3 Ways to Justify Your Background Check Budget for 2025

Many organizations are in the middle of the 2025 budgeting plans, meaning spending, return on investment, and cutting back on unnecessary spending is top of mind. Organizations often cut back where an immediate return on investment cannot be found, but reputation and safety have hidden costs that shouldn’t be treated the same as line items.

If your organization has a solid background check program, you may not change anything moving into 2025. But if you are planning to change or revisit your approach to background screening, we compiled our top three ways to justify a change in your background screening budget.

1. A bad hire can lead to unplanned costs

According to the Society for Human Resource Management (SHRM), just one bad hire can cost your organization tens of thousands of dollars, not to mention the ripple effects on team morale and company reputation. 40% of SHRM study respondents cited undisclosed criminal convictions as the most common area where discrepancies are found during the screening process. Those could be crucial records for organizations to make important hiring decisions. Background checks are primarily viewed as an extra layer of protection for a good reason, but it’s also important to know that the cost of a bad hire goes beyond physical safety.

For example, an employer can bear the financial burden when a crime is committed on a job site. Recently, a jury awarded damages to be paid by an internet provider for failing to conduct a background check on a service technician who murdered an elderly woman in her home.

In addition to potential financial costs from lawsuits for negligent hiring, best case scenario, “undoing” a bad hire creates time loss and decreased productivity. One of the best ways to help you maintain productivity is to ensure new hires are qualified for the role.

2. Qualified candidates are valuable

Background checks are not just a cost but a safeguard for credibility. They offer peace of mind by ensuring candidates are who they say they are and qualified for the position. Unfortunately, some candidates may stretch the truth to stand out or even lie altogether, putting short-term and long-term return on investment at risk. According to a survey by ResumeLab of over 1,900 U.S.-based workers, approximately 70% reported they had lied on their resumes. Verifying employment history can help uncover embellished history.

Filtering out candidates who don’t meet the qualifications for a role can clear the way for candidates who can do the job proficiently. This validation is non-negotiable for roles with significant responsibility, such as healthcare professionals or those with access to sensitive data. The same survey indicates that up to 85% of candidates with advanced degrees have been dishonest in their resumes and cover letters. For example, a major pharmaceutical store chain was charged with endangering the public by hiring an unlicensed pharmaceutical rep, only to be discovered after filling hundreds of thousands of prescriptions over a decade-long period. In other words, roles that demand a higher level of skill and sensitive handling of data or patient care may demand more scrutiny in the background screening process.

3. Screening can scale with the organization

For the best return on investment, consider expanding your background check program with your organization’s growth, adapting to changes in your workforce and hiring needs over time. Customizable packages allow you to choose screening that aligns with your priorities. For instance, industries like healthcare may prioritize license verifications, while retail may focus on theft prevention.

Whether you’re scaling rapidly, onboarding seasonal workers, or dealing with contract workers, having flexible screening options for various roles ensures you’re covered. Setting up custom screening packages with your screening partner can help you:

• Ensure all checks and verifications are covered for various roles with different relevant requirements

• Remain fair by keeping the screening process consistent across the board

• Save time overall by starting the screening process confidently with minimal steps

A la carte options help you cover your bases for unique hires while only paying for what you need, while background check packages help maintain consistency, compliance, and safety standards for roles you regularly hire for.

Justifying ROI in the new year

Background checks and verifications are a long-term investment that helps protect your organization, enhances workforce credibility, saves money in the long run, increases efficiency, and builds trust with stakeholders. By looking at your background check program as an investment that reduces the risk of financial loss while giving you the flexibility of scalability and qualified talent to increase efficiency, you can make a clear case for ROI moving into 2025.

Not a current customer but interested in scalable solutions for screening in 2025? Contact us to find out more.

Are you a current customer looking to explore new ways to improve your screening strategy? Contact your account manager to see how we can help you make the most of your screening program next year.