Employee Background Screening Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

Employee background screening services are more expensive in the U.S. due to factors such as the larger economy, stricter regulatory environment, higher data costs, and higher labor costs. The cost of labor and data is higher in the U.S. due to more availability of data, higher minimum wages, and more expensive benefits. However, the cost of background screening services can also vary depending on the employer's specific needs, such as a background check that includes criminal history and credit checks. This can in turn increase the price. Due to considerations including higher living costs, data prices, labor costs, and more challenging regulatory environments, Canada's employment background screening services are slightly less expensive than those in the U.S.

The price of background screening services, however, can differ based on the requirements of the business, such as a background check that includes both a criminal and a few other background checks such as residential or education, media checks, etc. Prices for background check services in the U.S. can start from USD 150 compared to Canada, where prices can start from USD 100 depending on different requirements. The Department of public safety charges USD 15 for fingerprint-based checks, while the FBI charges USD 13.25, with an additional fee of USD 11 for foster and adoptive parent applicants and volunteers.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy. 

According to our research, background verification specialists at HireRight receive 8% - 10% higher base salary compared to the salary received by background verification specialists working in companies such as Pinkerton and Verity Screening Solutions. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the employee background screening services category over the last two years:

• In April 2022, Checkr acquired GoodHire, a leading provider of self-service background checks for small businesses, as part of its expansion strategy in the rapidly growing small and midsize business segment.

• In February 2022, Checkr, a software firm, announced the acquisition of Canadian company ModoHR Technologies Inc. As a result of the acquisition, Checkr clients would have greater access to Canadian background check information. The acquisition of ModoHR was a strategic move toward global expansion.

• In Jan 2022, Credence, one of the leading providers of international background checks based in the U.K, was acquired by Certn. Credence specialized in providing a faster, automated background check process, which enhanced the candidate’s experience. Through this partnership, Certn was able to expand its geographic reach by serving markets in Europe, the Middle East, and Africa (EMEA).