Today, I'm thinking a lot about Continuous Criminal Monitoring and the value it can create for your Consumer Reporting Agency.
Let’s think big here. If you had an extra billion dollars laying around, what would you do with it? I’m thinking of a beach house in Kauai, a lifetime of coffee from Starbucks, tickets to every Ohio State Buckeyes football game and a private jet to get me around. Oh, and my daughter has been asking for an Apple Watch for a long time now!
Now that I’ve got your attention, let me explain where I believe the background screening industry is heading and why I think Continuous Criminal Monitoring will change the way we do business.
All parties must end at some point.
The reality is that the last six years or so have been an incredible run for the background screening industry. We’ve reached unprecedented lows in unemployment and job churn continues to persist at a blistering pace. We’ve got a 96% adoption rate of companies that perform employment background checks. And together, we’ve generated over $3 billion in annual revenue.
Along with record levels of adoption and activity, we are seeing significant consolidation in the market and price and margin compression like never before. There is also a potential “R” word coming shortly. I don’t want to jinx it by saying the word, but it rhymes with “procession”. While, I’m in no position to predict exactly when that will happen, history shows that markets eventually pull back.
Back to our billion dollars.
All of this said, the industry could use a nice shot in the arm that allows it to expand with healthy margins and an alternate business model.
We estimate that Continuous Criminal Monitoring will generate over a billion dollars a year for the background screening industry over the next couple years and help background screening companies like you increase margins and profitability and create more value for your company through subscription pricing. So, maybe you won’t get the entire slice of that billion dollar pie, but there’s some big-time cheddar in it for you.
What is continuous criminal monitoring?
Continuous Criminal Monitoring is a post-hire technology for employers and CRAs that provides real-time alerts on criminal activity in a workforce population. It alerts you to potential criminal activity in real-time, throughout the duration of employment without the need to filter out noise and constantly monitor reports.
What’s in it for CRAs?
We believe that this new product category will create
- New Revenue Opportunities- Introduce a new product category to your clients that doesn’t cannibalize existing product lines.
- Market Differentiation- Be an industry leader by offering a new solution that expands customer relationships.
- Recurring Revenue- Subscription-based model provides greater business stability to CRAs and increases your total addressable market.
- Accelerate Public Safety Initiatives- Continuous criminal monitoring makes communities safer. Protect employees and customers by keeping bad actors out.
- Enhance Workforce Oversight- Uncover and mitigate financial, legal and reputational risk by learning critical information, quickly.
- Expand the Hiring Pool- Employers can expand their talent pipeline by reducing barriers to employment without increasing workforce risk.
Learn more about Continuous Criminal Monitoring in our new ebook. Click below to download.
Nick Fishman is a guest blogger for SJV Data Solutions. Fishman is the president of Fishman Group Consultants and has over 20 years of experience in the background screening industry serving in various executive capacities.