Background Companies: 5 Things

By AIRBlog Admin on Friday, July 14, 2017
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Filed Under: HR Reposts
Allied Information Resource, Inc.

Do your research!

5 Things to examine when considering background companies


When examining your background process, and/or background companies, the five things below may help you when exploring cost saving and process review of a current or potential background vendor.

1. ix na on the ackages pa.  Do not use package pricing. Your accounting and contracting people love a one number fits all but background companies are not going to take a bath so package prices from background vendors work for background vendors but not the client.
2. Background companies play with the numbers when it comes to access fees. For example, Los Angeles has a volume based search program. Riverside has a small per search fee. San Bernardino, orange, and San Diego have no fees at the time of this blog post. I could say that I am giving you all those counties for a single access fee, but that is not accurate. In the industry it is bad practice to charge more than the access fee, because it is not an access fee anymore. Access fees are also passed through to the client. So, that extra “access fee” should really be added to the cost they are charging for the search.
3. Things change all the time. Access fees are added by some counties, raised by others, and reduced by others. Need to have a finger on that pulse.
4. Not all searches are the same. There is time when blends of products can save you money on good candidates but may cost a little more additional information acquisition is necessary. But over all, blends save time and money as there are less backgrounds with records than with records. Example, I have three candidates. One has a records and two do not. I want to check all the places they have lived in the last seven years as obtained by a ssn trace. Let say all three have three separate counties to search. 9 counties in all to search. If each county search is 10$ then the cost would be $90. If 7 of the searches are in counties that report to national databases ($5 a search) and the record was found in the national database the cost would be broken down like this. $35 for the 7 national data bases searches, $30 for the three searches (one for the record found in the national database search). That’s $65 or a savings of $25. If you can do this on a regular basis, then you can see the potential savings. Blends are good if you are aware of the industry and can use the data available out there in intelligent ways and still remain within compliance.
5. Why have some else do what you can. Many activities by background companies is a pass through type of information. MVR, Employment Verifications through Talx or other employment information repositories. Many companies will not even talk to you. They refer you to their employment record vendor of choice. You should be leveraging this information for yourselves. You should be charging and even competing with some of these vendors because you have this information the information peddlers want. MVRs are also a great example of pass through information. There are a few companies and I mean a very few that have tapped all 50 states MVR databases. Everyone else goes to them. I would bet that even Large companies may use one of these companies for their MVRs. It just makes good sense. It is very cheap and straight forward.

I think these five areas give you a good idea on why it is important to do your research or find a professional to help you.