probability of continued employment

probability of continued employment

probability of continued employment

Hello dear readers. In this post on Solsarin we are going to talk about ”probability of continued employment “. Continue reading to find the answer. please write your comment, Thank you for your attention.

What is “probability of continued employment,” and why does it matter?

The question of “probability of continued employment” likely sounds a little strange. It may even seem as if you’re being asked to prematurely announce that the applicant is going to be laid off. But this question is actually concerned with the applicant’s ability to pay a lender.

Mortgage companies and other financial institutions need to know whether an applicant can repay a loan or mortgage. The question of continued employment is getting to the heart of that matter. If there’s a chance the applicant will be laid off in the coming weeks or months, their ability to repay a loan or mortgage will be hindered. Ultimately, the lender wants to ensure the applicant will have a stable income for the foreseeable future.

probability of continued employment
probability of continued employment

How to answer the “probability of continued employment” question

When answering the question of continued employment, anything other than a solid, “yes,” or “very likely,” might alarm the applicant. Remember: The applicant’s job performance isn’t the focus of this question—the verifier is simply asking about whether the applicant will have a stable income months from now.

Because the question of continued employment is so important, it requires a thought-out, accurate response. Keep the following in mind to ensure you answer as accurately as possible:

  • Loop in the employee’s manager when necessary. The manager will have a better idea of the employee’s performance and job stability.
  • Be honest. Even if there’s a chance the employee sees your answer, you need to answer honestly. The last thing you want is to lie and help the applicant get a loan that will bankrupt them down the road. When in doubt, contact the employee’s immediate superior.

  • In the event the employee may be let go in the near future, the question of continued employment becomes dicey at best. Consult with your company’s legal adviser, if possible, before answering. This will reduce the likelihood you’ll run into any legal trouble for stating the applicant may be unemployed shortly.
  • Be prepared to lose the employee if you’re answering negatively. If it gets back to the employee that you answered negatively, there’s a chance they’ll find another employer since they know their time is limited at your company.

So, when answering this question, reframe how you’re approaching it. If the applicant is unlikely to be employed in the near future, you’re helping them by answering honestly. Lying and saying the employee’s job is secure could result in them getting a loan they can’t repay.

probability of continued employment
probability of continued employment

Other common employment verification questions

Employment verification is typically straightforward, but there are occasionally questions that feel out of the blue. The following are some of the more common questions that you might not expect—but keep in mind that many states may have their own specific questions on employment verification forms.

  • If overtime or a bonus is applicable, is its continuance likely? This question may not be a deal-breaker for a loan, as long as the bonuses or overtime aren’t making up the majority of the employee’s income. If you and the employee’s manager can’t confidently answer “yes,” mark it “no.”
  • **Do you anticipate any changes in hours? ** If the employee is salaried and receives no overtime, this is an easy “no.” Otherwise, consult with the department head or manager of the employee to come to an educated answer.
  • Are there any anticipated changes in the applicant’s pay in the coming months? This question likely requires input from the employee’s manager, as they’ll be able to advise you whether the employee is receiving a promotion anytime soon.

Much like the question around continued employment, check with the employee’s supervisor or manager if you have any questions about the above items. Their manager will have a more intimate knowledge of the employee’s performance, likelihood of receiving bonuses, upcoming promotions, and other changes.

probability of continued employment
probability of continued employment

Verifying with confidence

Employment verification is quick and easy when you make the right preparations. Understanding how to answer “probability of continued employment,” and the other difficult questions outlined, puts you ahead of the curve and ensures verification will be far easier from here on out.


When must an employer respond to a verification of employment request, and what information must or can be given?

Verification of employment (VOE) requests on current or former employees can come to an employer from government agencies, mortgage lenders, prospective employers, collection agents and others. They usually seek to verify employment dates, wages, likelihood of continued employment or eligibility for rehire and reason for termination. When must employers respond to such requests, and what information must or should they divulge?

Certainly, only truthful, supportable information should be shared, regardless to whom it is given. States have job reference immunity laws that can cover VOE requests, and if truthful information is given in good faith, the employer will likely be protected from defamation claims. Additionally, a signed consent from the employee should be obtained when possible, with some state immunity laws requiring consent to be protected.

Though not always clear cut, requests from federal and state government agencies and offices often require compliance, whereas most other requests do not. A request from a government agency often cites a regulation requiring the information; if not, employers can generally feel confident about sharing the information asked for, as a good faith effort to comply.

These requests are often to verify wages for court decisions (such as child support) or government programs, to uncover fraudulent use of government services, or even to help an employee prove his or her identity was stolen. These requests are usually very specific in terms of the information needed, and again, any truthful information provided should not subject the employer to legal claims.

probability of continued employment
probability of continued employment

Employers are not required by law to complete VOEs from mortgage lenders, but few employers would choose to disadvantage their employees by ignoring the request. Employers may require written consent from employees before providing information to mortgage lenders and perhaps have a policy that employees must notify HR of upcoming requests. In general, though, employers complete these with truthful responses regarding the current employment situation without guaranteeing continued employment or defaming the employee.

Prospective employers may ask any number of questions, from final wage rates to job performance information. Each employer needs to determine if it will require a signed release for this information, and what type of information it will share. Employers in some states may be restricted from sharing salary history. Certain industries and positions, such as health care and those working with children, may have additional state requirements to share information that may stop a negligent hire.

Collections agencies and anyone else seeking information from employers generally do not need to be responded to, and before sharing information with them, employers may wish to seek legal counsel on a recommended policy on handling these that will best protect the employer.

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