Anyone who follows the background screening industry knows that Continuous Criminal Monitoring is the way forward for consumer reporting agencies (CRAs) looking to break out of the cycle of churn and shrinking margins that plagues the field today.
The demand is there. Employers want to mitigate risk and protect themselves when it comes to the people that work for them. One-time-only pre-hire screenings and sporadic rescreenings can’t account for the fact that 12% of the workforce will be arrested over the next five years.
In the era of gig work and job-hopping, organizations know that a lack of information about their employees’ criminal activity — throughout their tenure of employment — can leave them vulnerable to a significant amount of risk. In the healthcare field, employing someone with a certain criminal background can incur fines of up to $10,000 per day. Financial institutions face penalties of up to $1 million per day.
CRAs that can help their clients reduce risk and promote a safer workplace throughout the entire employee lifecycle will be seen as valuable partners in the coming years.
Continuous Criminal Monitoring is the answer, and the technology exists now. The only question is, can you afford to hold off, or should you invest in providing Continuous Criminal Monitoring immediately?
3 Reasons to Offer Continuous Criminal Monitoring Now
The technology to monitor incarcerations and bookings in real-time only recently became possible. As a result, only the largest CRAs in the industry currently offer Continuous Criminal Monitoring. If they see potential, shouldn’t your background screening firm be among this first wave?
Here are three arguments in favor of offering Continuous Criminal Monitoring as soon as possible:
1. The First-Mover Advantage
So many companies offer traditional background screening that it has become a commodity. As far as most potential customers are concerned, one background screening report is as good as another.
But Continuous Criminal Monitoring is a different thing entirely. It’s so much more than a single, frozen-in-time snapshot, and therefore, it’s worth more to customers. CRAs can charge a premium for Continuous Criminal Monitoring, which will increase your company’s profitability and valuation.
But the highest margins are reserved for the first companies to enter this promising market. As demand increases and the technology becomes more accessible, more CRAs will almost certainly join the Continuous Criminal Monitoring business, which may drive price points down.
2. Reliable Subscription Revenue
Because Continuous Criminal Monitoring is a service rather than a one-time product offering, it allows you to enter into profitable long-term contracts with your customers. Continuous Criminal Monitoring provides a predictable stream of revenue that is somewhat protected from the volatility of economic trends, as it is not tied directly to hiring.
In addition, if you’re already providing long-term Continuous Criminal Monitoring, your customers will be more likely to turn to your company for pre-employment screening.
3. Expanded Customer Relationships
One of the keys to thriving and growing as a CRA is making your business indispensable to the companies you work with. Typically, however, CRAs are not able to spread their reach much farther than the human resources departments for which they provide pre-hire background screening.
Continuous Criminal Monitoring, on the other hand, can give you an “in” to departments such as compliance, legal, and risk management. Any department that touches the employment lifecycle will have an interest in Continuous Criminal Monitoring. A larger footprint within your clients’ organizations will give your company permanency as a trusted and essential partner.
Learn How to Get Started Offering Continuous Criminal Monitoring
The sooner you learn about Continuous Criminal Monitoring, the sooner you can add it to your services as a CRA and start profiting.
Find out exactly how Continuous Criminal Monitoring works, why it will be the most sought-after CRA offering of the 2020s, and how to add it to your company’s services in our free guide, “Close More, Churn Less, and Create Subscription Revenue Through Continuous Criminal Monitoring.”