The Total Economic Impact^™ of Checkr: Forrester Study Finds 169% ROI

To help organizations better understand the benefits, costs, and risks associated with Checkr deployment, Checkr commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study analyzing the potential return on investment (ROI) enterprises can realize after implementing Checkr.

Forrester conducted interviews with six representatives at four companies, three of which switched to Checkr from another background check vendor. Based on the characteristics of these companies, Forrester designed a composite organization and constructed a financial model to evaluate Checkr’s potential financial impact. The composite organization has the following characteristics:

Here’s a closer look at the Forrester Consulting research on Checkr’s economic impact.

Deploying Checkr delivered a 169% return on investment (ROI) over three years for the composite organization and generated a net present value (NPV) of $2.1 million, with a payback period of less than six months, according to Forrester’s analysis.

Additionally, Forrester’s analysis found that Checkr reduced the end-to-end screening process time by five days, generating faster incremental profit and significantly lowering costs.

In addition to the quantifiable economic outcomes of implementing Checkr, Forrester researchers identified several areas where Checkr had a positive qualitative impact. These included:

Before using Checkr, the interviewees’ organizations utilized background check vendors that lacked modern functionality and required manual intervention and additional administrative time. These limitations extended background check turnaround times and obscured underlying data, hindering the organizations from making timely onboarding decisions. This ultimately led to the loss of qualified candidates and revenue due to delays in time to hire.

Forrester’s analysis showed that Checkr delivered quantifiable benefits, including:

Implementing Checkr reduced the screening process by five days, Forrester found. With a three days faster turnaround time and a two days faster adjudication process, enterprises could fill open positions for revenue-producing roles more quickly. The TEI study reports that over three years, this faster screening process generated $2.7M in incremental profit for the composite organization running 8,000 checks per year.

Slow turnaround times from the interviewees’ prior background check vendors often required pushing back start dates, negatively impacting both internal hiring teams and candidates. Checkr’s more transparent candidate communications made it easier to collect necessary documentation throughout the background check process and keep all parties in the loop.

Interviewees said using Checkr helped them better meet the demands of a scaling business, such as acquiring new customers, adding new locations, or expanding into new territories. By digitizing the background check process, Checkr arms hiring decision-makers with more data more quickly, facilitating growth strategies.

For example, Checkr helped one interviewee expedite opening locations in a new territory by ensuring that the system had the right components to trigger the appropriate paperwork for hiring packages and background checks.

“Having [Checkr] has made it a lot easier to move into new countries,” said another HR leader.

Checkr’s automated adjudication technology enhances efficiency by reducing the need for manual review. As a result, the TEI Study showed up to 75% of adjudication FTEs could be redirected to other value-added work. “With our previous vendor, we had to basically monitor or adjudicate each and every report that came in based on our matrix,” said one TA professional Forrester interviewed. Checkr eliminated most of that manual work.

Teams saw savings across individual background check reviews, improved throughput rates, reduced risk of bias in adjudication, faster adjudication processes, and centralized documentation of adjudication processes.

The TEI study found that Checkr’s centralized platform, ease of use, and customer service reduced the time that users spend building screening packages by 75%. 

The composite organization representative of interviewed customers cut the time needed to build and launch screening packages by ten days (from 14 days to fewer than four). Interviewees attributed the greater efficiencies to improved candidate communication and a better customer service experience when Checkr assistance was required.

As the volume of hiring package creation increases due to expansion into new locations, users can expect additional results, the TEI study said. Before Checkr, “it could take days just for legal to do their local compliance research,” said one interviewee, adding:

With Checkr, HR teams can easily translate current screening packages into centralized and digital packages that can be quickly reviewed by legal teams, customized or updated with ease, and deployed quickly as new roles are added at scale.

Organizations using Checkr found they needed fewer tools and employee hours to manage the background check process. Time spent on managing background check and verification vendors decreased by 50% after adopting Checkr, the TEI study reported.

Checkr also provides a candidate portal and a candidate support team, decreasing the time TA and HR teams spend answering candidate questions. This generated additional time and cost savings.

In today’s business environment, enterprise HR professionals must be able to justify every investment in new technology. Forrester’s analysis shows that a strategic investment in Checkr’s modern platform supports a digital transformation of the background check process and delivers financial and operational results.

Checkr’s advanced data platform optimizes processes and reduces manual work, increasing the productivity of your HR, legal, and operation teams. Our compliance engine and programmatic adjudication features enable enterprises to hire confidently at scale. A flexible API and pre-built integrations with 100+ popular ATS/HRIS systems streamline hiring processes, letting your team easily integrate thorough background checks into one cohesive hiring flow. 

What kind of impact could Checkr have on your organization’s bottom line? Read the complete TEI study to find out or get in touch with our team today.

About the author

As Solutions Marketing Lead, Kristen researches the impact of the Checkr product and ensure our teams are set up to provide the greatest value to our customers. Kristen has built customer-centric marketing programs at enterprise technology companies in cybersecurity and process automation.