Is Your Background Screening Provider Focused on You or Their Shareholders?

Why the wave of mergers and acquisitions in the background screening industry is a wake-up call for small and medium-sized businesses

The background screening industry is undergoing significant consolidation. In 2024, First Advantage announced a $2.2 billion acquisition of Sterling Check, aiming to create a screening services firm with an annual revenue of around $1.5 billion . Similarly, HireRight was acquired by private equity firms General Atlantic and Stone Point Capital for $1.65 billion.

These are just two examples of a broader trend — consolidation that’s reshaping the industry into a few mega-corporations driven by private-equity concerns, increasing shareholder value, and meeting quarterly earnings forecasts.

But what does that mean for your business?

If you’re a small or mid-sized business, this shift raises concerns about service quality, responsiveness, and alignment with unique organizational needs because as history has taught us, bigger almost never works in your favor.

What’s Really Changing in the Screening Industry?

As larger firms merge and restructure, the focus often shifts away from service and toward scale, profit margins, and investor ROI. Meanwhile, once-independent screening providers are being absorbed into corporate portfolios — and many are outsourcing key functions to reduce costs.

The result? Less control, more complexity, and a higher risk to your business.

The Hidden Risks of Mergers, Acquisitions, and Outsourcing

1. Diminished Customer Service

When your background screening provider becomes part of a global conglomerate, expect growing pains.

  • Service teams may be restructured or downsized

  • You may be routed through call centers instead of speaking to dedicated account reps

  • Response times may slow as layers of bureaucracy increase

2. Loss of Flexibility

With a focus on standardizing systems across platforms, many consolidated firms adopt a “one-size-fits-all” approach to screening — regardless of your industry, role requirements, or risk profile.

3. Outsourcing Creates Data Security Vulnerabilities

To lower costs, many large providers are now outsourcing vital parts of the screening process — including court record research, identity verification, and even customer support — to offshore teams or third-party vendors.

This introduces significant concerns:

  • Sensitive applicant data may be handled outside the U.S.

  • Background report accuracy can suffer due to lack of local expertise

  • Legal liability increases when third parties mishandle private information

⚠️ If your screening provider is outsourcing core services overseas, do you know where your applicants’ PII is going — and how it’s protected?

4. Increased Legal and Compliance Risk

Merged systems and outsourced operations can mean:

  • More errors in reports

  • Slower resolution of disputes or inaccuracies

  • Greater potential for FCRA or EEOC violations

5. A Shift in Priorities

When providers are accountable to shareholders, not customers, service tends to take a backseat to profits. That means cutting corners, deferring investment in support teams, and prioritizing growth over reliability.

The Case for Choosing an Independent Background Screening Provider

For growing businesses who still value personalized service, direct communication, and peace of mind, an independent provider offers key advantages:

Client-Centered Culture

We focus on helping you succeed — not on boosting earnings for investors.

Customized Screening Solutions

We work with you to build background check packages based on the role, risk, and regulatory needs — not just what’s cheapest or fastest to deliver.

No Outsourcing

At EDIFY, all background checks are handled by trained, FCRA-certified professionals based in the U.S. You always know who’s handling your data — and how it’s being protected.

Dedicated Support

You’ll get to know your account manager by name, not by a ticket number. When you need help, we respond quickly — because that’s what partners do.

Background Check Icon

Get Fast and Accurate Background Checks With
EDIFY Screening

Questions to Ask Your Current Provider

  • Are any parts of your screening process outsourced or handled offshore?

  • Will my reports still be verified at the court level — or just pulled from a database?

  • Who can I talk to if I have a problem or dispute with a report?

  • Do you still offer tailored screening packages based on my business’s unique needs?

If you can’t get clear, confident answers — it might be time to consider a change.

Why Personalized Service Still Matters — Even in a Tech-Driven World

In a business environment driven by automation, integrations, and AI-powered platforms, it’s easy to assume that human support is optional. But when it comes to background screening, personalized service isn’t just a nice-to-have — it’s essential.

Today’s HR and compliance teams face more complexity than ever:

  • Integration with multiple applicant tracking and HR systems

  • Navigating evolving FCRA, EEOC, and state-level regulations

  • Managing rising costs and tighter margins

  • Balancing speed with accuracy and legal compliance

And while AI and data automation tools can streamline parts of the process, they cannot replace real human support from professionals who understand your business.

Here’s why personalized service matters more than ever:

  • Customized Screening Solutions: Not every role needs the same check. A warehouse hire isn’t the same as a controller, and your screening partner should know that. We take time to understand your roles, risk tolerance, and compliance needs — then build screening packages that fit.

  • U.S.-Based Live Support: When you have questions — whether it’s about an applicant’s report, a compliance concern, or an integration issue — you shouldn’t be stuck waiting for a bot to escalate your ticket. At EDIFY, real, FCRA-certified professionals are just a phone call or email away.

  • Quick, Confident Hiring Decisions: Personalized service means faster answers, fewer delays, and confident hiring decisions. You don’t just save time — you reduce risk and build trust with candidates.

  • A Partner Who Understands Your Business: We don’t just run reports. We help you hire better, stay compliant, and protect your brand. That means building a relationship where we know your workflows, your people, and your priorities.

⚠️ If your current screening provider treats you like an account number instead of a partner, ask yourself: what is that lack of support really costing you?

Why Work With EDIFY Background Screening?

At EDIFY, we’re proudly independent and client-focused. We believe in building long-term partnerships with the businesses we serve, offering:

  • Customized background check solutions

  • U.S.-based, FCRA-certified staff

  • Transparent pricing with no surprise fees

  • Full legal compliance, court-level accuracy, and adverse action support

We’re not here to impress shareholders. We’re here to protect your people and your business.


📞 336-283-0237
📧 [email protected]
🌐 www.edifyscreening.com

Background Check Icon

Get Fast and Accurate Background Checks With
EDIFY Screening

Disclaimer

The resources provided here are for educational purposes only and do not constitute legal advice. We advise you to consult your own counsel if you have legal questions related to your specific practices and compliance with applicable laws.