In-House vs Third-Party Background Checks: Which Is Right for You in 2025?

Background checks are non-negotiable when hiring for a startup, expanding your workforce, or just adding a layer of security to your hiring process. So, the real question here in 2025 is not whether you need to conduct a background check, but how you should go about it.

Should you handle background checking internally or hire a professional third-party background verification service? The answer to this question depends on your business size, industry, hiring volume, and how much risk you're willing to take up.

In this blog we shall walk you through all the aspects of in house and third-party background checking services, which will help you to figure out which approach makes the most sense for you and your business this year.

Why Background Checks Matter More Than Ever in 2025

Let’s first understand why background checks UK are taking the centre stage in 2025:

• Remote hiring: We are aware that remote hiring has become the new trend across the globe. This means verifying candidates has become trickier, whether in the UK or abroad.
• New and stricter regulations: Every country has its own set of rules and regulations when it comes to hiring a candidate, which keeps changing with time. Today, there are new and stricter regulations around employment fraud, data privacy, and fair hiring practices.
• Tech-savvy candidates: The job applicants are now savvier than ever, and some of them know how to bend the truth. A polished LinkedIn profile or a well-designed CV doesn’t always speak the truth.

These trends may look challenging when hiring new candidates, but a good background screening process saves you from costly bad hires and reputational damage by verifying the identity and criminal history, and checking employment history and social media.

Option 1: In-House Background Checks

Many startups and businesses try the DIY methods when it comes to background checks. The HR managers quickly scan through the candidate’s CV and their LinkedIn profiles, a few Google searches, and maybe a call or two to the references. That sounds easy and simple, right?

Pros of Doing It Yourself (In-house)

• Cost Control: No third-party vendor fees. Just time and internal effort.
• Customised Checks: You can tailor the background check exactly to your company’s needs.
• Complete Oversight: You know exactly how the process works and who’s handling the data.

Cons of In-house background checking

• Time-Consuming: Digging into employment history, calling previous employers, and combing through public records takes a lot of time, especially when hiring at a larger scale.
• Limited Tools: Let’s face it: Google isn’t a background checker. And you may not have access to national databases or tools that specialised background verification services use.
• Legal Risks: Without proper knowledge of employment law, consent requirements, and data privacy regulations, you could easily cross a line, especially in the UK.

Option 2: Hiring a Third-Party Background Verification Service

A third-party background checking service is an expert in employment background checks, that handles everything from start to end. They have access to advanced tools and databases that helps in verifying candidates with accuracy and in lesser time compared to in-house background checking.

Pros of using a third-party background screening service

• Efficiency at Scale: These services are built to perform efficiently, quickly, and accurately. So, there won’t be any problem if you have to screen 50 or 500 candidates a week.
• Access to Better Tools: They have access to official databases, criminal records, ID checks, credit reports, and even international records. Whether you're doing an England background check or hiring abroad, you're covered.
• Compliance Experts: Third-party organsitions stay updated with UK employment laws, data protection regulations (like GDPR), and fair hiring practices. Therefore, you never need to worry about any compliance issues.
• Better Candidate Experience: Professionally managed pre-employment screening background checks often mean smoother, faster onboarding for your candidates.
• Scalability and Consistency: Whether you’re hiring single or a larger pool of candidates, you get the same structured process and standardised reports every time.

Potential Drawbacks

• Costs Can Add Up: Especially for smaller teams or one-off hires, third-party services can feel expensive compared to DIY efforts.
• Less Internal Control: You’re relying on an external team to do things right. That’s why choosing a trustworthy background checker in the UK is critical.
• Risk of Data Breach: You need to share the confidential data of the candidates with the external team, which might put your business at risk of data breaches.
• Quality concerns: Not all background checkers are made equal. If you hire a low-quality service provider, you may get incorrect or partial findings.

Read our blog here to understand how to choose a right background checker in 2025.

Key Factors to Consider Before You Choose

Every company has its requirements. So, here’s a quick checklist to help you decide the best choice:

• Hiring Volume: If you hire a large pool of candidates weekly or monthly, it is not possible for an in-house team to manage it in less time, accurately. Therefore, you should consider partnering with a third-party background checker to handle large volumes.
• Type of Roles: Different roles require different types of checks. Low risk positions need basic checks, like Identity verification, employment reference, a basic DBS or criminal record check etc. These might suffice in-house. But roles that involve high level of trust, like those in finance, care, education etc, need special checks through various databases and government records, which is accessible by third party background screening companies.
• Legal & Compliance Needs: If you’re hiring in regulated sectors or across borders, outsourcing to a third party will keep you compliant and protect you from costly legal slip-ups.
• Candidate Experience: Smooth and quick checks = happy candidates. If your HR team is stretched thin, a third-party provider can handle it seamlessly.

What Does a Good Background Checker in the UK Offer?

If you’re leaning towards outsourcing, look for providers that offer:

• Criminal record checks (DBS/Disclosure Scotland)
• Identity and right-to-work verification
• Education and employment history validation
• Social media screening
• Credit checks for employment (especially for financial roles)
• Tailored reports for different job levels

Top providers also offer real-time tracking dashboards, GDPR-compliant processes, and customer support that walks you through the results.

What Are UK Employers Choosing in 2025?

Employers in the UK are leaning more towards third-party screening providers in 2025. Reason?

Because the consequences of doing it incorrectly much outweigh the benefits of doing it right.

With increased scrutiny on employers' background check processes and data handling, implementing a professional, compliant, and efficient background verification service provides peace of mind and a better reputation among talent.

However, organisations with low hiring volume, small budgets, or extremely specific internal processes can still do in-house work if they are ready to invest time and stay up to date on legal developments.

Final Verdict: In-House or Third-Party Background Checks?

Here’s a quick breakdown:

Factor	In-House	Third-Party
Cost	Lower upfront	Higher upfront, long-term value
Control	Full internal control	External, with transparency
Speed	Slower	Much faster
Scalability	Limited	Highly scalable
Compliance	DIY legal risk	Professionally managed
Tools/Resources	Basic	Advanced and official access

So, if you’re hiring in larger volumes, for sensitive roles you should consider third party background checker. But if you hire few candidates and have low budget in-house can work but you need to be careful.

In 2025, hiring smart means hiring safe. Whether you do it yourself or hire a pro, make sure your background checks are thorough, fair, and fully compliant.

Need help with reliable employment background checks?

Reach out to our team, we offer trusted, GDPR-compliant global background checking services, tailored to your hiring needs. Contact us for more information.