Cost Comparison

Although VeraTrack and others provide valuable and efficient services, you should thoroughly understand the expenses associated with integrating and outsourcing your employment verifications in order to make an informed decision.

The following cost-benefit analysis was taken from a regional employer with approximately 5,000 employees. The numbers are assumptions based on employee data extracted from a census in late 2011. The process used by this employer verifies employment history using a traditional method of contacting the applicants’ previous employers via telephone.

Traditional Telephone Method

Assumptions for employer with ~5,000 employees:

Average new hires: 700/year – (13.5/week)
Verification time per new hire 1.5 hours
Verification time per week: 20.25 hours – (1.5 x 13.5)
Average salary: $21.36/hour – (HR associate)
Average cost of 13.5 verifications: $432.54 – ($21.36 x 20.25)
Average total cost of 700 verifications: $22,492.08

Next, the chart below builds upon the previous scenario but assumes that the verification process is done via database search. This yields a faster response but carries a higher cost.

Database Method

Assumptions for verifying employment using this method:

Average new hires: 700/year
Cost per search: $11.00
Cost per applicant: $33.00 – ($11.00 x 3 searches)
Cost per year: $23,100 – ($33.00 x 700 apps)
Additional cost for New Process #1: $607.92

Finally, the following analysis shows the savings when a third-party vendor such as VeraTrack performs the employment verification by directly contacting previous employers and requesting confirmation via an online portal. This type of search is substantially less expensive than each of the processes described in the two previous charts.

VeraTrack

Assumptions for using VeraTrack to verify employment history:

Average new hires: 700/year
Cost per search: N/A
Cost per applicant: $5.00 – (flat rate)
Cost per year: $3,500 – ($5.00 x 700 apps)
SAVINGS through VeraTrack: $18,992.08

Summary

Employment verifications seem like a small matter when the work is stretched out over days and weeks, but comparing aggregate cost figures shows two things. First, the time and the associated expense can add up quickly to become a considerable burden. Second, VeraTrack frees your staff to pursue other tasks and offers significant cost savings, even for companies with moderate hiring needs.