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Pricing and Costs of Employee Background Checks

Chad Brooks
Chad Brooks
Editor
business.com Staff
May 10, 2010

Weighing your cost options for employee background check services

Hiring a background check company or running a check yourself is a good policy to not only protect yourself but ensure you hire the right kind of employee.

Pricing and costs of employee background checks don’t have to be exorbitant. In fact, some human resource professionals recommend that a background check cost about one day’s worth of salary for the position you’re screening.

Background check agencies can perform a number of tests, from criminal record checks and Social Security number verification to employment and education verification. Using software designed for background checks or utilizing inexpensive online resources may also be suitable, depending on your needs.

Check out the following information on background checks:

  1. You may not have a choice when it comes to background checks for employees. Check on federal and state requirements for your particular industry.
  2. Failing to do sufficient background checks can result in negligent hiring lawsuits, with the range of award netting hundreds of thousands of dollars, even millions.
  3. The scope of a pre-employment background screening should factor in the particular job. Obviously, a position of authority will require a more in-depth background check.

Know the Numbers: Get help calculating background check costs. 

Run Employee Background Checks for Free

You wouldn’t want your business to depend on it, but there are free background checks that you can use if you need to. A free check is by no means extensive enough for most normal business pre-screenings, but you can learn some basic information about the applicant and verify some details on their application.

Perform an Online Background Check or Get Appropriate Software

The next step up in cost would be to handle the background checks in-house. You can do this a number of ways including purchasing the necessary background check software or utilizing Internet resources such as databases. The databases you will access are generally fee based but would be cheaper than hiring an outside agency.

Work With Background Check Companies With Pricing Options

If you choose to hire an agency who specializes in background checks, select one that allows you to pay only for the checks you want performed.

  • Whatever option you choose for a background check for employees make sure you’re getting what you pay for. Sign on with a reputable company to get accurate as well as fast results.
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Ekaterina_Minaeva/Shutterstock

Chad Brooks
Chad Brooks
business.com Staff
Chad Brooks is a writer and editor with more than 20 years of media of experience. He has been with Business News Daily and business.com for the past decade, having written and edited content focused specifically on small businesses and entrepreneurship. Chad spearheads coverage of small business communication services, including business phone systems, video conferencing services and conference call solutions. His work has appeared on The Huffington Post, CNBC.com, FoxBusiness.com, Live Science, IT Tech News Daily, Tech News Daily, Security News Daily and Laptop Mag. Chad's first book, How to Start a Home-Based App Development Business, was published in 2014.