In-House Screening vs. Outsourcing to a CRA
Some employers try to run background checks themselves to save money. Here's what that actually costs — in time, compliance risk, and missed information.
DIY Approach
- •HR staff manually contacts courthouses
- •Employer calls past employers directly
- •Google searches and social media review
- •No automated database access
- •Limited geographic reach (local courts only)
- •FCRA consent and adverse action done manually
- •No MRO for drug test results
- •Results inconsistent — varies by who searches
Professional Screening
- ✓Automated national criminal database access
- ✓Employment verification through dedicated networks
- ✓FCRA-compliant consent and authorization workflow
- ✓Adverse action letters generated automatically
- ✓MRO review for drug testing
- ✓Consistent, standardized report format
- ✓Nationwide (and international) coverage
- ✓Turnaround in 1–3 business days
True Cost Comparison
| Cost Factor | In-House | Outsourced CRA |
|---|---|---|
| Per-search fee | None (but hidden costs) | $20–$75 depending on package |
| HR staff time per hire | 2–4 hours minimum | 15 minutes to set up, rest automated |
| Courthouse fees | $5–$30 per jurisdiction | Included in CRA fee |
| National database access | Not available | Included |
| FCRA adverse action workflow | Manual — high error risk | Automated |
| Compliance infrastructure | Built from scratch | Provided by CRA |
| Risk of lawsuit | High — no guardrails | Low — CRA assumes FCRA compliance burden |
| Scalability | Linear cost increase with volume | Same cost per search at any volume |
The Compliance Risk
FCRA class-action lawsuits are among the most common employment litigation types in the U.S. Missing a single adverse action step — even by one day — can trigger a lawsuit. CRAs are built to prevent these errors automatically.
The Coverage Gap
A courthouse search in one county misses records in 3,142 other U.S. counties. National criminal databases aggregate records across jurisdictions — something no in-house team can replicate manually.
The Speed Difference
In-house verification of employment and education alone can take a week of phone tag. CRAs access employer verification networks that return results in hours, keeping your hiring process moving.
Frequently Asked Questions
What is the difference between in-house screening and outsourcing?
In-house screening means your HR or recruiting team directly contacts courthouses, employers, and schools to verify candidate information. Outsourcing means you use a Consumer Reporting Agency (CRA) that has automated access to criminal databases, employer verification networks, and other data sources — and delivers results in a standardized, FCRA-compliant format.
Is it cheaper to run background checks in-house?
Rarely. In-house screening appears free on the surface, but it consumes significant HR staff time, requires courthouse fees for direct searches, and misses automated data sources that CRAs access at scale. Most employers find outsourcing to a CRA is faster, more comprehensive, and lower total cost once staff time is accounted for.
What are the FCRA risks of in-house background screening?
When an employer conducts their own background investigation (not through a CRA), most FCRA provisions still apply if the investigation is used for employment decisions. However, the complexities multiply: the employer must still follow adverse action procedures, track consent requirements by state, and ensure they're only using legally permissible information. Mistakes can result in class-action lawsuits. CRAs handle much of this compliance infrastructure automatically.
Can small businesses afford to outsource background screening?
Yes. Most CRAs, including Do It Right Screening, charge per-search with no minimum volume requirements. A small business hiring 5–10 people per year pays only for what it uses, with no setup costs or monthly minimums. The per-search cost is typically $20–$75 depending on the package — far less than the cost of a bad hire or an FCRA lawsuit.
Ready to Outsource Your Screening Program?
No minimums, no long-term contracts. We set up your account within 24–48 hours and handle everything from consent to adverse action.