Ask The Work Buzz! When past companies go out of business

Recently I told you that faithful reader Mark had a two-part question. We answered one half, now here’s the other: What do you do about previous employers who have gone out of business and closed on your resume? All of my past employers with the exception of one have closed and gone out of business. I realize that many companies hire out background checks, but do these jobs still show up?
The easiest way to solve this problem is to have references from each company, even if the people are at new companies or even unemployed.

Companies often outsource background checks to a third party who checks your criminal records and sometimes credit history. They also do the employment verification, too, but they use the references you put down most of the time. Make sure you have someone to list for each of those companies–preferably someone you reported to, but at the very least someone who can verify your dates of employment, job title, and duties.

Based on personal experience, I’ve had a company doing the background check call me if I accidentally put down the wrong number and they couldn’t reach the person. (Don’t panic–they’re not going to hold it against you; just give them the correct number.) My references also told me what they asked, and every time it was just to verify the information I’d given them. The employment verification process if important to verify that you’re honest and suited for the job, but they’re not trying to catch you in a lie. As long as your criminal history and credit history check out, you’re probably in good shape.

Also, you can explain your situation to the hiring manager beforehand so they understand what’s going on. If you’re honest about the situation, there won’t be any confusion or doubts raised about your credibility. You’re probably going to have at least one interview before you get to the point in the process where they call references. When you’re discussing your experience and qualifications for the current job, you can reference the fact that X Company went out of business, unfortunately. Then when it comes to references, you can circle back and say, “Although the company no longer exists, I have some contacts to answer any questions you have.”

And, as Rachel mentioned last week, do not buy fake references.

Have you had a different experience with this topic? If so, let us know how you handled it!