify prior compensation using the following methodologies:
- Directly contacting a former employer
You can just pick up the phone and dial the HR division of the previous employer. Or just drop in a verification email. You may attach a salary slip given by the candidate, and ask to verify the authenticity. Sounds simple, right?
However, most organizations have a non-disclosure policy about the workforce’s compensation. Hence, in majority of the cases, it gets challenging to validate the compensation. As part of prior employment verification, you may be able to validate the designation, tenure, etc., but the compensation datapoint in an email response would be blank or “Confidential”, or just “NA”.
- Requesting for documents such as bank statements
Another simple way to validate the salary could be through documents such as offer letters, compensation revision letters, and/or bank statements.
The challenge with this methodology is that if a prospective employee wants to “game the system”, and submit a bank statement with inflated compensation details, there are a plethora of free tools (and tutorials!) online on how to do it.
OnGrid’s Compensation Verification
OnGrid offers a check called Compensation Verification (code: COMPV).
COMPV uses a combination of the 2 methodologies listed above and controls the limitations. COMPV establishes the validity of a compensation claim without disrupting a respective organization’s internal HR policies. The only required input would be the bank account number and an image/PDF of the bank account statement covering the salary credit, along with the consent of the candidate. The verification process would validate the following data points:
- Was the salary actually credited? (Yes/No)
- Did the salary amount match? (credited amount versus the amount claimed by the candidate)
To know more about employee compensation verification, book a free demo now, or call us at 080 4709 4800!
OnGrid is an ISO-compliant digital trust platform that has conducted over 100 million verifications for 2000+ organizations. OnGrid’s digitally-enabled processes help the HR teams in completing verifications and background checks with the highest authenticity, and efficacy, with the shortest turnaround times, at the most cost-effective rates.