Mid-Year Supplier Review: Is Your Background Screening Provider Truly Reducing Your Risk?

For many organizations, the middle of the year is the perfect time to evaluate suppliers. Companies routinely review insurance carriers, payroll providers, HR technology, accounting firms, and other critical business partners to ensure they continue to deliver value. One supplier that is often overlooked, however, is their background screening provider.

Many organizations assume that all background screening companies provide the same information, use the same processes, and deliver similar levels of service. In reality, there are many times significant differences in quality, compliance, customer support, search methodology, and overall risk mitigation. A background check should never be viewed as a commodity as it is an important risk management tool that protects your employees, customers, brand, and reputation — a key partner in reducing your overall risk.

As you conduct your mid-year supplier review, here are several questions worth asking about your current background screening provider.

Is compliance truly a priority?

Background screening is governed by a complex and ever-changing set of federal, state, and local regulations. A reliable background screening partner should do far more than simply generate reports. They should educate you on compliance requirements, monitor legislative changes, and help organizations navigate the increasingly complex hiring and other applicant approval landscapes. Working with a background screening provider that places compliance at the center of its business can help reduce legal exposure and improve consistency in your applicant approval practices — be they employees, volunteers, franchisees, members or tenants. One way to know how compliant they are is to look up how much litigation they have been in? Words such as “<name of company> background screening lawsuit” or “class action” will let you know how they truly protect their clients and you!

Are criminal searches as comprehensive as they should be?

Not all criminal searches are conducted the same way. Some providers may limit county searches or rely on less comprehensive search methods that could miss relevant information. An experienced background screening partner should explain exactly what databases and courts are being searched, how searches are performed, and why a thorough approach matters. Small differences in search methodology can significantly impact the quality and completeness of the information you receive. When calling in, you should be provided immediately with what your package includes and the background screening firm should take time to review with you, making sure you have all of the coverage you need for the types of positions you are adjudicating — employees, volunteers, franchisees, members or tenants, etc.

How transparent is your pricing?

A low advertised price does not always translate into a lower overall cost. Some providers add markups to county court fees, third-party fees or other pass-through charges, making invoices difficult to understand. During your internal supplier review, compare your actual cost per background check by your invoices, not just the quoted package price. Transparent pricing allows organizations to budget more accurately and avoid unexpected expenses. You can ask them directly if they are up-charging fees or look up county, state and third-party fees to check yourself in what they are adding. Background screening firms that charge “back end” hidden fees are deceitful, which opens up to wondering what else they are charging you for, or not providing you!

Is customer service still meeting your expectations?

Technology and AI has transformed the background screening industry, but technology alone cannot solve every issue. When a hiring deadline is approaching or a report requires clarification, having access to knowledgeable professionals can make all the difference. Evaluate whether your provider offers proactive communication, experienced account support, and timely updates throughout the background screening process rather than simply delivering reports through an online portal. If you call or email, how fast do they get back to you, especially important to know for those times that are most critical. It is also crucial to know if they are taking your U.S. based candidate screening data and outsourcing overseas. There are privacy and security issues with taking U.S. based information out of the U.S. to be worked on, for the background screening firm to try and save money at the potential cost of your quality, accuracy and privacy.

How stable is your provider?

The background screening industry has experienced significant consolidation through mergers and acquisitions over the past several years. While acquisitions are common, they can sometimes lead to staff turnover, morale issues, service disruptions, and changes in customer support. Additionally, consider whether your provider is privately held or investor owned and driven. Many privately held firms demonstrate the flexibility to prioritize long-term client relationships (building true partnerships), service quality, and compliance versus investor/private equity-driven short-term financial objectives. Many investor-backed organizations have constant changes in leadership/ownership, increased pressure to meet financial targets that lead to operational changes, cost-cutting initiatives, or shifts in strategic priorities that can affect the overall client experience. Understanding a provider’s ownership structure and long-term vision can help you select a partner whose priorities align with your own and are client centric.

Are turnaround times helping or hurting your hiring process?

Hiring delays can result in losing qualified candidates to competitors. While speed should never come at the expense of accuracy, your background screening provider should have efficient processes that deliver reliable information in a timely manner while keeping you informed of report progress. Fast, accurate screening helps organizations make hiring decisions with confidence while maintaining a positive candidate experience. Average turnaround time for most reports should be 2-3 business days. If you find reports taking much longer, question as to why results are coming back to make sure you are getting a confident and true answer from the customer service team.

Is your provider earning your business?

Long-term contracts are not always a sign of a strong partnership. In fact, long-term agreements are usually in place to trap clients into having to stay even if service and quantity are not good after signing. The best supplier relationships are built on consistent performance, responsive service, and trust, not simply contractual obligations. A provider that continually earns confidence through quality service is often a stronger long-term partner than one that relies on restrictive agreements.

A Mid-Year Checklist

As you review your current background screening program, ask yourself:

Has our provider helped us stay compliant with changing regulations?
Do we understand exactly how our criminal searches are performed?
Are our invoices transparent and easy to understand?
Are we receiving proactive communication and knowledgeable support?
Is our provider stable and experienced?
Are they keeping our US based candidate date in the US?
Are turnaround times helping us secure top talent and approve applicants?
Does our provider act as a strategic advisor, or simply process transactions?

The answers to these questions can reveal whether your current background screening program is truly reducing organizational risk or merely checking a box in the hiring and/or applicant approval process.

Background screening is one of the first opportunities to protect your organization from costly hiring or applicant approval mistakes, regulatory issues, and reputational damage. Conducting a thoughtful mid-year review of your screening provider may uncover opportunities to improve compliance, enhance efficiency, reduce costs, and strengthen your overall applicant approval program — whether for employees, volunteers, franchisees, members, tenants, etc.. After all, when it comes to protecting your organization, not all background checks and not all background screening partners are created equally. Make sure you work with a reliable background screening company.

For more information about the differences of background screening in an apples to apples comparison, visit our page at Why Choose Reliable Background Screening.

Posted by: Rudy Troisi, L.P.I., Founder, CEO, Reliable Background Screening and Dr. Alan Lasky, SVP Business Development and Partnerships.

This content is for informational purposes only and not legal advice or binding case law. Consult qualified legal counsel for assistance.