In the intricate world of background investigations, determining the cost of the check isn't a straightforward equation of dollars per search. It's a complex dance influenced by various factors.

So, let's dive in and unravel why some people's background investigation comes with a higher price tag than others.

Location, Location, Location

One of the primary contributors to the varying costs of background checks is the number of places an applicant has lived. Consumer Reporting Agencies (CRAs) need to use Primary Source Verification in their investigations to ensure compliance with the Fair Credit Reporting Act (FCRA).

Most commonly, the Primary Source to verify criminal information is the county court in the jurisdictions an applicant has lived. In some states, the Primary Source is an even lower court, but for this article we’ll keep it to the county.

Each individual county court across the country has its own unique fee for obtaining records. If your applicant has lived in multiple jurisdictions, each jurisdiction searched comes with its own fee. It might seem like overkill to search all counties, but it is ultimately necessary.

There’s no one single point of truth in background checks, so to obtain a complete criminal history, each applicable court needs to be checked, all the way down to the town, village, or city courts.

Some criminal searches are more cost-effective than others, though. New York, New Jersey, North Carolina, and Vermont all have state criminal programs with quality data that we feel comfortable reporting on.

Instead of going county-by-county, employers can search the whole state for usually less than a county search.

We say usually because in New York State, for example, the statewide criminal search through the NYS Office of Court Administration (NYS OCA) has a $98.50 per name fee associated with every inquiry.

To avoid these government fees, New York employers can utilize Cursory Indicator NY™, a proprietary NY state criminal search from CI. With it, employers can obtain New York state criminal history without overpaying.

The lesson here is to be aware of your applicant demographics and factor in potential geographical variations to avoid unpleasant budget surprises.

Intricacies of Multiple Names

Individuals may go by various names due to marriage, legal changes, or simply personal preference.

Searching for information under multiple names requires a more extensive and thorough examination of records.

This not only includes legal name changes, but also aliases and nicknames that might be associated with the individual. 

Criminal inquiries are completed by searching the applicant's name and date of birth in the applicable court system.

In almost the same fate as jurisdictions, additional names searched through a court will result in an additional fee.

It’s important to know if your provider is searching all previous names and aliases, or if they are only looking at the primary name given.

In most cases, a name change is actually harmless, like a marriage. However, if an applicant was married a year ago, and you want to hire them today, wouldn’t you want the information on the person's previous name rather than only searching the person's new married name?

Situations like this are more common than you might expect, so it’s good to start thinking about the quality of the information you want to base your decision on.

Name changes are the single largest reason people with adverse history pass a background investigation. By changing the spelling of their name on an application just slightly, they can throw off the court records into thinking their record is clear.

The NYS OCA for example does not have what we call “Fuzzy Logic.” Fuzzy Logic allows background check providers to pick up on name variations or nicknames from an applicant.

Let’s say you have an applicant named Michael Jones. If you send that name through the NYS OCA, you’ll most likely run into adverse information due to it being a common name, but for the sake of this exercise, let's say it comes back clear.

Well, did you search Mike Jones? What about Mykale Jones? (Yes, that’s a real spelling). How about different nicknames, with different spellings, like Micky or Mickey? The OCA considers those names as separate searches.

If Michael was charged as “Mike” for a crime, using just the NYS OCA or a county court search won’t yield the necessary information. Oh, and if you were to search all name variations through the NYS OCA, just remember it costs $98.50 for each new name.

To combat this, employers can again turn to Cursory Indicator NY™, which does utilize Fuzzy Logic. Every Michael you check will have any and all aliases searched.

In essence, the variations in personal identifiers significantly impact the thoroughness and accuracy of the investigation. The importance of searching through all previous names and aliases cannot be overstated, as it is critical in obtaining a comprehensive view of an individual's history.

Timing is Everything

The scope of your background check plays a pivotal role in determining its cost. A narrower scope will be less expensive, but could potentially leave gaps in the reporting. The challenge is to strike the right balance between gathering relevant information and avoiding unnecessary expenses.

The FCRA states that a seven-year or ten-year history is a compliant look back timeframe. While a three-year difference might seem insignificant, a lot can happen in that time. For compliance reasons, employers should keep their look back period the same throughout all applicants.

Changing the scope for different applicants can result in a discrimination suit, so it’s important to decide what information you want to receive before starting.

The ten-year history is currently the industry standard, but criminal convictions can be abnormal, and cause confusion for HR teams. If an applicant was convicted at any point in their life, that conviction is reportable regardless of the look back period.

At CI, we’ve found and reported convictions that are 30 years old.

Seeing a conviction that old can insight some panic in an HR team, but they do not increase the price of your investigation. Overall, it’s the best practice to use a ten-year history on all applicants.

If your hiring team doesn’t want that extra three years of data, or need to tighten your budget, switching to a seven-year history would allow you to do that while remaining compliant.

Racing Against the Clock

As the saying goes, time is money. The urgency with which you need results can affect the overall cost of the investigation. Expedited services often come with higher fees for some providers, reflecting the prioritized efforts to deliver swift and accurate results.

It’s important to understand that at a certain point in the process, your background screening provider is waiting for the courts to respond. Paying for a rush might put extra attention on the individual investigation internally, but your provider still requires the court in question to respond in a timely fashion.

Of course, some courts are better than others. The places an applicant has lived not only impact the price, but also the amount of time it takes to close the investigation.

Most courts are efficient with their responses, but every once in a while the person responsible for records is out sick for a week, and the investigation is stuck. You may have already paid for the rush, but there isn’t anything your provider can do.

Consider your hiring timeline and urgency when discussing background check costs. While a quick turnaround is beneficial, it's essential to weigh the speed of results against the associated expenses.

Finding the right balance ensures you meet your hiring deadlines without overspending on unnecessary acceleration.

The Path to Peace of Mind

Understanding the factors that influence pricing allows you to navigate the complexities of hiring with confidence. Applicant demographics, search scope, and turnaround time are all integral pieces of the puzzle.

As you embark on the journey of background checks, embrace the nuances, anticipate potential challenges, and engage in transparent conversations with your provider.

By doing so, you not only manage costs effectively, but you also ensure the insights gained provide true value in the decision-making process. Remember, the price of peace of mind is an investment worth making in the pursuit of a reliable workforce.