How Much Do Background Checks Cost in Tech Hiring?
By
Liz Fujiwara
•
Aug 5, 2025
Background check costs can range from $25 to over $200, depending on the type and depth of the search. These checks are a critical part of the hiring process, helping employers verify candidate information and maintain a safe and compliant workplace. However, the cost of conducting background checks can vary widely based on factors such as the level of detail required, the number of candidates being screened, and compliance with federal or state regulations.
In this article, we’ll explore what drives these background check costs, break down common pricing structures, and share practical tips to help you manage your budget effectively without compromising on accuracy or compliance. Whether you’re a small business or a large organization, understanding these costs can help you make informed decisions about your hiring strategy.
Key Takeaways
Background check pricing varies based on the type of check, the level of detail, and the number of checks performed.
The Fair Credit Reporting Act (FCRA) mandates legal compliance, requiring employers to obtain written consent from applicants before performing background checks.
Investing in comprehensive background checks enhances employee quality, reduces turnover, and minimizes legal risks for organizations.
Key Insights on Background Check Costs
Background checks are essential for verifying applicant information and eliminating dishonest candidates. The costs associated with these checks can vary significantly, especially when more comprehensive information is required. Typically, the cost of a comprehensive background check is less than a day’s pay for the position being filled, making it a valuable investment for ensuring quality hires.
Understanding the factors that influence background check costs can help employers better prepare for the financial aspects of their hiring processes. The typical costs for background checks range from $25 to over $200, with reliable screening packages generally costing between $30 and $100. This investment not only provides higher-quality candidates but also offers organizational protection, highlighting the value of pre-employment background checks.
Factors Affecting Background Check Costs
The cost of background checks can vary significantly based on multiple factors that employers need to consider. Three primary factors influence these costs: the type of background check, the depth of the search, and the volume of checks conducted annually. Each of these factors contributes differently to the overall expense, and understanding them can help organizations manage their hiring budgets more effectively.
Employers should be aware that more comprehensive checks involving multiple verifications can incur higher fees. Additionally, government charges for access to public records can vary significantly by jurisdiction, adding another layer to the cost considerations. These may include fees for verifying Social Security numbers and conducting a Social Security number trace.
Type of Background Check
Different types of background checks are essential in the hiring process and directly influence the overall cost. These include:
Criminal records
Employment verification
Drug tests
Reference checks
Employers may need to conduct a variety of checks to determine if candidates are qualified for their roles. For example, drug tests and reference checks can vary in cost due to the nature of the information required. The type of background check requested is a significant factor in determining the overall expense.
Comprehensive background screening that includes multiple types of checks will naturally be more costly but provides a more thorough assessment of potential employees.
Depth of Search
The depth of the search is another crucial factor affecting background check costs. A broader scope of search, including multiple jurisdictions, can increase costs due to the extensive records reviewed. Certain professions, especially those with strict educational or licensing requirements, tend to incur higher background check expenses.
The comprehensiveness of a background check directly impacts its cost. For example, roles with high regulatory demands or those requiring extensive scrutiny will typically have higher costs due to the need for more detailed information and verification.
Volume of Checks
The number of background checks conducted annually by a company can significantly influence cost variations. Companies that perform a high volume of checks each year often benefit from bulk pricing discounts, which help manage overall expenses and provide access to valuable reporting tools.
Pricing varies based on the annual volume of checks. In most cases, larger organizations conducting background checks regularly will find that higher volumes result in lower costs per check, making it a cost-effective approach.
Common Types of Background Checks and Their Costs
Common types of background checks include criminal records, employment verification, and education verification. Each type of check carries its costs, influenced by the depth and scope of the information required. Basic background checks can start as low as $30, offering limited criminal search capabilities, while more comprehensive checks can exceed $200.
The amount of information required for a background check directly impacts the overall cost. A broader scope and additional details typically increase the price. Let’s take a closer look at the specific costs associated with different types of background checks.
Criminal Records Check
Criminal background checks are essential for assessing the potential risk of hiring a candidate with a criminal history. Costs for these checks typically range from $20 to $50. A federal criminal search generally costs around $10 per check, providing a thorough review of federal records.
National instant criminal database checks usually fall within a price range of $10 to $20, offering a quick but less detailed overview. For more localized searches, a county criminal search costs approximately $25 per check, ensuring a detailed examination of a candidate’s criminal history within specific jurisdictions.
Employment Verification
The cost of verifying a candidate’s previous employment can vary based on factors such as the number of employers being verified and the complexity of the information required. While starting costs may differ, these checks are critical for employers seeking to avoid negligent hiring and ensure accurate employment histories.
Education Verification
Verifying educational qualifications is a crucial step in ensuring an applicant’s credentials are legitimate. The cost for this type of check typically begins at $12.50 per degree, making it an affordable yet essential part of the screening process.
Education verification checks are particularly important for roles that require specific educational backgrounds. While starting costs may be low, the value they provide in confirming an applicant’s credentials cannot be overstated. Ensuring candidates possess the necessary qualifications helps maintain the integrity of the hiring process.
Legal Considerations and Compliance
Legal compliance is crucial for employers conducting background checks to ensure adherence to laws such as the Fair Credit Reporting Act (FCRA). The FCRA requires employers to obtain written consent from applicants before conducting background checks and to provide a clear, separate disclosure when obtaining a consumer report for employment purposes.
Failure to comply with FCRA requirements can result in significant legal consequences, including class-action lawsuits. In industries with high regulatory demands, thorough background checks are essential to meet legal standards and avoid penalties, as noncompliance can lead to serious repercussions. A complete understanding of these requirements is vital.
Partnering with a trustworthy and reliable background check provider helps ensure compliance with these laws, mitigates legal risks, and strengthens overall risk management.
Cost-Effective Strategies for Background Screening
Implementing cost-effective strategies for background screening helps businesses manage their resources more efficiently. Key points include:
Bulk pricing discounts are commonly available for organizations conducting high volumes of checks.
Ordering background checks in bulk can help companies reduce total costs when many checks are performed annually.
These strategies lead to significant cost savings.
Customizing screening packages to specific job roles further helps organizations control background check expenses. Key strategies include:
Bundling various pre-employment screening services.
Integrating background checks with existing HR technology to streamline processes and reduce manual workloads.
Partnering with an experienced background screening provider to alleviate costs and reduce the complexity involved in the screening process.
Choosing the Right Background Check Provider
Choosing the right background check provider can lead to significant savings in both time and costs for employers. While third-party agencies may be more expensive than conducting checks in-house, they often deliver faster and more accurate results.
Employers should seek background check services that offer customizable workflows and compliance tools to streamline the hiring process. Many providers also offer industry-specific screening options tailored to the unique needs of different sectors, making them valuable partners in recruitment.
The Value of Investing in Background Checks
Investing in thorough background checks can significantly enhance the quality of hires and ultimately save time and money by improving employee fit. Employers can reduce turnover costs by selecting candidates who are better suited to the role, minimizing the risk of hiring unqualified or unfit employees. Additionally, proper vetting leads to a more stable workforce.
Conducting comprehensive background checks helps organizations minimize the risk of hiring individuals who may engage in criminal behavior, thereby enhancing workplace safety and protecting the company’s reputation. These checks also help organizations avoid potential legal complications, making them a valuable investment.
Summary
Background checks are an essential part of the hiring process, offering significant value in terms of quality hires, organizational protection, and cost savings. Understanding the factors that influence background check costs, such as the type of check, depth of search, and volume of checks, can help employers manage their hiring budgets more effectively.
Investing in thorough background checks not only improves the quality of hires but also reduces the risk of workplace safety issues and potential legal complications. By partnering with a reliable background check provider and implementing cost-effective strategies, organizations can ensure a smooth and efficient hiring process that safeguards their interests and supports long-term success.
