One of the most important considerations that HR leaders face as it relates to background checks is how to optimize their cost and be most cost efficient. This is tricky as it relates to background checks because, where background checks are concerned, you truly get what you pay for.
Many background check providers that offer discounted pricing do so because they are purchasing bulk data in batches. This means data is not always the most current, accurate, or complete. Also, sometimes your service and/or turnaround times can be reflected in your price. Meanwhile, some background check providers build premiums into their pricing for providing fast service.
When you get to the point when your department is regularly running background checks, it is time to look at the power in your volume and ways that you can do things more cost effectively. We thought this topic deserved a brainstorming session with Triton CRO, Rob Stewart, to help you decipher how you can negotiate the best deal for your background checks.
Rob began by clarifying what could help determine whether your business is operating at an enterprise level when it comes to background check volume.
“It is hard to put a number on this. Let’s say you are in a better negotiation position as it relates to pricing when you are doing multiple checks per month and varying types of checks depending on the candidate’s roles within an organization,” said Rob.
Rob clarified that the number of candidates does not always equate to number of checks required.
“This means one candidate could need 4 checks if you are checking employment, credit, references, and their criminal record, for example. That means 4 candidates x 4 checks = 16 checks. This is the approach to take when looking at volume and whether it is time to negotiate for a better price than you are paying now,” Rob explained.
When looking at industries with the highest volume of background checks, Rob pointed to three that stand out.
“The three highest volume industries for background checks are staffing, because they need to check as part of their due diligence and the service they offer, logistics and security,” noted Rob. “The latter has a high volume of background checks simply because they have a high turnover rate.”
Rob also zeroed in on the pitfalls of relying on multiple sources for different types of background checks and what proportion of enterprise level customers actually perform more than one type of background check on candidates.
“Most enterprise level customers are performing multiple checks which varies depending on the role in the company. Variabilities include seniority and functionality or what they are responsible for,” stated Rob. “This is where price comes in because, if your checks are centralized and you are getting different checks from various sources, you are likely spending too much.”
For enterprise level customers that require a high volume of background checks, Triton offers packages by volume and discount.
“We offer packages by volume (when you do over a specified number of checks) and we offer packaged discounts. With Triton, if you are doing 5 checks on 1 person you get a better rate then a-la-carte for example,” verified Rob. “Our sales team is really good at collaborating with you (even if you are an existing customer whose need/volume has increased and want better pricing) to create the most cost-efficient combination of background checks.”
Having helped many businesses perform a high volume of background checks, Rob has some advice to be both cost efficient and cost effective.
“Have a planning meeting with your account executive who can help you through best practices for your industry to ensure you have the right cross-section of checks and pricing based on your volume,” advised Rob.
We hope you found this helpful. Want to evaluate if you could be paying less for your background checks? Reach out to sales today.
