Q: What are the advantages of participating in the NAOHP/Acxiom arrangement to offer background screening services to employers?
Advantages of the Occupational Health Program
- A strong, ongoing revenue stream: Participating in NAOHP member programs will receive 20 percent of gross revenue associated with each background check transaction provided to client companies or their parent organizations in the first year and 10 percent of revenue generated in the second year from year-one referrals, paid monthly. (Acxiom retains the right to qualify referrals in the event a company is already an Acxiom customer.)
- Affiliation with a national leader in background checks: Cleveland-based Acxiom offers the most thorough, real-time services available in the industry.
- Minimal time investment: The occupational health program simply provides the lead and Acxiom’s national sales staff takes care of the sale.
- Complimentary marketing materials: Acxiom and the NAOHP will provide all participating member programs with complimentary marketing materials and website links.
- The time is right: Post-9/11, the demand for background checks is increasing and is likely to grow even more pronounced over time.
Advantages for Employers - A vital service: Many human resources and risk management professionals consider background checks to be an integral part of the pre-hire screening process in order to mitigate risk and enhance the quality of the workforce.
- Easy access: Background checks can be ordered online with minimal turnaround time.
- Privacy: Sensitive human resource data is protected when using the Acxiom system. Advantage for Acxiom
- A promising market: The NAOHP’s 2,000-plus membership base provides an extraordinary opportunity to attract significant new background check volumes in a short period of time. That is why Acxiom is willing to pass 20 percent of gross revenue back to NAOHP member programs.
Q: What is the revenue potential for a typical NAOHP member program?
A: Let’s run the numbers: Let’s run the numbers:
Year 1 Assumptions
- 50 employer clients sign up for background checks
- The average employee population of the 50 employer clients is 300
- The average employer turnover is 20 percent
- The average charge for a background check package is $35
- 50 clients x 300 employees per client = 15,000 employees
- 15,000 employees x 20% turnover = 3,000 new hires
- 3,000 background checks @ $35 = $105,000
- 20% royalty on $105,000 = $21,000
Year 2
Assume the same performance as Year 1 (50 new employers sign up)
Year 2 new business royalty
= $21,000
Year 1 carry-over royalty @10%
= $10,500
Total Year 2 royalties: $31,500
Q: How does an NAOHP member program sign up?
A: Download a registration form from the Acxiom Website (https://aissreports.acxiom.com/naohp) or call or email Michael Briggs at 800-853-3228, ext. 7678 or mibrig@acxiom.com. Once your program is registered, you will obtain access to a standardized form for referring your employer clients to Acxiom.
Q: When and how does the referring program get paid?
A: The program will receive a monthly check from Acxiom reflecting all payments were received from approved referring companies during the previous calendar month.
Q: What if our own organization wants to participate?
A: Your program and/or parent organization can be one of your referrals. You will still receive the 20 percent commission in the first year and 10 percent in the second year.
Q: What is our liability risk?
A: There is none. All relationships are between Acxiom and the employer clients you refer.
Q: How can we – and our employer clients – learn more about background checks?
A: The NAOHP, in conjunction with Acxiom, will be offering complimentary web-based seminars to NAOHP member programs, their client companies and prospective clients in the next few months. Watch for announcements.
Q: Who markets this service to our employer clients – our program or Acxiom?
A: Either way. You can simply provide Acxiom with a list of prospects and they will take it from there. When an employer signs up, a referral code triggers the 20 percent commission. Alternatively, your program can market the product at the point of sale. In that case, Acxiom would step in to close the deal and complete the enrollment process.
Q: How do I learn more?
A: Call Janelle Schueler at the NAOHP office, 800-666-7926, ext. 12, or visit www.NAOHP.com.
