5 Steps to Switching Background Screening Companies

Partnering with a quality background screening company is critical to the success of any business and recruiting program. After all, the average cost of a bad hiring decision is at least 30 percent of the individual’s first-year expected earnings, not to mention the negative effects that bad hires can have on productivity, morale, retention, and other key business metrics.  

A quality background screening service can help improve hiring outcomes. Still, sometimes companies fail to deliver on their promises, leaving employers to clean up the mess, resulting in a low return on the investment. Other times, growing companies find that their once-reliable background screening provider no longer fits their present-day needs as they move into a new evolution of the business. 

For companies experiencing the above, it’s probably time to look for a new background screening solution—to bring more efficiency, sharper cost-savings, and better hiring outcomes to their recruiting programs. 

Switching to a new technology provider can be daunting since the process is often clunky, costly, and time-consuming—but it doesn’t have to be. Find out how companies can create a seamless transition between their previous background screening company and their new one by following the steps below. 

Step 1: Figure Out What You Need

Before starting the evaluation process, it’s essential to get clear on what you need from a new background screening partner. During this step, you should audit your current background screening process to identify areas for improvement. What’s working? What’s not? 

Do you need faster turnaround times to keep hiring cycles moving? More comprehensive screening options? Better customer service to help you through tricky drug screenings? A more tech-enabled product that plugs into your applicant tracking system and offers mobile-first solutions? More hands-on compliance assistance?  

Create a selection criteria checklist with must-have features and functionality from this audit to make the evaluation period more efficient and effective. Going into your search with a narrow, defined focus will automatically weed out solutions that aren’t right for your business, helping you get the right answer faster. 

Step 2: Determine Budget

Another way to narrow the search? Set your budget early so you’re only evaluating services you can afford. 

Background checks vary in price depending on your service provider and the detail needed in the report. Generally speaking, however, most standard background checks cost between $30 and $50 per employee, with more in-depth checks costing upwards of $100 per employee. 

Every business is unique, meaning that each employer has different needs when screening candidates. For example, healthcare or education employers might need to run professional license verifications, while other organizations do not. 

It’s critical to understand the individual needs of your business before running a check so you don’t pay for information you don’t need. Click here to learn more about the different types of screenings to hone in on exactly what you want from a background check. 

Turnover, headcount planning, industry regulations, and compliance standards influence the background screening budget. Other considerations to consider when creating your background check budget:

• Are you predicting company growth or downsizing?
• Does your business have a hiring and background check policy to predict costs better?
• Are your screening or hiring policies changing in the coming year due to new federal, state, or industry regulations?
• Has your employer evaluated the risk of current screening or hiring policies and/or been taken to court over their hiring practices or non-compliance?
• Will your company hire international employees (typically screened at a higher cost)?

Step 3: Conduct Research and Evaluate Providers

Take your selection criteria and budget and begin evaluating background check solutions. The best place to start is by leveraging your network to see if any of your partners or competitors are using solutions they are happy with to conduct due diligence. Reading case studies on background check company websites can also help you identify companies that serve similar businesses to your own. 

Step 4: Plan the Transition 

The first step to planning a seamless transition is choosing the right time to switch. You might be worried about the downtime and time-consuming hiccups that can come with onboarding new technology and can disrupt hiring cycles. But, being intentional and strategic about the timing of the switch creates the conditions necessary for an easy transition. Consider choosing a time when hiring is traditionally slow for your business so key hiring cycles aren’t disrupted—for many, this will be during the summer months. 

Next, establish timelines and milestones to map out a clear and thorough transition plan,  preventing delays and keeping everyone on the same page. Start by creating a detailed timeline that outlines the transition process from start to finish. Identify key milestones and set realistic deadlines for each phase of the transition. 

This timeline will be informed and structured by the contract’s termination date with your current background check company and the date that the new contract will start with the chosen provider. It will also include critical steps like data transfer and system integration. 

Communicate with all relevant stakeholders, including key HR employees and the new provider, to keep them informed throughout the process. 

Step 5: Provide Training and Support 

On that note, to facilitate a successful launch and reduce the costs associated with the switch, be sure to provide thorough training to all relevant employees about working with the new background screening provider and conducting compliant background checks in line with company policies on the new system. 

Finally, ensure that the provider offers reliable, responsive customer support for any issues arising during or after the transition.