The Determining Cost Factors for Background Checks

For many businesses, conducting background checks is central to the hiring process. Employers may choose to consider many factors, from the accuracy of an applicant’s resume to job-relevant criminal history. Obtaining such reports can be a vital part of an organization’s risk mitigation efforts. However, these efforts aren’t free—and small businesses need to consider the impact on their budget. What are the main cost factors for background checks?

Developing a thorough screening program does require balancing the cost element. This blog explores some of the main factors that can impact the price of each background check you order. As you develop your screening program, consider these elements to guide your choices.

The Type of Background Check You Order

There are many different background check products. Companies may typically refer to the entire package they order as “the background check,” but the type of report you order can impact the overall cost. Consider that each of these solutions is generally a separate product:

• Criminal history searches
• Education verification
• Employment verification
• Drug tests
• Reference checks
• License verification
• Sex offender registry checks

Because each of these considers different information about an applicant, the process for obtaining results differs, too. That impacts the cost of the screening report. The diverse nature of screening is also why package solutions combining multiple background check products are often more cost-effective.

The Scope and Focus of Your Background Screening

The scope and depth of criminal record searches can be a cost factor in the criminal background check process. What records do you need to search for, and from how many different places? Considering only criminal records from your county of operation could mean missing out on critical information in adjacent counties or another state. Every county records its criminal records separately from one another. Accessing records in one county won’t provide information about crimes an applicant may have committed in a different county. A broader search covers more ground and can help prevent information from falling through the cracks.

At backgroundchecks.com, we offer an instant search of records compiled from jurisdictions across the country. This search of our criminal database comprises over 650 million records and can alert you to potential red flags with a cost-effective focus. Our verified instant searches are also available. With this product, we report precise background results instantly. When finding a record, we verify its details directly with the source. Keep in mind that county courts may also hold more recent records. How and where you search for county criminal records influences criminal record screening costs.

The scope of a background check is a cost factor related to the types of screening products you choose. For example, verification services support confirming the accuracy of information an applicant provides on their resume. The number of verifications ordered impacts cost. An employment verification from one employer may cost less than verifying three or four employers. The open position in question may also impact the scope of screening, which should be proportional to the potential risk level of the position. As the level of responsibility in a job increases, employers may also wish to increase the level of scrutiny to align with the higher risk. An employer’s screening package for an entry-level position may not always go as far as the screening used for a C-suite executive.

Regulatory Requirements for Specific Industries

Sometimes, laws and regulations can impact the types of background checks you conduct. As we discussed in the last section, the scope of a background check can affect how much you ultimately pay for that background check. Several industries have laws and regulations surrounding hiring practices. For example, the transportation industry is generally subject to the Department of Transportation (DOT) regulations.

DOT regulations typically require employers to conduct varying pre- and post-hire screening services, with actual requirements varying depending on the role and the branch of the DOT the role falls under. Other industries may also face requirements at the federal or state level. Healthcare, finance, and education are all industries where you may need to conduct mandatory background checks for specific roles.

Area-Specific Costs and Access Fees

In some cases, obtaining criminal records or other information required to complete a background check incurs additional costs beyond the base price of the background check product. States and counties may charge different fees for accessing their computer record systems. On-site courthouse record searches may require additional fees from the court as well. Background check providers may pass these fees to customers when incurred during the screening process.

Some verification services may also incur additional fees if the relevant data sources require a fee to access information. For example, a licensing body may charge a fee to verify someone’s membership and standing during professional license verification.

How Many Checks You Need to Order

Volume is a vital factor. Do you only need one or two background reports every few months, or must you engage in hiring frequently to scale and grow? While costs increase when you must order more reports, backgoundchecks.com provides volume discounts with bulk background check solutions.

The Background Check Companies You Select

There can be many options when searching for a screening provider. Some providers may better suit large organizations with complex human resources needs. Others deliver service and support at an affordable price that may be designed for small business operators. Carefully selecting the provider you wish to use for screening applicants is essential—it may be one of the most significant factors driving your cost for background checks.

Internal Factors Affecting Background Check Costs

Internal compliance requirements or the organization’s demands for in-depth research for specific roles may also be factors. Some roles may fall under legal regulations requiring specific screening types, such as an abuse registry check or a driving record report. In other cases, a business may determine that a job comes with additional risk and thus requires additional screening services. For example, a job that involves access to large amounts of cash or sensitive employee data may lead a business to establish additional selection criteria.

Over time, your screening needs may also change as your business grows and evolves. A company’s risk management strategy is another element that can influence how much a background check will cost.

Planning for Better Background Check Spending

Background checks may represent an ongoing cost to your business based on the frequency of your hiring. However, despite representing a constant presence in your budget, background checks can offer excellent value to an organization’s risk mitigation efforts. So, how can your organization use them more cost-effectively? Keep these tips in mind:

• Clearly define the scope of the background check based on roles. Know what checks you need to order and which you don’t to avoid spending on unnecessary information.
• Apply your policy consistently.
• Work with a trusted screening provider that delivers value and products tailored to your business needs.

At backgroundchecks.com, we provide comprehensive services designed to help businesses meet their unique screening needs. With competitive pricing and various solutions, creating a cost-effective hiring process to meet your needs can be more accessible. Find out more about these products and how you can save with our package deals today.