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Free Background Checks, Checkr and The Ultimate Disruption

September 26, 2018
Free Background Checks Free Background Checks

When Checkr soft launched their free background check to applicants branded, Better Future, a few weeks ago, they took a huge shot across the bow to change the foundations of our industry in a big way.

CRAs need to take notice because the implications are broad and deep on so many levels. With its arrival to the industry just a few years ago, Checkr has done an amazing job at disrupting the business of background checks from technology, to process, to integrations and even customer acquisition.

deverus had been thinking about pre credentialing employees for a long time. We envisioned a not too distant future, (hint we are already working on this) where employees preverfied themselves prior to applying for jobs and then having the results updated daily through databases and a validation code in their apple wallet or app. They would present those credentials to HR upon applying for a job or even having it on their digital resume. HR would verify the credentials, and the process would move along smoothly and quickly. We believed the applicant would pay for such a service if it sped up the process while giving them more control and transparency around the information provided and the process in general.

But we got it wrong. When Checkr began offering free background checks they changed the game. They are going to get the process in the hands of as many applicants as possible and tie it to job openings and get referral fees for anyone who applies. They will ultimately also get revenue by making it easy and cost effective for HR to verify those results and move the applicant through the process using their background check services.

Why should CRA’s care? It’s simple. If they get mass appeal, which given their funding, buzz, and marketing expertise, they will, then eventually the plan will be to make the process so simple for HR to verify those results using Checkr background check platform. When this happens, you can see a mass exit of clients to Checkr because they just made the process much better for applicants, faster, easier and ultimately more cost effective for HR.

And remember, Checkr is backed by more than $100M in venture financing from Silicon Valley where market disruption is the rule, not the exception. The background check industry is about to change in a big way, are you ready for it?

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