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10 Key Benefits of Using Pre-Employment Screening Services

September 27, 2024

Trying to manage the background screening process in-house can be a legal nightmare, time-consuming, and costly. That's why many businesses are now discovering the numerous benefits of using pre-employment screening services through expert third-party providers, streamlining their hiring process and reducing risks.

10 Key Benefits of Using Pre-Employment Screening Services

Hiring the right people is critical for any business, and thorough background checks are essential in today’s competitive and complex job market. Outsourcing this task to specialized third-party providers offers your business several advantages. The benefits of using pre-employment screening services extend far beyond simple background checks, providing a comprehensive approach to building a reliable and high-performing workforce while mitigating potential risks.

What are pre-employment screening services?

Pre-employment screening services are a crucial component of the talent acquisition process. These services involve a comprehensive verification of candidate information and background checks. They go beyond simply confirming qualifications to assess an applicant’s overall suitability for a specific role within your organization.

The scope of these services typically includes:

  • Employment history verification
  • Educational background checks
  • Criminal record searches
  • Professional license validation
  • Credit history reviews (where legally permissible)
  • Drug screening
  • Reference checks

By leveraging these services, organizations can make data-driven decisions during the hiring process, mitigating potential risks and ensuring a better fit between candidates and positions.

Pre-employment screening companies
Pre-employment screening companies

Benefits of outsourcing background screening to a third-party provider

Partnering with specialized third-party screening services can transform your hiring process from a transactional activity to a strategic advantage. 

Access to specialized expertise and knowledge

Third-party screening providers offer a wealth of specialized expertise that can significantly enhance your organization’s hiring process. These providers invest heavily in staying current with ever-changing employment laws, industry-specific regulations, and best practices in background screening methodologies.

For example, a reputable provider will have in-depth knowledge of the Fair Credit Reporting Act (FCRA), various “ban-the-box” laws, and industry-specific compliance requirements. This expertise ensures that your screening process not only uncovers relevant information about candidates but also remains legally compliant across different jurisdictions.

Moreover, these providers often employ certified professionals, such as those holding FCRA Basic or Advanced Certification from the Professional Background Screening Association (PBSA). This level of specialization is challenging and costly to maintain in-house, making outsourcing an attractive option for organizations of all sizes.

Faster turnaround time for screening results

In today’s competitive talent market, speed can be a decisive factor in securing top candidates. Third-party providers leverage advanced technologies and streamlined workflows to significantly reduce turnaround times for pre employment screening background check.

These providers often have direct access to various databases and information sources, allowing for quicker data retrieval and verification. Additionally, many offer tiered service levels, enabling you to prioritize certain positions or candidates for expedited screening when necessary.

The impact of faster turnaround times extends beyond just speed:

  • It reduces the risk of losing candidates to competitors during a prolonged screening process.
  • It allows for quicker hiring decisions, potentially reducing overall time-to-hire metrics.
  • It can improve candidate experience by minimizing anxiety and uncertainty during the waiting period.

Reduced risk of legal or regulatory non-compliance

Navigating the complex landscape of employment screening regulations can be challenging for organizations. Expert third-party providers specialize in maintaining compliance with a myriad of laws and regulations, including:

  • Fair Credit Reporting Act (FCRA) requirements
  • Equal Employment Opportunity Commission (EEOC) guidelines
  • State and local “ban-the-box” laws
  • Industry-specific regulations (e.g., healthcare, finance, education)

By partnering with these experts, organizations can significantly lower their risk of non-compliance and associated legal issues. This proactive approach to compliance can protect your organization from potential lawsuits, fines, and reputational damage.

Furthermore, reputable providers often have legal teams that monitor legislative changes, ensuring that their screening processes are continually updated to remain compliant with evolving laws.

Greater cost savings

While it might seem counterintuitive, outsourcing background screening often leads to significant cost savings. Here’s how:

  • Elimination of in-house team costs: You avoid expenses related to hiring, training, and managing an internal screening team.
  • Technology investment savings: Third-party providers invest in sophisticated screening technologies, databases, and integrations, costs you don’t have to bear directly.
  • Economies of scale: Providers can offer competitive pricing due to their high volume of checks across multiple clients.
  • Flexible service packages: Many providers offer tiered or customizable service packages, allowing you to choose the most cost-effective solution for your specific needs.
  • Reduced compliance-related costs: By leveraging the provider’s expertise, you minimize the risk of costly compliance violations.

When evaluating pre employment background check cost, it’s crucial to consider not just the direct expense of each check, but also the hidden costs of maintaining an in-house screening process, including ongoing training, technology updates, and potential legal consultations.

More efficient use of company resources

Outsourcing background screening allows for a more strategic allocation of your organization’s resources. By freeing up internal staff from the time-consuming tasks associated with background checks, you can redirect their efforts towards more value-adding activities.

This reallocation of resources can lead to:

  • Increased focus on core HR strategic initiatives
  • More time for personalized candidate engagement and relationship building
  • Enhanced capacity for data analysis and strategic workforce planning
  • Improved overall productivity and efficiency in the HR department

Moreover, outsourcing eliminates the need for continuous investment in screening-related training and technology upgrades, allowing your organization to channel those resources into other critical areas of the business.

Consistent and standardized screening practices

Third-party providers implement standardized screening practices across all candidates, ensuring consistency and fairness in your hiring process. This standardization offers several key benefits:

  • Reduced bias: Automated, consistent processes minimize the potential for human bias in the screening process.
  • Improved legal defensibility: Standardized practices provide a clear audit trail and rationale for hiring decisions, enhancing your position in case of legal challenges.
  • Enhanced data comparability: Consistent screening methods allow for more meaningful comparison of candidates over time and across different roles.
  • Streamlined workflow: Standardized processes can be more easily integrated into your existing Applicant Tracking System (ATS) or Human Resource Information System (HRIS).

This consistency not only improves the quality and fairness of your hiring decisions but also contributes to a more transparent and equitable recruitment process.

Enhanced Candidate Experience

A professional, efficient, and transparent screening process can significantly improve the candidate experience, which is crucial for attracting and retaining top talent. Third-party providers often offer candidate-friendly features such as:

  • User-friendly online portals for submitting information
  • Clear communication about the screening process and timeline
  • Prompt resolution of any discrepancies or concerns
  • Multi-lingual support for diverse candidate pools

An improved candidate experience can lead to:

  • Higher completion rates for screening processes
  • Positive word-of-mouth among candidate networks
  • Improved employer branding and reputation
  • Increased likelihood of offer acceptance from top candidates

By prioritizing the candidate experience during the screening process, you signal to potential hires that your organization values efficiency, transparency, and respect for their time.

Improved accuracy and quality of screening results

Third-party employment verification service providers invest in advanced tools and rigorous quality control measures to ensure high-quality, accurate results. These may include sophisticated data matching algorithms to reduce false positives, multi-layered verification processes for complex screenings, regular audits and quality checks on screening results, and continuous improvement of screening methodologies based on industry trends and best practices.

The improved accuracy of screening results leads to more informed hiring decisions, reduced risk of negligent hiring claims, increased confidence in the quality of new hires, and better protection of your organization’s assets and reputation. By leveraging these advanced capabilities, you can make hiring decisions based on more reliable and comprehensive information, ultimately contributing to a stronger, more qualified workforce.

Employment verification service providers
Employment verification service providers

Reduced liability for businesses

Many third-party screening providers offer liability insurance that covers errors or omissions in their screening process. This transfer of risk can significantly reduce your organization’s financial exposure related to background screening. The benefits of pre-employment screening reduced liability include protection against potential lawsuits arising from screening errors, mitigation of financial risks associated with negligent hiring claims, enhanced peace of mind for organizational leadership, and potential reduction in overall insurance costs for the organization.

When selecting a provider, it’s important to review their liability coverage and understand how it complements your organization’s existing insurance policies.

Greater scalability and flexibility

Third-party screening services offer scalability and flexibility that can adapt to changing business needs. This agility allows your organization to easily adjust screening volumes during peak hiring periods without straining internal resources, quickly implement new types of checks as required by changing regulations or business needs, seamlessly expand screening services to new locations or divisions as your organization grows, and rapidly respond to changes in the regulatory environment or industry standards.

This scalability ensures that your screening processes can evolve with your organization, supporting growth and adaptation to market changes without requiring significant internal restructuring or investment.

By working with a trusted third-party screening company, businesses can streamline the screening process and unlock the full potential of pre-employment screening. The benefits of using pre-employment screening services are clear: from access to specialized expertise and faster turnaround times to reduced legal risks and cost savings. These advantages contribute to a more efficient, compliant, and effective hiring process. Talentnet offers comprehensive pre-employment screening services tailored to your organization’s unique needs, helping you make informed hiring decisions with confidence and ease.

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