Background Check Buying Guide

Step 1: Scope the requirement

Before contacting vendors, document the following in a one-pager. This becomes the input to every conversation and the basis of the RFP.

• Annual hire volume, broken out by role family. Drivers, healthcare clinicians, financial advisers, hospitality staff, knowledge workers all have different check requirements.
• Geographic distribution. US states, international countries. Pass-through court fee variance and international per-check pricing depend on this.
• Check scope per role. Which roles need MVR, drug screening, federal criminal, education verification, professional license verification.
• Regulatory requirements. Healthcare OIG and SAM exclusion, transportation FMCSA Clearinghouse, financial services FINRA, government clearances.
• Continuous monitoring requirements. One-time pre-hire only, or ongoing post-hire re-screening at a scheduled cadence.
• Integration constraints. Specific ATS, HRIS, or onboarding-platform integrations required.
• Timeline to first hire. Self-serve start in days vs enterprise contract negotiation over 8 to 12 weeks.

Step 2: Pick the right tier of vendor

Map your annual hire volume to the segment guide:

• Under 100 hires/year: SMB tiered package. Self-serve, no contract.
• 100 to 1,000 hires/year: mid-market. Tiered package still works; negotiate at the upper end.
• Above 1,000 hires/year: enterprise quote-only. Volume commitments unlock negotiated rates.

Step 3: Build a shortlist of three to five vendors

Mix at least one published-pricing vendor with at least one quote-only enterprise vendor so you have a published-rate benchmark. Suggested starting shortlists by segment:

• SMB: Checkr, GoodHire, Verified First, ShareAble for Hires.
• Mid-market generalist: Checkr, Verified First, Sterling, Accurate Background.
• Enterprise diversified: Sterling / First Advantage, HireRight, Accurate Background, Cisive.
• Healthcare: Cisive (PreCheck), HireRight, First Advantage.
• Transportation: HireRight, Cisive, Sterling.
• Global hiring: Checkr international, Certn, Zinc (UK), HireRight global.

Step 4: Issue the RFP

Use the RFP template for the structured prompt set. Insist on:

• Per-check pricing at your stated annual volume.
• Bundled-package pricing if you intend to buy multiple check types as one bundle.
• Pass-through court fee policy (at cost vs marked up).
• Setup fee, annual minimum commitment, term length options.
• Escalator schedule (capped vs uncapped, basis: CPI, fixed percentage, or vendor-determined).
• Adjudication offering and pricing.
• Continuous monitoring offering and pricing if applicable.
• Implementation timeline and resourcing.
• Reference customers in your industry and geography.

Step 5: Evaluate on total cost, not headline rate

Build a total-cost spreadsheet that applies your actual hire mix to each vendor proposal. Include:

• Base per-check rate by tier.
• Add-on uplift by role (MVR, drug, education verification).
• Pass-through court fees at your geographic mix.
• Adjudication cost (vendor outsourced or internal staff time).
• Setup fee amortised over contract term.
• Continuous monitoring annual cost if applicable.

Compare total annual cost across vendors, not just per-check headline.

Step 6: Negotiate the contract

Key clauses to scrutinise:

• Escalator cap. Default to CPI or 3 percent, whichever is lower.
• Volume flex. Quarterly true-up rather than annual; allows for hiring slowdowns.
• Early termination. 30 to 60 day exit for material breach; no penalty for non-renewal at term end.
• Service level agreement (SLA). Turnaround time for standard checks (typically 1 to 3 business days); credits for SLA misses.
• Data ownership. Confirm you retain ownership of your candidate data and can export at any time.
• Subprocessor list. Confirm which third parties touch your data (court access providers, drug labs, education / employment verification providers).

Step 7: Operational handover

• Compliance training. Recruiter and HR partner training on FCRA disclosure, adverse action workflow, and state-specific requirements.
• Adjudication policy. Document the matrix of records to types of decision: which records disqualify, which require manual review, which are automatically cleared.
• Audit trail. Confirm the vendor maintains an audit trail of every decision and every adverse action notice sent.
• Quarterly business review. Set a recurring QBR with the vendor CSM to review turnaround times, dispute rates, cost variance, and roadmap.

Where to go next

• Open the RFP template.
• Read the implementation cost editorial for the first-year cost shape.
• Use the multi-vendor calculator to model total cost at your volume.