How to Evaluate a Background Check Provider and Avoid Compliance Risk
When it comes to background screening, you probably experience a variety of pressures on a day-to-day basis. Not the least of these is the pressure to receive your applicant background check as quickly as possible. In fact, it’s common for some HR managers to prioritize speed to the point where the quality of a background check is sacrificed, potentially leaving an organization vulnerable to litigation.
Choosing the right background check provider is one of the most important risk-management decisions an HR leader can make. While speed is important, there are other factors that are equally—if not more—important to consider when choosing a screening vendor. Here are a few red flags to watch out for in your search for a new provider:
- Unrealistic turnaround time promises
- Suspiciously low pricing
- Automated pass/fail adjudication
- Lack of data transparency
- Overreliance on brand reputation
Red Flags
“Instant” or “Same-Day” Turnaround Claims
Any company that claims to offer “instant” or “same-day” turnaround times is a major red flag. If a firm is promising unrealistic turnaround times, it likely means they are relying heavily on automated database searches rather than thorough county-level research, which can be a big problem. While some automated searches may return results quickly, they are not always comprehensive or up to date. Two, three, even four days is normal. In reality, turnaround time depends on the county itself and how records are retrieved from the county.
Suspiciously Low Pricing
Watch out for screening vendors with pricing that just seems a little “off”. If it seems too good to be true, it probably is. High-quality data collection requires time, verification, and proper sourcing, which should be reflected in the cost. Although most firms base their price on volume, don’t be fooled by the $9.99 or $19.99 background check package. Low-cost packages may exclude critical searches that provide a more complete picture of an applicant’s history. Don’t be tempted to only run the National Criminal Search and the current county of residence to save money.
PASS/FAIL Screening Options
While it’s considered normal for a screening firm to provide ‘adjudication tools’ in their system, be careful that you’re not using a tool that creates PASS/FAIL options. Every applicant should undergo an individualized assessment before automatically rejecting them because of a criminal record. Automated PASS/FAIL decisions can increase compliance risk and may conflict with fair hiring best practices.
Data Questions that Go Unanswered
If a background check company can’t answer questions about their data, provide a source list, or divulge their county research vendor’s name, do not move forward. Firms have an obligation to be transparent with their data sources so you can ensure high quality background checks. You have every right to be informed about the data that is used by your firm, and a reputable provider should be willing and able to clearly explain their data sources.
The “Big” Guys
The size of the firm does not translate to quality, nor do magazine/PR endorsements or “Top 10 Lists”, which are often purchased, not earned. It’s a big misconception that bigger is better in this industry. In many cases, smaller or specialized firms provide more personalized service, clearer communication, and greater flexibility.
Green Flags
So, now you know what to avoid in a vendor, but how do you identify the best ones? Here are a few things to look for:
- Normal turnaround times. Reputable vendors have turnaround times usually between 2-4 days to ensure thorough screening. They understand that accuracy and compliance take precedence over speed alone.
- Verified reviews from reputable platforms. Places like G2 have verified reviews that give great insight into a company’s reputation and things that real customers value about their background screening provider.
- High-quality background checks with pricing to match. Help protect your firm from costly litigation by choosing a vendor that prioritizes compliance and defensible reporting over cutting corners.
- Seamless ATS integrations. If you use an ATS, look for a vendor that has a seamless integration with your system. Not only will it make switching providers smoother, it can reduce manual errors, save time, and improve the overall candidate experience.
Are You Seeing the Red Flags?
Not sure if your potential vendors have red flags? We can help. Our team offers a free background screening evaluation to help you identify gaps, reduce risk, and choose a provider that aligns with your organization’s compliance and hiring goals. Contact one of our experts for a free evaluation and find a vendor that works best for your organization’s needs.
