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Background checks pay for Checkr, which just raised $100M

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Re: Background checks pay for Checkr, which just raised $100M

#31
post #13

Maybe now they can buy a vowel. I say this only half as a joke. I recently had to use checkr. The first thing they ask you for is your social security number. Typing your social into a box below a misspelled URL isn't a super comforting experience

Do you consider Flickr to be "misspelled"? Would you trust Chick-fil-A to serve you food? Maybe the real reason Toys"R"Us went belly-up is because they couldn't afford vowels either.

Re: Background checks pay for Checkr, which just raised $100M

#33
post #13

Maybe now they can buy a vowel. I say this only half as a joke. I recently had to use checkr. The first thing they ask you for is your social security number. Typing your social into a box below a misspelled URL isn't a super comforting experience

2004 called. They want their missing penultimate "e" back.

Re: Background checks pay for Checkr, which just raised $100M

#34
I find it quite scary that whether you can get employed or not is decided on the whim of some company.

What if your record is wrong, and they won't fix it? And what value do you get of the screening? What can you find, that really would matter to a hiring decision, other than extreme cases?

Re: Background checks pay for Checkr, which just raised $100M

#35

Whatever they do, they can't do worse than HireRight, the company with the most hilariously bad reviews I've ever seen in my life. https://background-check-websites.no1reviews.com/user-review... and https://www.washingtonpost.com/business/economy/hireright-to... and https://www.ftc.gov/news-events/press-releases/2012/08/emplo... They are the fucking worst.

Is this company revenue tied to the amount of denials they do, as in, they charge per check and if the hire is made they stop making money? Halon's razor and all.

Re: Background checks pay for Checkr, which just raised $100M

#36

Checkr is minting money. I doubt they needed this cash infusion, but it could make sense to drive even more growth. Almost all of the on-demand companies (Uber, Lyft, DoorDash, etc.) use the service to screen independent contractors. The kicker is that independent contractors often sign up for many of these services, so Checkr can turn around and sell the same data that they pull for 1 individual to 3+ companies at ~…

"I doubt they needed this cash infusion, but it could make sense to drive even more growth."

I doubt that's the case. If it is, then their management just made a huge mistake. Raising money always has a cost attached. Raise enough money and your exit strategy becomes very constrained -- i.e. fewer companies have the capital to acquire a company with higher valuations. Eventually IPO becomes your only option. Your investors would also expect you to generate a good ROI on the money they gave you. Unless the terms are ridiculously good, you shouldn't raise money willy-nilly.

Checkr doesn't seem like a company that requires insane growth. There's no network effect to exploit. I doubt each additional customer or each additional background record improves their business on an unit by unit basis.

Re: Background checks pay for Checkr, which just raised $100M

#37
post #34

I find it quite scary that whether you can get employed or not is decided on the whim of some company. What if your record is wrong, and they won't fix it? And what value do you get of the screening? What can you find, that really would matter to a hiring decision, other than extreme cases?

What if they dig up dirt on someone with the same or similar name? My mom can't give blood because of some guy with a name that is one letter different than hers. You'd think a different gender would make it easy to fix - but no, she finally gave up.

Re: Background checks pay for Checkr, which just raised $100M

#38
This kind of company deserves to die, and the public record laws for highly personal data also. The obsession with "background checks" is a really huge part of why the US has extremely high recidivism rate.

When people can't find a job even flipping burgers or distributing newspapers, they have no choice other than to go back to the criminal life.

edit: as I got private feedback: it is not my intention to disrespect people flipping burgers or doing other "low level" jobs. My post was meant to illustrate that these two jobs usually do not require education and especially not a "background check", so it is entirely pointless to do these (or to not hire people with a... shady past).

Re: Background checks pay for Checkr, which just raised $100M

#39

Earlier quoted context omitted.

Wow, that's comical and sad at the same time. I have a few friends that would always pass background checks in spite of having some issues in their past. Maybe this is how they lucked out.

It's quite sad that we (collectively) consider this "lucking out" - I don't want to assume your friends situations, but our collective consciousness leaves a permanent mark on their life for past mistakes. And checkr is even more help in the saturated background check industry.

Actually, they did luck out. Usually, those companies report inaccuracies that tend to lose people jobs they completely deserve.
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