| 3 min read

Ripple Effects: When Background Check Layoffs Impact Your Hiring Process

The recent wave of layoffs in the background check industry has sent shockwaves through businesses of all sizes. With major background screening players reducing their workforces, companies relying on these services face a cascade of potential issues that could not only disrupt their hiring processes but impact their reputation, regulatory status, and even profitability.

Background-screening firm Checkr recently announced 382 job cuts – a 32% workforce cutback -- sending shockwaves through businesses of all sizes.” - Reuters

This article delves into the key concerns businesses should address and explores alternatives to ensure a smooth and reliable background check process.

The Domino Effect of Layoffs:

Large-scale workforce reductions can have a significant impact on background check service providers. Here's what businesses should be wary of:

  • Slower Turnaround Times: Reduced staff directly translates to increased processing times. With fewer hands on deck, companies might experience delays receiving background check reports, potentially stalling their hiring process.

  • Diminished Customer Support: Mass layoffs often lead to declining customer support resources. Businesses may face longer phone wait times or difficulties in getting answers to their queries regarding specific applicants.

  • Potential for Errors: When staff is stretched thin, the risk of human error increases. Companies might encounter inaccurate background check reports due to rushed investigations or overwhelmed personnel.

  • Operational Chaos: Legacy employees/Institutional Knowledge — “go-to” resources who understand the reason for processes, know how to access documentation, and have experience mitigating and escalating customer issues — keep operations running smoothly and are highly valued by customers. Often, executives lack visibility into how eliminating this institutional knowledge can trigger a domino effect of both internal and external confusion.  

Beyond Delays: The Hidden Costs of Disruption

The consequences of a compromised background check process extend far beyond delayed hiring decisions. Here are some additional risks to consider:

  • Compliance Concerns: Regulations often mandate background checks to ensure safe and secure work environments. Delays or errors in reports could expose companies to legal liability.

  • Negative Candidate Experience: Protracted background checks can frustrate qualified candidates, leading to dropouts and hindering an employer’s ability to attract top talent.

  • Risk to Company Reputation: A hiring decision based on an inaccurate background check could result in workplace misconduct, jeopardizing a company's reputation and employee safety.

Charting a New Course: Mitigating the Impact of Layoffs

While navigating a changing landscape can be challenging, proactive measures can help companies weather the storm and maintain a secure and efficient hiring process. If background screening layoffs are preventing your organization from rapidly filling open positions with qualified employees, consider taking the following steps:

  • Review your Service Level Agreement (SLA): Revisit your existing agreement with your background check provider. Look for specific clauses outlining guaranteed turnaround times and support levels. If the SLA no longer reflects the provider’s capabilities, consider exploring alternative solutions.

  • Investigate Alternatives: Research alternative background check providers with a proven track record of reliability and efficient processing. Look for companies with robust technology infrastructure and dedicated customer support teams.

  • Focus on Technology: Prioritize providers that leverage automation and artificial intelligence to streamline background checks. This reduces processing times and minimizes human error, ensuring faster and more accurate results.

Building a Secure Future

The recent industry layoffs highlight the importance of partnering with a reliable background check provider.  Businesses should prioritize companies with a strong commitment to accuracy, speed, and exceptional customer service. By conducting thorough due diligence and exploring alternative options, companies can ensure a seamless and secure background check process, even in the face of industry disruption.

Beyond the Headlines: Seeking Transparency

Unfortunately, the impact of background check layoffs often goes unnoticed – until it’s too late. Providers may not volunteer information about how layoffs will affect the quality and speed of their operations.

As soon as you learn about layoffs at a background check provider, it’s best to engage in open communication immediately. Ask the following questions: 

  • What quality control processes do you have in place, and how will the layoffs put quality assurance at risk?  

  • What’s being done to address compliance and regulatory changes/updates?

  • What processes will be impacted by the layoffs?

  • Who are your “go-to” resources should issues arise – for your company and candidates?

  • What triggered so many layoffs? Can you provide assurances this won’t happen again?

If your provider’s answers are unsatisfactory or incomplete, it might be time to consider a new partner.

A Final Note: Investing in Peace of Mind

In a competitive marketplace, a seamless and accurate background check system is not a luxury; it's a necessity. Background checks are an essential step in safeguarding your business and your workforce.

By proactively addressing potential disruptions and taking steps to ensure a reliable process, companies can maintain the peace of mind that comes from making informed hiring decisions..

About Chane Solutions: Our Staffing Philosophy

At Chane Solutions, we know our customers rely on us for consistent, accurate, and timely background checks, and we understand that any changes to our team can significantly impact our customers. 

Unlike other providers, Chane has seen impressive month over month growth enabling our size and agility to put you, the customer, first.

If you are experiencing delays with your current provider, consider reaching out to Chane Solutions for a seamless and reliable background check process. With a focus on accuracy, speed, and exceptional customer service, we prioritize your needs and ensure that your hiring decisions are made with confidence. Don't let industry disruptions affect your business - partner with Chane Solutions for peace of mind and a secure future.

take control of your background screening process


Leave a comment