8 Best Background Check Companies for Small Businesses

How can small businesses hire with confidence and avoid costly mistakes? A background check company’s services can matter the most for small companies, where every new hire can make a big impact.

These providers use effective employment screening methods to help business owners make informed choices and get the perfect candidate for their needs.

In this article, we’ll cover the top background check companies for small businesses. We’ll also look at steps to implement them and ensure compliance with laws.

Types of Background Check Services for Small Businesses

Small businesses often use various types of background screening to evaluate potential employees.

Criminal Record Check

A criminal background check is a standard part of the background check process. These checks review the candidate’s criminal history, which includes criminal convictions such as arrests and periods of incarceration.

This background check helps small business owners identify whether a candidate has a history of violent or risky behavior.

Credit Check

Credit checks conducted by background check companies provide insight into a candidate’s financial management history, including their experience with debt and credit. It helps identify potential financial risks associated with a candidate.

Education Verification

Education verification checks that the degrees, certifications, and training programs listed on a candidate’s resume are valid.

Employment Verification

Employment check focuses on confirming a candidate’s employment history, such as past job titles and performance. They will also look into tenure and their reasons for leaving.

These can indicate if a candidate is fit for the work culture. This type of check helps small businesses by confirming the accuracy of a candidate’s work background.

Identity Verification

An identity check confirms that a candidate’s identity is legitimate. This background check process helps prevent identity fraud and confirms the candidate has a legal right to work. You can use identity verification to check for name variations and previous addresses to verify identity.

Drug Testing

Drug testing is integral for positions that require a high degree of safety, such as transportation or construction jobs. Drug testing helps reduce workplace accidents and creates a safer environment for all employees.

Top 8 Companies for Small Business Background Checks

Several companies specialize in providing background check services suited to the needs of small businesses. Here are some of the top background check providers:

1. Stellar Background Checks

Stellar Background Checks offers quick and reliable background check services. Small and medium-sized businesses benefit from our fast turnaround times, often receiving results in as little as one to three days.

We can also access various registries and conduct different types of checks, including:

• Nationwide criminal checks
• Reference verification
• Employment
• Education verifications
• Professional license verification

Additionally, companies can track and manage their background check through our real-time client portal.

Businesses that use Stellar can choose one of the pricing packages based on the level of screening they need:

• Standard package ($35): Includes SSN trace and criminal background searches
• Bronze package ($54): Adds education and employment verification
• Silver package ($99): Includes a 10-panel drug screening for more thorough checks
• Gold package ($104): Adds driving history and financial background check
• Platinum package ($119): Includes nationwide federal criminal searches for the most complete background check

Pros: Comprehensive services, affordable, fast results, robust customer support

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2. GoodHire

Source: GoodHire.com

GoodHire offers a range of background check services. Their services include criminal record checks, drug testing, and GoodHire offers a range of background check services. Their services include criminal record checks, drug testing, and reference verification. One of GoodHire’s standout features is the ability for candidates to run a background check on themselves.

GoodHire also offers a user-friendly platform for managing various background check packages and screening. This simplicity allows for a quick and hassle-free way to handle hiring.

GoodHire offers three different background check packages:

• Basic+ (starting at $29.99 per check): Includes SSN trace, sex offender registry search, global watchlist records, and national criminal records.
• Essential (starting at $54.99 per check): Adds unlimited county criminal searches to the Basic+ package.
• Professional (starting at $79.99 per check): Includes education and employment checks in addition to the services in the Essential package.

Pros: Simple platform, transparent pricing, good support

Cons: Advanced features only in higher-priced packages

3. HireRight

Source: HireRight.com

HireRight is designed for global hiring, which means its services meet U.S. and international regulations. This feature is especially valuable for hiring workers across multiple countries.

The platform also offers strong compliance tools for specific hiring needs. HireRight uses a separate platform for small and medium businesses.

The pricing options allow businesses to choose the level of detail they need:

• Instant Criminal+ ($36.47): Covers criminal record checks, sex offender registry searches, and SSN validation. Does not include county-level searches.
• Instant Criminal+ Local County ($54.95): Adds one county-level search for a more detailed background check, with results typically delivered within 1-3 days.
• Instant Criminal+ All Counties ($76.95): Provides multiple county-level searches for the most comprehensive results.

Pros: Detailed reports, global reach, strong compliance tools

Cons: Complex setup, higher cost for small businesses

4. Sterling

Source: SterlingCheck.com

Sterling provides a range of background check services, including criminal record checks, identity verification, drug testing, and motor vehicle reports. The company operates globally, making it useful in industries like healthcare, finance, and transportation.

Sterling is also known for its ability to monitor employees after they are hired, helping companies stay updated on any changes in an employee’s background.

Sterling doesn’t disclose its pricing, and you need to contact the company to learn how much you need to pay for their services.

Pros: Fast processing, in-depth reports, strong compliance focus

Cons: Lacks transparent pricing, interface issues reported

5. Accurate

Source: Accurate.com

Accurate allows companies to select the level of detail they want for each check, from basic criminal history to more comprehensive screenings.

The system also makes it easy for HR teams to track the progress of their background checks with real-time metrics. The platform is also known for its compliance controls and ability to support businesses with international needs.

Accurate provides three main packages to accommodate different business needs:

• Basic+ ($32.23 per report): Includes SSN trace, county criminal search, national criminal check, and sex offender registry.
• Standard ($64.53 per report): Provides seven-year criminal history, county verification, and a global watchlist check.
• Premium ($80.68 per report): Adds education and employment checks to the Standard package.

Pros: Easy-to-use, fast turnaround, great customer service

Cons: Fewer advanced features compared to larger competitors

6. Checkr

Source: Checkr

Checkr offers fast, automated screening for businesses needing to process a large number of candidates. It integrates well Checkr offers fast, automated screening for businesses needing to process a large number of candidates. It integrates well with various HR systems, making it easier to manage high-volume screenings. It also offers features to manage mandatory waiting periods.

Another helpful feature is continuous workforce monitoring, which tracks any changes in an employee’s background after they’ve been hired.

Checkr offers three pricing tiers:

• Basic+ (starting from $29.99 per check): Includes SSN trace, sex offender registry search, global watchlist, and national criminal search. It also provides an automatic county criminal search for an extra $15 if required.
• Essential (starting from $54.99 per check): Adds a detailed county criminal search for more comprehensive results.
• Professional (starting from $79.99 per check): Offers all features from the Essential plan, plus education and current employment verification.

You can use Checkr to conduct international background checks, with packages ranging from $32 to $124 per check.

Pros: Fast processing, automated systems, HR system integration, adjudication tools

Cons: Mainly focuses on employment checks, with fewer options for specialized screenings

7. First Advantage

Source: First Advantage

First Advantage offers onboarding solutions like Form I-9 compliance and drug testing, which are useful for businesses handling large-scale hiring.

The company’s screening services are flexible, with pricing starting at $29 per report, depending on the checks required.

First Advantage is scalable, and its screening services can be customized based on the complexity of the checks needed.

Pros: Scalable solutions, comprehensive onboarding services, wide variety of checks

Cons: Costs can increase significantly with more complex screenings

8. Verified Credentials

Source: Verified Credentials

Verified Credentials offers employment and volunteer screening, student requirement management, and bulk checks for large-scale hiring. The platform includes services such as drug testing, I-9 verification via E-Verify, and social media checks.

The system works with applicant tracking systems (ATS) and human resource information systems (HRIS). It allows businesses to manage checks, monitor progress, and produce reports. Candidates submit their information through a dedicated portal, and an API supports advanced integration.

The pricing starts at $20 per check, but they don’t offer transparent pricing models.

Pros: Global capabilities, ATS and HRIS compatibility, user-friendly candidate portal

Cons: No upfront pricing; businesses need to contact for quotes

How to Choose the Right Background Check Company for Your Small Business

Not all providers offer the same services or pricing, and it’s important to choose one that fits your specific needs.

1. Review Costs and Available Packages

Many providers offer background check packages with varying levels of services. Compare each package’s pricing to ensure you get what you need.

2. Look for Quick Turnaround Times

Waiting too long for background check results can delay decisions and lead to losing qualified candidates. It’s important to work with companies that provide timely results, allowing you to fill positions quickly while reviewing the small business background check information thoroughly.

3. Legal Compliance

Work with a provider that follows all relevant laws, including the Fair Credit Reporting Act (FCRA). Providers should also follow local and state laws when conducting background checks and offer transparency in their procedures. This includes requirements similar to those from the Office of Foreign Assets Control (OFAC).

4. Customization Options and Screening Services

Some small businesses may need a simple criminal history check, while others might need more in-depth services, like employment and education verifications or driving record checks. Choose a company that allows you to pick services that meet your hiring needs.

5. Fast Results and Responsive Customer Support

A provider that delivers fast results with reliable customer service makes the process more efficient. If any questions or issues arise, strong support helps resolve them quickly.

Steps to Implement Background Checks in Your Hiring Process

Undergoing a background check as part of your screening services likewise requires steps. Here are some of the things you may want to take note of:

Develop a Background Check Policy

Establish clear guidelines on what checks will be conducted and how the information will be used. A well-defined policy maintains consistency and fairness in the job process. It will also help you avoid potential legal issues.

Inform Candidates

Inform candidates about the background check process and obtain their consent. All candidates must sign consent forms before conducting any checks.

Conduct the Check

Coordinate with the add-ons chosen background check provider to conduct the checks. Collaborate closely with the provider to confirm all necessary checks are completed.

Make Informed Hiring Decisions

Use the information obtained from the background checks to make informed decisions. Analyze the search results in the context of the position’s role and responsibilities.

Legal Considerations for Small Business Background Checks

Depending on local laws in your state, there may be a variety of hiring laws involved. Here are some of the common laws to consider in conducting background checks for small businesses:

Fair Credit Reporting Act (FCRA)

The FCRA governs how background checks are conducted and used. This includes providing candidates with a copy of their rights and obtaining written consent before conducting a background screening or check.

EEOC Guidelines

The Equal Employment Opportunity Commission (EEOC) guidelines help prevent discrimination in hiring practices. Employers must check that background check processes do not disproportionately exclude certain groups unless the exclusions are job-related and consistent with business necessity.

Why Background Checks Are Important for Small Businesses

A background check may seem like an additional cost to a small business, but there are certain advantages to it.

Maintain a Safe Workplace

Reliable background checks help small business owners identify individuals with a history of violent behavior or other red flags. This reduces the risk of incidents that could harm employees and damage the company’s reputation.

Prevent Fraud and Theft

Hiring individuals with a serious criminal history because of employee theft or fraud is a risk for any small business. Background check vendors can reveal past criminal activities related to financial misconduct, helping a small business avoid potential losses.

Legal and Regulatory Compliance

Many industries require a background check to comply with state and federal hiring laws. These regulations help a small business avoid hiring individuals who pose risks to workplace safety and security. Failure to conduct these checks can result in penalties or legal issues.

Make the Winning Hire With Stellar Background Checks

Stellar Background Checks has helped many small businesses make the winning hire with our comprehensive background check services yet affordable packages.

We prioritize speed, accuracy, and compliance when generating background check reports to ensure you make confident hiring decisions. 

Onboard top-tier talent quickly by filling out this form or contacting us at 1-800-301-4140.

FAQs About Background Check Companies for Small Businesses

How do small companies do background checks?

Small companies rely on employment screening services to check a candidate’s details. These services cover employment history, criminal records, and professional licenses. Plus, staying compliant with local hiring laws helps them avoid legal problems.

What background check company do most employers use?

Most employers use trusted employment background check providers like Stellar Background Checks for their services. These companies provide employment history, education, and identity searches while following local hiring laws to protect everyone involved.

What is the most commonly used background check?

Employment background checks are the most commonly used because they reveal a candidate’s work history, such as past performance, years of service, and reasons for leaving. They become a window to an applicant’s overall fit with the work culture. 

The cost of background checks can vary widely based on the provider and the level of detail required. Prices can range from $30 to $100 per check, with discounts available for bulk purchases.

What if a candidate disputes the results?

If a candidate disputes the results, contact the company to address any inaccuracies. It’s important to have a clear process for handling disputes on review results.

Can small businesses conduct their background checks?

Small business owners can conduct their background checks. However, it is often more efficient and reliable to consult a professional. Using a professional service can save time and ensure accuracy.

How often should background checks be updated?

It’s common practice to conduct checks every two to five years, depending on the nature of the job and industry regulations.