Articles & Blog

How Background Check Companies Can Compete Against Checkr

April 18, 2017

Like a rocket, Checkr flew from 0 to $120M in revenue from 2014 to 2016. They have a market valuation of $1B plus. They are now one of the most exciting, dynamic, and largest background check companies in the industry. How did they do this? They first focused on the niche market of the demand economy and the service workforce and they developed great technology to solve a lot of the pains of background checks through automation and a dramatically improved user experience. And they are just getting started. They continue to build their brand, improve technology and secure new rounds of financing to expand their operations. While Checkr made many improvements to the traditional background check process, there are shortcomings in their service delivery and you can have basically the same technology by going with a third party provider like deverus. If you want to compete head-to-head with Checkr, check out our tips below. Today you don’t only have to worry about competing against Checkr for new business, you need to worry about your current customer base not leaving for the new ‘shiny” thing Checkr is offering. Here’s how to do it.

1. Get Your Technology Up to Par

Without a doubt, technology has become extremely important in the industry. It runs almost every facet of a background check business. Checkr invested over $40 million to improve their technology. Most of it went to integrations, APIs, and improving the applicant experience through a mobile app and an applicant portal. They are also focusing on machine learning, AI, and creating new workflow solutions for HR. Do you have those kind of resources to invest in bringing your technology up to speed to compete against them now and in the future? Probably not. This is why it’s crucial to partner with a third party provider who focuses exclusively on the technology so you can focus on the competitive advantages below. Within weeks deverus can get you up to par with numerous ATS integrations, a mobile responsive applicant process, an applicant portal, as well as creative workflow automation and even machine learning and AI. With deverus, technology will no longer be a deficit, it will be a differentiator.

2. The Customer Comes First

If you head over to the BBB page for Checkr, you’ll find many disappointed applicants. Bad information and slow responses from Checkr create real problems for applicants and employees who need accurate, error-free background checks to gain or maintain their employment. Checkr seems slow to respond to applicants with errors in their background reports. If you want to compete with Checkr, it’s imperative that you work hard to provide accurate data and quickly correct any mistakes. One disgruntled applicant said he missed out on a month of work as he waited for Checkr to amend and correct bad information in his report. Both the employee and the employer lose out when bad information isn’t corrected quickly. If you can provide more responsive service to your clients, it’s easy to compete against Checkr and other background check providers.

3. Correct Mistakes Quickly

Another common complaint about Checkr is their responsiveness to complaints and requests for corrections. Mistakes happen, but you can differentiate yourself by providing faster and more effective corrections and amendments to your reports. It’s frustrating for both employers and applicants/employees when bad information makes it way into your background checks and reporting. If your firm can correct errors quickly and accurately, you can beat Checkr with good service and professionalism. Employers need current, accurate information to make good decisions. Checkr opens up a “blind spot” when they fail to provide amended and corrected reporting in a timely fashion. This is a crucial piece of the background check process, and it seems like Checkr hasn’t figured out their complaint resolution process yet.

4. Personalized, Professional Service

Checkr makes their money on volume, and they compete for business with affordability and convenience. If your firm can offer better service and focused customer support, you can outperform Checkr. Employers and applicants want to move past the background check process and get to work. If you provide accurate and effective reporting, you can beat Checkr with better service and better responsiveness. If you can’t compete on price, you can win new contracts with professionalism and a customer-centric approach to background checks. When you put your client’s needs first and provide outstanding service, you can beat Checkr at any price.

Checkr is an exciting new entrant to the background check industry, but they have weaknesses in their service delivery. By getting your technology to par and competing against them when it comes to service, you have a chance to win accounts or more importantly protect your current client base from attrition. If you can provide faster, more accurate, and more effective service, all while delivering the same technology, you can take business away from Checkr and maintain your current customer base.

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