How to Vet a Background Check Provider: A Step-by-Step RFP Guide

Introduction

Vetting a background check provider is a critical step for any organization committed to compliance, accuracy, and risk mitigation. With employment-related lawsuits and data privacy regulations on the rise, the stakes have never been higher. Whether you’re in healthcare, finance, education, or retail, choosing the right partner can protect your business from legal pitfalls and reputational damage.

A well-crafted Request for Proposal (RFP) streamlines this selection process. It ensures you get standardized responses, makes apples-to-apples comparisons easier, and helps you identify the provider best aligned with your needs. By breaking down your evaluation into strategic steps, you can approach this process with confidence, ensuring that every key requirement is addressed.

What Should You Consider Before Starting the RFP Process?

Before drafting an RFP, you must clearly define what your organization truly needs from a background check provider. Taking time to assess your priorities upfront will save time and prevent issues later.

Define Your Requirements

• Types of Background Checks: Determine the range of checks you need. For example, criminal history checks may be standard for all hires, while education and professional license verifications are critical for specialized roles. Drug testing and international background checks are often necessary for global operations or safety-sensitive industries. Continuous monitoring might be useful for positions involving ongoing access to sensitive data.
• Industry-Specific Needs: Regulated sectors have unique compliance demands. Healthcare organizations, for instance, must often meet requirements from the Office of Inspector General (OIG) and state licensing boards. Financial institutions may need to adhere to FINRA guidelines, while education providers must align with Department of Education rules.
• Volume Considerations: Your volume affects pricing, support needs, and operational impact. Low-volume users might prioritize ease-of-use, while enterprise clients require scalability and automation options.

Budget Constraints and Scalability

• Budget Planning: Establish your background screening budget upfront, considering not only per-check costs but also long-term implications like onboarding delays or compliance gaps.
• Scalability: Evaluate whether the provider can support your anticipated growth or seasonal hiring surges without compromising service levels. Ask if their platform automatically adjusts capacity during high-volume periods.

Legal and Compliance Requirements

• FCRA (Fair Credit Reporting Act): Ensure the provider’s processes are FCRA-compliant, including proper disclosure, authorization, and adverse action procedures.
• State Laws: Stay informed about variations in state laws—California’s Investigative Consumer Reporting Agencies Act (ICRAA), for example, imposes stricter regulations.
• International Laws: If hiring globally, confirm that the vendor complies with GDPR, the UK Data Protection Act, and other relevant privacy laws. Know where and how candidate data is stored and transferred.

How to Build an Effective RFP for Background Check Providers?

Creating a clear, detailed RFP ensures that all providers submit proposals aligned with your expectations, enabling fair comparison.

Step 1: Define the Scope of Work

Be explicit about your requirements. Mention job roles, jurisdictions, special populations (e.g., volunteers, contractors), and turnaround time benchmarks. Detail integrations needed with platforms like Workday, Greenhouse, or ADP.

Step 2: Request Compliance Credentials

Ask vendors to submit proof of relevant certifications, such as:

• PBSA (Professional Background Screening Association) accreditation
• Documentation of internal compliance training
• Sample adverse action notices and consent forms

Step 3: Ask About Data Security Measures

With increasing cybersecurity threats, your RFP must probe deeply into:

• Data encryption protocols (at rest and in transit)
• Access controls (e.g., multi-factor authentication, role-based access)
• Security audits, penetration testing, and employee training

Step 4: Evaluate Customer Support

Request documentation on:

• Support hours, average response/resolution time
• Escalation processes for unresolved issues
• Candidate support features (e.g., multilingual help, mobile access)

What Criteria Should You Use to Evaluate Proposals?

RFP responses can be lengthy and varied. Establishing scoring criteria aligned to your business priorities helps manage evaluation objectively.

Accuracy and Data Quality

• Favor vendors that prioritize primary source verification (e.g., direct courthouse searches vs. third-party data aggregators).
• Ask about built-in mechanisms to flag inconsistencies, confirm identities, and prevent reporting outdated or sealed records.

Turnaround Time and Transparency

• Compare providers’ performance guarantees for different check types (e.g., national criminal database vs. education verification).
• Assess tools like client dashboards, status alerts, and real-time candidate tracking.

Compliance Track Record

• Look for vendors with a clean record, no recent litigation, and a robust compliance training program.
• Request recent SOC 2 Type II or ISO 27001 certifications and review redacted internal audits.

Client References

• Contact references to ask about onboarding experiences, platform usability, and support quality. Request measurable outcomes (e.g., onboarding speed, candidate satisfaction).

How to Assess Compliance and Security?

A trustworthy provider must have proactive, demonstrable measures to safeguard sensitive candidate data and stay current with evolving regulations.

FCRA and GDPR Compliance

• Verify that the provider has built-in workflows for disclosure, authorization, and adverse action.
• Understand their process for correcting inaccurate information and timelines for dispute resolution.

Security Protocols

• Ask about encryption standards, data center certifications, and internal access monitoring.
• Determine if they use third-party vendors and what security oversight is applied.

Breach Management

• Ensure the vendor has a documented incident response plan.
• Inquire about the most recent breaches in the industry and how they’ve responded to security threats.

Use the FTC’s FCRA guidance to benchmark your vendor’s compliance claims.

What Red Flags Should You Watch For?

Red flags during the vendor evaluation process could indicate poor quality, hidden costs, or legal exposure.

Pricing Ambiguity

• Be cautious of vague contract language like “standard search” without clear definitions.
• Clarify if there are extra charges for aliases, counties, or international records.

Lack of Transparency

• A refusal to explain methodology, provide documentation, or disclose dispute rates should raise concern.
• Avoid providers that push pre-set packages without customization options.

Negative Client Feedback

• Look for recurring issues in reviews, such as delayed results, bad data, or poor candidate experience.
• Check Better Business Bureau ratings and legal complaints in public databases.

How to Compare Costs Without Sacrificing Quality?

Thorough cost comparison includes examining both direct and indirect expenses. Focus on long-term ROI, not just upfront prices.

Understand Cost Structures

• Evaluate all line items: onboarding, integrations, monthly access fees, and report delivery.
• Ensure the provider’s pricing accommodates your future growth without major jumps.

The True Cost of Non-Compliance

Failing a compliance audit or facing litigation can far outweigh any savings from a lower-cost provider.

Negotiation Tips

• Suggest custom bundles with the most relevant checks for your industry.
• Use pilot performance results as leverage to secure better long-term pricing.

How to Finalize Your Decision?

Once you’ve narrowed your list, validate your findings through real-world testing and internal consensus-building.

Run a Pilot Program

• Simulate your hiring workflow with each vendor.
• Evaluate ease of use, report accuracy, and support responsiveness.

Contract Review

• Have legal counsel review terms regarding data ownership, indemnity, and SLA enforcement.
• Ensure contracts include clear deliverables, response times, and penalties for underperformance.

Stakeholder Engagement

• Hold a review meeting with HR, Legal, IT, and Procurement to finalize vendor choice.
• Discuss alignment with overall risk management and DEI hiring policies.

Conclusion

Choosing a background check provider isn’t a one-size-fits-all decision. A structured RFP process gives you the tools to make an informed, confident choice based on your specific needs, budget, and compliance requirements.

By emphasizing compliance, accuracy, and customer support, you can mitigate legal risks and build a robust hiring process. Don’t forget to run a pilot and loop in key stakeholders before signing that contract.

Ready to get started? Contact us for a personalized consultation.