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5 Significant KPIs of Background Screening to Monitor Closely

Key Performance Indicators or KPIs are tailored metrics for assessing overall business performance. They dissect complex company policies and processes into quantifiable components, enhancing the precision of performance assessments. 

To optimize insights, create a list of no less than five indicators. The purpose is to monitor target areas, offering a more comprehensive view of your operation. For an element to qualify as a KPI, it must define a measurable goal, connect to a reliable data source, and undergo regular updates to track measurement changes. 

These numbers are instrumental in enhancing performance analysis and driving strategic decision-making in your organization.

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Why Does HR KPIs Matter?

Initiating a pre-employment background verification program is a significant undertaking, whether starting from the ground up or transitioning to a new provider. It demands meticulous planning, collaboration, and sustained effort. 

Unfortunately, many programs run on autopilot once established, only receiving attention when issues emerge.

A more prudent approach involves continuously monitoring your employment background screening program through a standardized set of metrics. Regularly assessing program performance data empowers you to swiftly identify and rectify emerging issues or inefficiencies. 

This proactive approach safeguards the program’s integrity, prevents disruptions in your employment background screening and hiring processes, and mitigates potential liabilities and cost escalations.

What Should You Watch Out For?

Here are a few of the most crucial metrics that you should watch out for. If you manage these numbers well, you can ensure a smooth and efficient background check. 

1. Evaluation Screening Costs

This factor is crucial in comprehending and forecasting the cost per hire. It shows opportunities for cost reduction and process improvement. This metric provides insights into the time required to onboard a candidate. 

With this information, you can decide when to initiate hiring and employment background screening services for recruits. It also highlights the need for thorough screening, especially for candidates in positions of authority or administration, who could pose a risk to the organization if not adequately vetted. 

By optimizing screening costs, you can enhance the efficiency and security of your hiring process.

2. Screening Cost Per Employee

Your working budget should align with your company’s cost reduction and profit maximization goals. Background checking costs should be no exception to this objective. 

Understanding the cost of background checks makes it easier to predict and manage your cost-per-hire. Tracking expenses related to background screens by various factors such as location, role, and department is advisable. It allows you to pinpoint areas where spending can be optimized or reduced.

For instance, a department responsible for delivery and logistics may require motor vehicle and driving license verification. Costs can escalate unnecessarily if it also includes education and criminal record checks. In such cases, refining the screening process can lead to cost savings.

Conversely, a department with a lower verification cost might skip crucial background check areas, potentially exposing the organization to bad hires. 

Both scenarios underscore the importance of analyzing employee background screening process costs to ensure they align with your company’s financial goals and hiring needs.

3. Screening Completion Time

This metric refers to the duration for prospective candidates to submit their background check information and provide consent. 

This timeframe commences when the candidate submits their documents and extends until the background check is completed and the employer and employment screening service provider receive authorization. 

Tracking time-to-complete is valuable for identifying the causes of any delays and using this insight to improve communication with candidates, reduce the time-to-complete, and expedite the hiring process.

Some employers may amalgamate time-to-complete with turnaround time, providing a more comprehensive and objective measure of the duration required for the background screening process from initiation to completion. 

This combined metric offers a clearer picture of how long it usually takes to conduct a background check.

4. Screening Frequency 

The number of employment checks within an organization, both on the total and per-candidate basis, wields a substantial influence on screening costs and time-to-hire. 

Monitoring the count of employment background checks, categorized by type and including information about consents, accurate results, impacts, and disputes, offers valuable insights into potential issues and areas for enhancement. 

It’s crucial to delve into the following aspects:

  • Frequency of checks per user, department, and location
  • Percentage of expired or canceled reviews 
  • Number of clear or hit employment background screens

5. Discrepancy Rate

Employment screening discrepancy rate occurs when candidate information cannot be definitively verified or rejected. Accumulation of such inconsistencies can be a cause for concern within an organization. 

A rising discrepancy rate can impede hiring, mainly when these disparities involve critical elements like education and criminal records.

When unverified data accumulates with each employee background check, it becomes essential to reassess the hiring practices. Identifying the specific components responsible for these disparities is crucial. 

You can conduct more rigorous verification for these components or consider excluding them from the hiring process altogether. 

Assessing your background screening process based on the discrepancy rate provides valuable insights into how effectively your screening system gathers data. 

This information can be leveraged to enhance and fortify your employment verification procedures, ensuring a more reliable and accurate screening process.

Resolve Employment Screening Issues Ahead with ADC

Keeping an eye on crucial numbers in your background check program is essential to make your hiring process work well. It helps you find and fix any problems that might slow your hiring.  

By taking action to solve these issues, you not only make hiring more straightforward, but you also make the workplace safer. It’s imperative to look at these KPIs regularly. It helps improve your hiring and ensures your background checks are as good as possible. 

Doing this means more than just better hires. It also means following the rules and ensuring no significant problems with the people you hire. Working with ADC helps make your pre-employment screening process even better and more dependable.

Book a free consultation today!