Cost of Pre-Employment Screening in the U.S.

Hand holding pen, punching numbers into a calculator

What is the actual cost of pre-employment screening? 

The answer to this question isn’t as straightforward or convenient as some may hope. The reality is that there are many factors to consider before determining a stable cost, and even after taking these into account, background check prices exhibit a fair amount of variability.

However, we will do our best to simplify background screening costs, providing employers with a clearer understanding of what to expect.

Personal Background Checks

This article is geared mainly towards employers seeking background screening solutions for their prospective employees. However, Peopletrail does offer consumer background check solutions. For a consumer, how much is a background check? You can find our consumer screening options and pricing here.

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What Affects the Cost of a Background Check?

It will come as no surprise that the primary determinant of background check cost is scope. People often think that a criminal investigation is a “one push of a button” kind of deal. This is not true. There are several databases, courthouses, and court types that require specialized retrieval processes. Some records can be accessed online, while others can only be obtained directly from the courthouse. A comprehensive criminal background check draws from multiple sources, each with its associated cost. Generally, the more detail requested, 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 can range from $3 to $95 per search. Most of the time, these fees are unavoidable.

Criminal Background Check Cost

Again, the cost of a criminal background check depends on how in-depth the search is to be and, frankly, the markups of the provider. Here are some standard searches and their associated costs (ballpark only, access fees excluded):

  • County criminal records (per county cost): $5 – $20
  • Nationwide Criminal Database Searches: $5 – $15
  • State criminal (repository) records: $9 – $20
  • Federal criminal records: $6 – $15
  • Sex offender status: $0 – $10
  • Records of terrorist activity: $0 to $5

It’s important to note that county criminal information is the gold standard for pre-employment background checks. Some screening reports will require a single county criminal search, while others will require multiple searches. It all depends on the desired scope, as well as the candidate’s address history.

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 (for a private license) costs $3–$10. 

It’s important to note that these background checks will also incur access fees, which are typically passed on directly in addition to the search cost itself.

How Much Does It Cost to Run Verification Background Checks?

There are several verification products that organizations can include in 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

Third-party fees for verifications can be significant, specifically if The WorkNumber is used to verify employment. Depending on the vendor, WorkNumber fees can exceed $100 per report.

Credit Background Check Cost

A credit background check, also known as a credit check or financial record check, is typically used when hiring for a position that involves managing money. The average cost to run a credit background check ranges from $5 to $20. Credit checks incur no access fees.

While credit scores are not reported for employment, the results of this check can provide insight into how responsible the individual is with their finances.

Additional Background Check Cost Factors

The following factors can usually affect the cost of a background check:

1. Amount and Type of Information

The amount of information requested can significantly impact the overall cost of the background check. The more information requested about a particular candidate, the higher the costs will be. For instance, a comprehensive background check, which may include MVR records, drug testing, credit, and criminal history, will cost significantly more than a simple criminal background screening that only involves a basic database search.

2. Access Fees

As mentioned before, access fees refer to the amount charged by the state, county, or data provider to access information. This fee varies depending on the state, jurisdiction, and type of information requested. Many states offer online database searches. However, many of these online sources also come with a fee.

Typically, a statewide criminal repository access fee ranges from $3 to $65. An 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. These fees are inherent to the industry and will be faced by all screening providers.

In short, fees vary and depend on the location of the search and the type of information requested.

3. County Court Record Searches

The cost of background verification can increase depending on 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 a high number of county searches per report. Any and all hits must then be verified with a county search later on.

Benefit Analysis

There are several background check benefits, making them worth the cost to most organizations:

Is it worth it? Check box with yes/no

1. 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 candidates’ backgrounds. This allows hiring managers to choose applicants who 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 who 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, numerous costs are associated with onboarding and training. Valuable resources are allocated to get the employee up to speed with operations. Wrong hires tend to affect many within the business or organization in some way. 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 underqualified candidate can be costly.

4. Improve Brand Reputation

Background checks act as a measure to help ensure that new hires don’t negatively impact the company’s image. Background checks are especially important for customer- or client-facing positions. The cost of a background check program is minimal compared to the expenses associated with reclaiming a brand’s reputation.

Peopletrail Pre-Employment Screening

Peopletrail is less costly when compared to industry standards. Feel free to visit us online to learn more about our screening solutions and get a custom quote for your background check needs.

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