What are the Benefits of Outsourcing Background Checks to a Third-Party Provider?

For any large company operating in the United Kingdom, undertaking the arduous task of performing background checks on their employees is a necessity. With increasingly stringent laws and measures being implemented with the government’s right to work policies.

As a result, it’s estimated that about 80% of companies in the UK carry out background checks. They often outsource some or all of the background checking process before employing candidates to a third-party screening service providers.

Performing background screening checks is clearly advantageous. However in the short term challenges facing companies are the time and costs involved. Small business owners don’t have enough time or sufficient staff numbers to carry out background checks on candidates before hiring.

Even large corporations have relatively small human resources departments. They often have to process thousands of applications for just a few vacancies. On top of all the other aspects of staff management they have to deal with on a daily basis.

Time is Money

Outsourcing background checks to a third-party service provider is the preferred solution. Which on the other hand carries additional costs but ultimately saves a great deal of time. Which is better spent on day-to-day operations for recruiters and vendor managers.

Thus, having a third-party provider carry out your company’s candidates’ checks allows you more time to focus on everyday operations. Also assures you of a more robust, in-depth screening process.

The Human resources department may opt to outsource some or all of the background screening to a third party vendor. Depending on the in-house resources available. As it becomes increasingly easy for individuals and vendors to submit applications online, competition among candidates increases. As does the demand for outsourcing background screening checks on a variety of aspects.

Types of Background Screening Checks

Use a third-party background screening vendor to carry out the following background checks:

  • Criminal records
  • Credit rating
  • Financial history
  • Public safety verification
  • Employment history
  • Right to work

Here at Intelimasters Ltd we’ve seen a 20% growth in the demand for outsourced background checks over the past two years with continued growth predicted, especially with the United Kingdom’s recent exit from the European Union and renewed enforcement of regulations governing immigration policy and the right to work.

The Growing Demand for Screening Compliance


Multinational companies – especially those in highly regulated sectors such as financial services, legal services and security – have to comply with national immigration and labor laws. Some of them as the UK’s right to work legislation under the Immigration, Asylum and Nationality Act.

Hence the steady increase in demand for third-party background check providers in the UK so that corporations can ensure they aren’t employing people illegally. An employer in the UK may be liable for a civil penalty if they employ someone who does not have the right to undertake the work in question. This applies to employers who employ staff under a contract of employment, service or apprenticeship. Whether expressed or implied and whether oral or in writing.

Fines for not performing background checks and not keeping records of those checks can cost an employer several thousand pounds. Neglecting to undertake robust background checks can also result in directors losing their jobs.

Choosing a Third-Party Screening Vendor

When you choose a third-party vendor to help you with your background screening, you must have confidence that they will act in your best interests and perform on a par with in-house departments. 5 things your background screening vendor should:

  1. Have a transparent and comprehensive screening process that fits with your
    company’s needs
  2. Be able to do background checks on: credit; education; employment history;
    social media
  3. Provide international background checks
  4. Have knowledge and expertise in local employment laws
  5. Be up to date with data and privacy laws in key markets such as the UK, EU, US, China and Asia.

***Disclaimer***
Intelimasters is a background screening agency, not a law firm. This article is for informational purposes only. Nothing in it should be considered as legal advice. We encourage you to consult with legal counsel regarding your specific business and/or individual needs.



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