Calculating Return on Investment for Background Screening Software: Maximising Efficiency and Cost Savings

Why do you need to build a business case for purchasing software for background screening? 

If you are still undertaking your pre-employment checks through manual processes and paper-based systems, one of the biggest challenges will be demonstrating the wider value of implementing a new background screening system and selling the benefits of automation internally. 

For anyone looking to build a business case for candidate screening software, you will need to understand the finer details of how it will impact your processes and compliance. However, when trying to get the buy in from internal stakeholders it’s critical to present the key facts in a concise manner to get decision maker sign-off. For any digital transformation evidencing what will change and the positive outcomes, together with the associated costs and resource savings is necessary to support the investment case. 

Delivering a successful screening process and compliance strategy needs careful execution. Dealing with different demands, managing time efficiently, keeping track of checks – the list is endless. It is no surprise then that the majority of organisations know they need to work smarter (not harder), especially with the increased pressure from ever-changing compliance legislation. 

The first step in calculating screening ROI: Review your current processes

If you’re reading this article, then you are probably considering implementing an agile, fit-for-purpose background screening system. You may currently be working with an organised set of spreadsheets as a way to manually track your background checks, in which case you are likely to come up against constant challenges and issues every day. 

Take a look at the areas below to get you thinking about building your business case and evidencing ROI. 

What outcomes are you trying to achieve? 

When implementing a screening platform, it's important to identify the outcomes you wish to achieve and establish how success will be measured moving forwards. Consider the following potential areas for success: 

1. Reduced operational time: Streamlining the screening process can save valuable time by automating manual tasks and minimising administrative efforts.
2. Reduced operational costs: Automation eliminates the need for excessive administrative resources, leading to significant cost savings over time.
3. Enhanced candidate experience: By utilising a user-friendly screening platform, candidates can experience a smooth and efficient process, improving their perception of your organisation.
4. More defined processes: Implementing standardised screening procedures ensures consistency and accuracy in candidate assessments.
5. Less stress on the team: Automation reduces the burden on your team, allowing them to focus on high-value tasks and improving their productivity.
6. Quicker time to hire: Streamlined screening processes accelerate the overall recruitment timeline, ensuring top talent doesn't slip away to competitors.

If you’re looking to add an automated screening software solution to your business’ processes, then it can be difficult to know where to start when reviewing your current processes and what outcomes you would like to achieve. Our expert team are happy to go through this process with you and help to outline how Access Screening can revolutionise your background checks. 

How does your onboarding experience compare with your competitors? 

Evaluate how your current onboarding experience compares to that of your competitors. 

Are other companies in your industry achieving better efficiency in compliance checks and attracting top talent? Therefore, are you missing out? 

Consider the candidate experience during your current screening process and identify areas for improvement. Automating your screening processes can help you stay competitive and enhance your ability to attract and retain the best candidates. 

Where can you make incremental improvements in your compliance processes? 

It’s no secret that businesses are at risk of £20,000 fines for employing somebody who doesn’t have the right to work in the UK. Yet many companies seem happy to take a glance at a passport or RTW document and pass that candidate as compliant. 

Compliance is a critical aspect of screening processes, particularly regarding legal requirements such as verifying the right to work. Manual compliance checks can be time-consuming and prone to errors. By digitising these processes, you can tighten up your compliance checks, mitigate the risk of fines, save time, and enhance the candidate experience. Automated screening platforms offer robust verification mechanisms, ensuring you remain compliant while reducing administrative burdens. 

How much money do you actually spend on manual processes? 

On the face of it, it may look like you are saving money by completing things manually. But all of this admin time adds up, and of course you will be paying the individuals who complete those admin tasks.  

You need to understand how much admin time you are potentially wasting on these processes, and how that translates to a pound amount. 

For example, a business who spend 5 hours per week on conducting and chasing manual employment references are actually spending around 260 hours per annum, equating to £3,375.00 of admin cost. (Based on the UK average HR Admin Salary). 

Automating a process such as referencing can drastically reduce this admin time and cost. Consider the following factors: 

• Admin hours spent annually: Calculate the total number of hours spent on each compliance check.
• Cost of admin time: Factor in the salaries of individuals involved in manual tasks to determine the financial impact.
• Additional admin fees: Take into account any fees paid for external checks, such as DBS checks.
• Total cost of current processes: Sum up the expenses to get an accurate assessment of your manual screening costs.

The second step in calculating screening ROI: Define areas of improvements and the associated ROI

Having already completed step one, the following areas will help to identify the ROI you could be looking at for implementing background screening software: 

Calculating Potential Savings 

To quantify the potential return on investment of implementing screening software, a good place to start is by calculating the current indirect costs of operating a manual process. Not only can this give you a visual representation of what you’re currently spending (this can be quite a shock), but also it may highlight some key areas of inefficiencies, allowing you to make the relevant changes for your business.  

To determine the potential savings from automating your screening processes, consider the following factors: 

1. Time saved: Estimate the amount of time saved by automating compliance checks, referencing, and other screening tasks.
2. Admin cost savings: Calculate the reduction in administrative costs resulting from automating manual processes.
3. Improved efficiency: Assess the overall increase in efficiency and productivity achieved by implementing a screening platform.

Review Candidate Drop-Out Rate 

Ask yourself the following questions: 

• How many candidates drop out during your hiring processes? 
• Could this be down to complex screening processes? 
• What cost to the business does this have? (time wasted on interviews etc.) 

Assess the rate at which candidates drop out during your screening and hiring processes. Complex screening procedures can discourage candidates, leading to lost opportunities and wasted resources. By streamlining and automating the screening process, you can improve candidate engagement and reduce drop-out rates. Consider the time wasted on interviews and other recruitment activities when calculating the cost associated with candidate drop-outs. 

The third (and final!) step in calculating screening ROI: Build your business case 

Once you have gathered all the necessary data and made the calculations, you can compile a compelling business case for automating your screening processes. Present your findings in a clear and concise manner. 

Our ‘5 Steps to Digitising your Candidate Compliance Strategy’ eBook outlines how to embark on delivering a successful digital compliance strategy and screening process. Pre-employment background screening can be simple and easy when best practice is adhered to, giving you scalability and the ability to adapt to change. 

Emphasising the following points to your internal stakeholders will point you in the right direction: 

• Cost savings: Highlight the significant reduction in administrative costs achieved through automation.
• Time savings: Showcase the amount of time saved by streamlining the screening process.
• Enhanced candidate experience: Emphasise the improved candidate experience, leading to a positive perception of your organisation.
• Increased efficiency: Illustrate how automation leads to streamlined processes and improved overall efficiency.
• Competitive advantage: Emphasise the need to stay ahead of competitors by adopting modern screening practices.
• Mitigating risks: Stress the importance of meeting compliance requirements and reducing the risk of fines or legal issues.