The Essential Guide to Data Quality for Background Screening Companies

When a background screening company claims to have high data quality, what does that mean? CRAs and employers expect to receive high-quality data, but how do they know they’re getting it? Can a screener prove their data has high quality? As it turns out, measuring quality is something that’s garnered a lot of attention in the business world over the past few decades. There have been multiple initiatives to measure quality and the cost of quality.

What is Cost of Quality (COQ)?

The abbreviation COQ is bandied about a lot these days, but here’s one widely used definition: the cost of quality consists of expenditures to ensure good quality plus costs incurred as the result of poor quality. Sometimes these costs are separated into four categories. Appraisal and prevention costs are the expenditures a company chooses to make to maintain top quality, and external failure and internal failure are the expenditures they’re forced to make as the result of quality deficiencies.

Failure costs might include the cost of rework, the wasted time of people due to rework, potential lost business and reputation damage. Appraisal and prevention costs include the cost of measuring quality and the cost of putting systems and processes in place to prevent defects.

On the appraisal and prevention side, COQ is an investment. When a screening service invests in quality, benefits flow not only to the company and its staff but also to their clients and all their stakeholders.

The appraisal process measures defects. There is a lot of room for defects to creep into the background screening process. A screening service must understand the order, validate that they’ve received it correctly and transmit it accurately to the research teams and automated processes. They must ensure that the results they discover are accurate and complete. Even though CRAs are not directly subject to the Fair Credit Reporting Act, they should understand the relevant regulations and advise their clients on how they may use the data. Finally, they have to return results to the client in a format that’s readily understood and easy to follow.

A defect is a failure, an inaccuracy or an incompleteness anywhere along this process. A commonly used measure is defects per million opportunities (DPMO). In many industries, companies strive for a DPMO of 3.4 or less. That’s a very small number, representing a defect only 0.00034 percent of the time. However, every defect carries the possibility of rework or of dissatisfying a customer, so it pays to drive that number as close to zero as possible.

What is a Cost of Quality Report?

A COQ Report defines and measures how much is being spent for prevention of defects compared to the cost resulting from failures. For a company implementing any type of quality management program, it points out what’s important in improving quality and where the company stands with respect to what’s important. It’s a report card to let management readily see how well the quality initiatives are doing.

A screening service’s quality report might show, among other factors, what the DPMO is in each type of search the company does and in each step of the processes in those searches. It will also show management how DPMO has changed over time.

The Importance of Quality Background Screening Data

When you request a background search, either as an employer or a CRA, you need to know that the data provided to you is accurate. Decisions on whether to hire and whether to promote are riding on this data. Basic fairness to the person being screened requires that the data be complete and correct.

Data quality is also critical for fairness to the requesting party. They don’t want to be hiring the wrong individual because of something the screening process didn’t catch. No more do they want to pass on a promising hire because of a falsely reported negative factor. A CRA that repeatedly provides questionable results isn’t likely to compete for long.

In the short run, poor data quality can cause rework and waste employees’ time. In the long run, it will damage reputations and cost clients. It’s not out of the question to face financial liability if inaccurate data compromises someone’s job prospects.

What to Look for in a Wholesale Background Screening Data Company

To ensure data quality for background screening companies, it’s vital that they engage a top wholesale background screening company. This should be a partner who can handle the most difficult challenges involving multiple data sources and disparate court records. They must have the experience and resources to provide thorough and accurate data and provide it quickly.

Factors you should look for include:

• Quick turnaround. An employer who has hired a CRA to vet a candidate often needs an answer right away. Sometimes a slow report is no better than no report at all.
• Membership in the Public Record Retriever Network (PPRN) and the Professional Background Screening Association (PBSA). Membership in one or both of these accredited organizations demonstrates that the screener is required to follow stringent guidelines. The PSBA also keeps abreast of all relevant regulations and pushes this information out to its members.
• Familiarity with the Fair Credit Reporting Acts (FCRA). This was enacted to protect the privacy of consumers and to ensure the accuracy of information. A good wholesale screener will understand exactly what any party may and may not do under the act.
• An understanding of fair chance hiring. Many states require this practice, which governs what background information an employer may request, when they may request it and what they may do with it. Many employers choose to practice fair chance hiring even in states where it’s not mandated.
• Solid relationships with courts. This is especially important when seeking local court information, which is not always easy to access and sometimes requires a relationship with local court runners who track down needed records.
• Advanced technology and online tools. The better the tech, the quicker, more accurate and more complete the results from online sources.
• Outstanding customer service. Client support should be available promptly and via the customer’s choice of communication such as email and phone.

At Eagle Eye Screening Solutions, we take seriously the trust that CRAs put in us. Your success is our success, and we strive to help you build your reputation and grow by consistently providing the highest quality information to you and your clients. Our experience and our first-rate technology has enabled us to build a comprehensive, high-quality process that is scalable. We’ve brought great value to other CRAs; contact us to learn how we can do the same for you.