What is the actual cost of pre-employment screening for companies? There are consumer reporting agencies that will charge hundreds of dollars for a check and there are some who will do it for free. How are these background checks different? There are several reasons why the price of background checks may vary, and it always isn’t up to the provider.
What Affects the Cost of a Background Check?
It will come as no surprise that the primary determinant of cost is how in-depth the background check is. People often think that a criminal investigation is a “one push of a button” kind of deal. This is not true. There are a number of databases, courthouses, and court types that call for unique retrieval processes. Some records repositories can be accessed online, others can only be obtained from the courthouse directly. A criminal background check is a mix of several different searches, each with an associated cost. The more searches, the more thorough (and expensive) the criminal screening will be.
Some data sources also charge access fees that providers will usually pass directly on to their clients. Access fees established by courts, states, DMVs, and other data providers could be anywhere from $3-$65 per report. Most of the time, these fees are unavoidable.
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Is a Background Check Worth the Cost?
Perhaps this question is best answered with another question:
What is the value of a good hire?
Background checks provide employers with insights regarding the criminal history, work habits, and overall dependability of their prospective hires. These insights can be used to reduce turnover, improve productivity, and promote workplace safety. Proper background checks can certainly provide more than just peace of mind.
How Much Does It Cost to Run a Criminal Background Check?
Again, the cost of a criminal background check depends on how thorough the search is to be. Here are some standard searches and their associated costs (access fees excluded):
- County criminal records (per county cost): $5 – $20
- Nationwide Criminal Database Searches: $5 – $15
- State criminal records: $9 – $20
- Federal criminal records: $8 – $15
- Sex offender status: $0 – $10
- Records of terrorist activity: $0 to $5
How Much Does It Cost to Run a Motor Vehicle Background Check?
A Motor Vehicle Background Check helps employers better understand an applicant’s driving history. This check is utilized when hiring for positions where driving company vehicles or operating machinery may be necessary. Solutions are available for both DOT and non-DOT-regulated organizations and costs will vary accordingly. The average motor vehicle background check (private license) is $3 – $10. It’s important to note that these background checks will also be subject to access fees.
How Much Does It Cost to Run Verification Background Checks?
There are a number of verification products organizations can include on their employee background checks. Such products include:
- SSN verification checks: $0–$10
- Education verifications: $7 – $15
- Employment verifications: $7 – $15
- Personal reference verifications: $7 – $15
- Professional reference verifications: $7 – $15
- Professional license checks: $7 – $15
How Much Does It Cost to Run a Credit Background Check?
A credit background check also known as a credit check or financial record check is typically utilized when hiring for any position tasked with handling money. The average cost to run a credit background check is $5-$20. Credit checks incur no access fees.
While credit scores are not reported for employment, the results of this check can provide insights as to how responsible the individual is with their finances.
What Affects the Cost of a Background Check?
The following factors can usually affect the cost of a background check:
1. Amount and Type of Information
The amount of information requested can have a major impact on the overall cost of the background check. The more information requested about a particular candidate, the higher the costs are going to be. For instance, a background check including MVR records, drug testing, credit, and criminal history is going to cost much more than a simple criminal background screening that only includes a basic database search.
When speaking about verifications, most of the data ultimately procured by a screening company is not available on any public database and requires independent verification. These products tend to add cost to background checks since they are time-consuming.
2. Access Fees
Access fees refer to the amount charged by the state, county, and data providers to access information. This fee varies depending on the state, jurisdiction, and the type of information requested. Many states offer online database searches. However, many of these online sources come with a fee as well.
Typically, a statewide criminal repository access fee is between $3 and $65. MVR records access fee is between $2 and $25. Some county fees, particularly counties within the New York State Office of Court Administration (NYOCA) charge up to $95 for access.
In short, fees vary and will depend on where a search is taking place and what information is being requested.
3. County Court Record Searches
The cost of background verification can increase depending upon the number of county court record searches required. Some employers elect to supplement county searches with database information. This helps to unearth additional results about a candidate without the need to order high numbers of county searches per report. Any and all hits must then be verified with a county search later on.
Is a Background Check Worth the Cost?
There are several background checks benefits, making them worth the cost to most organizations:
1. Complete Peace of Mind
The costs associated with background checks are a small price to pay when considering the peace of mind they offer. Organizations can make confident hiring decisions by knowing more about their candidate’s background. This allows hiring managers to choose applicants that they know are a good fit for their company.
2. Reduced Attrition
Background checks can help organizations reduce the costs associated with employee attrition. By hiring a candidate that is the right fit, the risk of employee turnover is reduced. The US Department of Labor states that a wrong hire could cost your organization at least 30% of the employee’s annual salary.
3. Reduce Wastage
Whenever a new employee is hired, there are many costs associated with onboarding and training. Valuable resources are allocated to get the employee up to speed with operations. Wrong hires tend to affect everyone in the business or organization in some way or another. They can reduce the morale of coworkers and can impact the efficiency of supervisors and managers. Time spent on rectifying the poor performance of an under-qualified candidate can be costly.
4. Improve Brand Reputation
Background checks act as a measure to help ensure that new hires don’t negatively impact company image. Background checks can be especially important for customer or client-facing positions. The cost of a background check is minimal when compared to the expenses associated with reclaiming brand reputation.
Peopletrail Pre-Employment backgrounds Check Costs?
Peopletrail is less costly when compared to industry standards. Fill out the form above or visit us online to talk to a Peopletrail® screening specialist and get a custom quote for your background check needs.
