Share
THE SITUATION
- An investor client asked Stax to evaluate the market position and growth potential for an employment background screening company. The company conducts a range of background screens for HR departments, including criminal, education/employment, and credit. In addition to assessing macro-level trends in the employment screening industry,
Stax examined company specific customer loyalty and satisfaction, new sales opportunities, customer purchasing criteria, sustainability of the firm’s offshore operations, and the company’s practice of channel player alignment, through partnering with other HR service companies to increase stickiness of overall offerings and solutions.
THE ASSIGNMENT
- We began this work with secondary research to understand general trends in the employment background screening industry and assess market competitors. In addition, we conducted primary phone interviews with select competitors and industry experts,and executed a broad-based web survey among HR managers.
THE FINDING
- At the time the US market for employee background screenings was expected to grow in the low single digits due to an economic rebound in hiring and Stax estimated the specific screening company to benefit from this modest growth.
- The target company performed well on key purchasing criteria, and current customers were satisfied, loyal, and reluctant to switch to another provider.
- In terms of growth, we found strong opportunities to expand sales opportunities into other categories; most customers would consider purchasing additional categories of background checks from the screening company.
Read More
Learn why ESG, SCRM, EHS, and GRC software are converging around strategic risk management and how investors evaluate durable risk platforms.
Expo West 2026 revealed key trends shaping natural and better-for-you CPG. Explore three insights investors should watch, from fiber innovation to clean labels.
"The Consulting Report" is pleased to announce The Top 25 Women Leaders in Consulting for 2026, including our very own Kelsey Chisholm (Partner). Click here to read more.
A recap of Grant Thornton Stax and Raymond James’ healthcare breakfast on PE investment opportunities across the pharma tech ecosystem.
AI is driving a bifurcation between surface-layer productivity tools and core operational platforms within vertical software. Learn how Ai is reshaping vertical SaaS here.
For four straight years, Grant Thornton Stax has earned a spot on the Vault Consulting Top 50 list of the best consulting firms to work for in North America. Read more here.