Sterling Check
NasdaqGS:STER
$
16,74
$
$0,00 (0,00%)
16,74
$
$0,00 (0,00%)
End-of-day quote: 11/04/2024
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Sterling Check Company Info
EPS Growth 5Y
0,00%
Market Cap
$1,64 B
Long-Term Debt
$N/A
Short Interest
0,00%
Annual earnings
N/A
Dividend
$0,00
Dividend Yield
0,00%
Founded
1975
Industry
Country
ISIN Number
Website
Analyst Price Target
The Analyst Price Target shows the analysts’ low, high, and average target at a glance.
$16,20
-3.23%
Last Update: 07/15/2024
Analysts: N/A
Highest Price Target $17,00
Average Price Target $16,20
Lowest Price Target $16,00
In the last five quarters, Sterling Check’s Price Target has fallen from $17,50 to $16,34 - a -6,63% decrease. Three analysts predict that Sterling Check’s share price will fall in the coming year, reaching $16,20. This would represent a decrease of -3,23%.
Top growth stocks in the industrials sector (5Y.)
What does Sterling Check do?
Sterling Check Corp. (Sterling) operates as a global provider of technology-enabled background and identity verification services.
The company offers a comprehensive hiring and risk management solution that begins with identity verification, followed by criminal background screening, credential verification, drug and health screening, processing of employee documentation required for onboarding and ongoing risk monitoring. The company's services are generally delivered through its purpose-built...
Sterling Check Corp. (Sterling) operates as a global provider of technology-enabled background and identity verification services.
The company offers a comprehensive hiring and risk management solution that begins with identity verification, followed by criminal background screening, credential verification, drug and health screening, processing of employee documentation required for onboarding and ongoing risk monitoring. The company's services are generally delivered through its purpose-built, proprietary, cloud-based technology platform that empowers organizations with real-time and data-driven insights to conduct and manage their employment screening programs efficiently and effectively.
The company's clients face a dynamic and rapidly evolving global labor market with increasing complexity and regulatory requirements. The company's services and platform enable organizations to make more informed employment decisions, improve workplace safety, protect their brand and mitigate risk. As a result, the company's solutions are mission-critical to its clients' core human resources, risk management and compliance functions. During the twelve months ended December 31, 2023, the company completed over 103 million searches for over 50,000 clients, including nearly 60% of the Fortune 100 and over 50% of the Fortune 500.
The company has built a proprietary and cloud-based technology platform. The company's client and candidate interfaces provide easy-to-use and mobile-first ordering, task and program management, results delivery and reporting analytics. This enables the company's clients to gain meaningful insights into their risk mitigation programs, all while creating exceptional candidate and employee experiences. The company's interfaces are supported by the company's powerful fulfillment platform, which leverages more than 3,600 automation integrations, including Application Programming Interfaces ('APIs') and Robotic Process Automation ('RPA') bots.
As of December 31, 2023, approximately 98% of the company's revenue was processed through platforms hosted in the cloud, which allows the company to consistently maintain 99.9% platform availability while being prepared to scale into the future. These platforms are seamlessly integrated into over 75 integrations with leading providers in applicant tracking systems ('ATS') and Human Capital Management ('HCM') systems and the company's clients' in-house systems, thus creating relatively frictionless, fast and unified candidate hiring experiences. Moreover, gig economy, contingent workforce, and enterprise clients, who utilize proprietary candidate workflow systems, may integrate into Sterling's platform by leveraging the company's proprietary API. When combined, the company's solutions deliver convenient and easy-to-use front-end interfaces, accurate and fast results, and enable the company's clients to effectively manage complex programs in a compliant manner.
As part of the company's strategic transformation, in early 2019, the company launched Project Ignite, a three-phase strategic investment initiative to create a cloud-native enterprise-class global platform. The remaining investment, which the company substantially completed in 2022, migrated the company's corporate technological infrastructure to the cloud and enabled the company to decommission redundant fulfillment systems. The company has benefited from the delivery of its new client and candidate interfaces, scalable cloud-based infrastructure for the company's global production platform and an improved security environment through new business wins, improved client retention and the ability to launch products rapidly to meet immediate client needs, as the company did in 2022 when the company developed its robust and proprietary core I-9 offering into a fully integrated I-9 solution within the company's Sterling platform and partner ecosystem. In 2022, the company also strengthened its competitive differentiation through the expansion of its identity capabilities in both the U.S. and the United Kingdom (the 'U.K'). In the U.S., with ID.me, the company became the only background screening provider to have a fully integrated reusable identity workflow within the screening process, furthering the company's leadership position to deliver identity services for employers in the U.S. In the U.K., the company became the first background screening organization to become a certified digital identity service provider and have partnered with Yoti to develop a comprehensive global identity verification solution. This new capability enables a faster and easier experience for prospective talent in the U.K. to verify themselves using modern technology while reducing the chance of identity fraud.
The company's client-centric approach underpins everything the company does. The company serves a diverse and global client base in a wide range of industries, such as healthcare, gig economy, financial and business services, industrials, retail, contingent, technology, media and entertainment, transportation and logistics, hospitality, education and government.
The company's delivery model provides its clients with both the personal touch and consultative partnership of a small boutique firm and the global reach, scale, innovation and resources of an industry leader. Additionally, this delivery model supports the company's principle of 'Compliance by Design', enabling clients to maintain compliance globally.
In January 2023, the company expanded its global presence into Latin America through the acquisition of Socrates Limited and its affiliates ('Socrates'), the largest independent screening company in Latin America. The acquisition will allow the company to better serve the rapidly growing regional hiring needs of both multi-national and local clients in a region with rapidly increasing hiring demands.
On March 1, 2023, the company acquired all of the outstanding shares of A-Check Global, a U.S.-based employment screening organization, providing the company access to a high quality, enterprise-focused customer base diversified across attractive verticals, including healthcare and telecom.
On January 2, 2024, the company acquired the equity interests of Vault Workforce Screening ('Vault'), a U.S. clinic management platform, bringing a network of 17,000 clinics and a flexible service model to enhance the company's existing drug and health services.
Growth Strategy
The company's growth strategies are to expand existing client relationships; win new clients; grow Identity-as-a-Service offering; introduce new products and penetrate adjacent markets; pursue further geographic expansion; leverage proprietary data; and pursue strategic M&A.
Technology and Operating Platform
The company's product portfolio is enabled by a core set of cloud-based, proprietary technology tools that provide access to court records, expedite workflows, and deliver highly accurate results. The outputs of these technology tools are seamlessly integrated into the company's client and candidate interfaces and the company's clients' HCM systems enabling a simple, fast and unified candidate hiring experience. These systems cannot easily be replicated and have enabled Sterling to boast some of the fastest turnaround times in the industry, while maintaining the quality the company's clients expect.
In early 2019, the company launched Project Ignite, a three-phase strategic investment initiative, to create a cloud-native enterprise-class global platform with best-in-class user experiences and product capabilities. This initiative has enabled the company to deliver a new client experience with enhanced analytics and dashboard tools; a streamlined, mobile-first, and localized candidate experience; movement of platforms processing approximately 98% of the company's revenue in the cloud; new product innovations; increased automation for improved efficiency, turnaround time and quality; and an improved security environment. The company continues to benefit from these enhancements through new business wins and improved client retention. Over the long term, the company expects these investments will continue to enhance its margins, improve time to market-as the company builds once and deploy globally-and allow the company to increase innovation.
Client and Candidate Interfaces
At the center of the Sterling background screening experience are the company's Sterling Candidate Hub, Sterling Client Hub and Sterling Analytics Hub, each purpose-built to meet the needs of specific end users.
Sterling Candidate Hub. Sterling Candidate Hub, launched in 2019, was built with today's candidate in mind from start to finish. The company's background, identity and compliance services sit between the recruiting and employee onboarding stages within a company's employee lifecycle. As such, Sterling Candidate Hub is one of the first interactions candidates have with the company's clients; the company has heard time and again from clients how important these initial interactions are, as they set the tone with new employees. Positive first impressions can lead to improved job acceptance rates, employee satisfaction and productivity. In response to these needs, the company has developed an intuitive, frictionless and mobile-first candidate experience. Sterling Candidate Hub provides a streamlined process for candidates to interact with Sterling and manage their entire screening process. The platform allows candidates the flexibility to provide information from any device in multiple languages and allows them to save time with mobile document uploads and e-signature capabilities. The platform is intelligent, so as to customize the information requested based on the specific package of services ordered; this means candidates need not waste time providing extraneous information. Progress is managed through text notifications and reminders.
Sterling Client Hub. No two clients are the same, but all demand a powerful yet easy to use platform. This is why the company purpose-built the company's cloud-based, proprietary technology client platform, Sterling Client Hub, in 2020. Sterling Client Hub consolidates candidate orders and data into a single, unified workflow, allowing clients to easily place orders, manage tasks, monitor statuses and view consumer reports. Its mobile responsive design stands apart from more cumbersome competitor platforms. Results are easy-to-read with intuitive results display and collapsible/expandable search details. The platform is flexible by design to allow clients the ability to configure permissions, access control by role, invitation and task workflows, packages and adjudication rules. Single-sign-on capabilities allow enterprise clients the ability to manage their programs consistent with security best practices. Sterling Client Hub is highly secure, designed to be easily augmented with new services and regularly updated to meet evolving compliance standards. All this enables the company's clients to manage complex screening programs with ease while reducing time-to-hire.
Sterling Analytics Hub. The currency of data and value of data-driven insights to clients, especially to program managers, is of paramount importance. The company's Sterling Analytics Hub provides clients with a customizable, powerful data analytics platform to display a comprehensive view of their screening programs. The company's robust suite of dashboards provides clients with the information they need to gain better insights and to make data-driven decisions as they seek to manage, streamline and optimize their programs. The Sterling Analytics Hub puts comprehensive program management one click away, while providing drill down capabilities and underlying data.
Platform Integrations
The company has one of the most integrated platforms in its industry as evidenced by the company's over 75 integrations with leading providers in the HCM and ATS ecosystem, as well as the company's robust Sterling Gig API capabilities. Over 60% of the company's revenue is generated from integrated clients.
The company's integration capabilities allow clients to benefit from improved productivity and profitability, streamlined candidate experiences and reduction in user-based errors and subsequent candidate disputes. Sterling benefits by increasing the stickiness of clients, reducing potential relationship friction from user-based errors and harvesting leads from the company's strong referral partnerships.
Sterling Integration Hub. The company's services can be directly integrated into the company's clients' proprietary workflows through one of the company's more than 75 platform integrations, further streamlining the company's clients' HR processes and improving candidate experiences, while creating a stickier client relationship. The company has developed a robust partner ecosystem with industry-leading HCM system providers, such as Oracle, SAP SuccessFactors, Workday Recruiting and Ultimate Kronos Group, among others. The Sterling Integration Hub middleware is proprietary and easily configurable to meet the needs of most corporate HR systems. Unlike many of the company's competitors, the company is not dependent on third-party middleware, which gives the company both the flexibility and the ability to customize to the needs of the market and control the company's own roadmap. The company delivers secure, partner-ready integration solutions that are built to scale to any size business.
Sterling Gig API. Sterling offers a well-documented public RESTful API. The company's API enables gig economy and enterprise companies to easily integrate their own applications into Sterling's platform. It provides a wide range of capabilities, customization options and mobility solutions out of the box, which means that implementation will not detract from core product development. The company is seeing this flexible API used with greater frequency where traditional HR based integration methods, like HRXML, have previously been used. In addition, this API opens up a multitude of use cases where Sterling can easily integrate into client and partner workflow applications.
Fulfillment Technology
Since Sterling launched one of the industry's first automated criminal record fulfillment platforms, CourtDirect, in 2006, the company has been at the forefront of leveraging technology to improve service fulfillment. The company has continually invested, innovated and iterated on the company's fulfillment technology and data acquisition for over 15 years. In total, the company's investments make it difficult for a competitor to replicate the company's global fulfillment systems without substantial investment. The company's fulfillment platform leverages over 3,600 proprietary and AI-driven automation integrations, including APIs and RPA bots, which enables 90% of the company's U.S. criminal searches to be automated and allows the company to complete 60% of the U.S. criminal searches within the first five minutes, 65% of the U.S. criminal searches within the first 15 minutes, over 70% of U.S. criminal searches within the first hour and 90% within the first day. The company's automation provides a significant competitive advantage and margin enhancement opportunity that can be deployed to other areas of Sterling, including account setup, procurement and financial reporting.
The company's well-developed fulfillment technology highlights the resiliency of the company's business model under even extreme conditions, providing clients with ease-of-mind and allowing them to focus on their own businesses. For example, Sterling's technologically enhanced fulfillment allowed the company to fulfill searches in at least 98% of the U.S. jurisdictions throughout the COVID-19 pandemic, while certain competitors struggled to operate.
Historical investments in CourtDirect, SmartData and Verifications Portal technologies not only reduce costs for Sterling and the company's clients, but also lead to improvements in speed, quality and compliance.
CourtDirect Technology. Underpinning Sterling's U.S. criminal searches is the company's third generation of CourtDirect, the company's proprietary criminal records delivery system. This technology automates a historically manual and time-consuming process by integrating with jurisdictions throughout the U.S. With access to millions of criminal records, CourtDirect provides faster turnaround times while decreasing human data entry errors. Because CourtDirect is the company's proprietary technology, the company uses vendors to retrieve county court records on a limited basis, unlike many of the company's competitors. In jurisdictions where automation is not possible or practical, the company seeks to hire its own court runners rather than rely exclusively on third-party vendors. This gives the company greater control over its supply chain and the ability to achieve faster turnaround times on average.
SmartData Technology. Where CourtDirect performs automated criminal record search and retrieval, the company's proprietary SmartData technology automates Sterling's criminal record review processes, thus eliminating manual steps so that services can be completed quickly and efficiently. The technology starts by ensuring that returned criminal records can be positively attributed to the specific candidate being searched using the company's proprietary AI matching algorithms. The technology then standardizes criminal charges, conviction codes and disposition codes among the thousands of courts within the U.S., after which it applies U.S. federal, state and local laws and regulations to the standardized records. Through years of work, the company has been able to standardize over 750,000 permutations of state, charge and disposition combinations. The standardization work that SmartData performs also allows the company to administer a clients' customized adjudication matrix at their direction more easily. With SmartData all of this is done without human intervention, resulting in reduced human error, increased accuracy and shorter turnaround times. For example, the company noted an approximately 55% reduction in turnaround times following the adoption of SmartData to Sterling's criminal record review process. Over 55% of the company's potential criminal record reporting volume is auto-closed using the technology; where required, Sterling's experienced team members perform the record review processes. Unlike an outsourced solution that some competitors use, Sterling has full control to make changes quickly in response to client needs, changes in laws and regulations, or simply for enhancements based upon the company's own review.
Verifications Portal. The company's Verifications Portal is a proprietary fulfillment platform that delivers increased efficiencies, higher productivity, improved quality and faster turnaround times for the company's clients. The Verifications Portal's functionality removes the need for manual work assignment by queuing up the next available work for a Sterling verifier based on the employee's skillset. Additionally, it leverages algorithms to intelligently group and map work. For example, the Verification Portal can group verifications from a particular employer and assign them to a single agent so that outreach to said employer is optimized. It uses automation to allow Sterling to highly customize the company's clients' credential verification programs without sacrificing productivity, speed or accuracy. The Verifications Portal is used in conjunction with direct APIs to the company's vendor partners and the company's proprietary Verifications Contact Database that tracks known entities and their preferred mode of fulfillment, decreasing the verifier's research time. This database is a proprietary asset compiled over many years and updated daily, providing a strong competitive advantage in enabling Sterling to fulfill verifications more efficiently.
Suite of Services
Identity Verification
Sterling's identity verification services provide the company's clients with real-time information about a candidate to help validate and verify who they are hiring before they begin a background check. With the continued movement toward remote work, the prevalence of digitized identification information and increase in data breaches, there is an ever-growing risk that a candidate may be using a stolen identity when applying for a job and completing a background check. The company's comprehensive set of solutions helps clients to mitigate that risk through the following services:
Online Identity-as-a-Service Suite.
In the U.S., Sterling's exclusive partnership with ID.me provides the company with an identity verification solution that is recognized as best-in-class and has been adopted by numerous U.S. federal agencies and states. Individuals get a reusable secure digital identity credential so they only go through identity verification once. The company's online Identity-as-a-Service suite with ID.me is made up of five identity verification building blocks that are combined to meet a client's unique required level of comfort, including meeting the U.S. federal National Institute of Standards and Technology 800-63 technical requirements for federal agencies and contractors implementing digital identity verification services. The building blocks are:
Telecom and Device Verification: Verify that the SIM card in a mobile device is associated with the candidate's identity. Evaluate the tenure of the account, device location and fraud history.
Identification Document Verification: Scan, verify and parse document images using machine vision to extract content, leveraging a proprietary database of rules and AI to verify document authenticity. ID.me contains 110 million pre-verified identities within the database and is growing.
Facial Recognition with Biometric Matching: Match a government identity document to the candidate's selfie image using advanced machine learning technologies.
Social Security Number Verification: Validate a candidate's biographic information, such as name, address and other identifying information against credit bureau records.
Live Video Chat Identification Proofing: As a failover option or upon client preference, the company provides individuals the ability to complete identity proofing with a trained 'Trusted Referee' via video conferencing.
Internationally, Sterling has partnered with Yoti to streamline background checks and expand its digital identity solutions. The global partnership is expanding the company's digital identity capabilities in EMEA, APAC, Canada and Latin America, accelerating the company's intention to create privacy-centric portable identities for candidates.
The partnership enables a digital identity verification workflow to be integrated directly into the hiring process, allowing employers to take an identity-first approach, where a candidate's identity is verified before completing other background checks and before actually being hired.
Candidates who verify their identity through Sterling and Yoti will be able to seamlessly create a secure, reusable digital identity. This will allow them to verify their identity once and share their details with other businesses in seconds, making the verification process more streamlined for employers and candidates. Individuals will be able to use their digital identity for future job opportunities, age verification and any process requiring identity verification.
Sterling clients and their candidates can enjoy the unique experience in the U.K. with additional international regions planned for 2024.
Fingerprinting
The company provides fingerprinting services through its proprietary technology in a single-sourced and convenient national network with locations in all 50 U.S. states. The company's digital fingerprint capture technology reduces rejection rates and speeds up processing for faster onboarding and the company is certified with the FBI, FINRA, Florida Department of Law Enforcement and the Agency for Healthcare Information to submit electronic fingerprints directly. In addition, FINRA has contracted with Sterling to be its exclusive fingerprint provider. Under this agreement, the company processes and submits fingerprints to the FBI for all broker-dealer firms, funding portals, transfer agents and clearing agencies.
Background Checks
The company's background check solutions utilize proprietary automation technology that delivers more thorough, faster and accurate records. These solutions include:
Criminal Record Checks. Within the U.S., there is no single source for criminal records; instead, records are stored at 3,500+ local and county courthouses, as well as separate state and federal databases, making it time and cost prohibitive to search all jurisdictions. Sterling uses a four-step process to address the complexity of the U.S. court systems. First, the company determines where to search to locate a candidate's possible criminal records and under what potential names using some or all of (i) a social security number trace to determine the addresses where a candidate has lived and what aliases the candidate may have used, (ii) a search of a national criminal record database, and (iii) an incarceration and bookings database. Second, the company leverages its CourtDirect technology to search and review each primary source jurisdiction and review the records for completeness. Next, the company utilizes its SmartData technology to determine whether candidate data matches any court records, filter the records per compliance requirements and apply specific client instructed adjudication rules. Finally, the company delivers the results in a consumer report.
Outside the U.S., Sterling supports criminal record searches in over 240 countries and territories. A global workforce requires dynamic, in-depth background checks from an experienced provider. The trend toward more people traveling across international borders for work requires the ability to conduct background checks in multiple geographies and jurisdictions for a single candidate. Each country and territory may have its own set of criminal data availability and access restrictions. For most of Sterling's searches, the company has access to nationwide or local court records directly or through approved partners. Some geographies require local police clearance authorizations that are obtained by the candidates, which are then validated by Sterling. In geographies that do not allow for either nationwide or local court records retrieval or police clearance authorization, Sterling utilizes databases that aggregate records worldwide from governments, courts, regulatory and law enforcement agency sources to identify potential criminal activity.
Sex offender registries. Within the U.S., Sterling searches through the United States Department of Justice ('DOJ') National Sex Offender Public Website ('NSOPW'), which includes registered sex offenders in all 50 U.S. states, the U.S. territories, the District of Columbia and participating Indian tribes. Sex offender registry searches are critical to ensuring employees, especially those with direct access to consumers and vulnerable populations, do not have relevant records.
Civil court records. Sterling searches the U.S. County court and federal civil settlement records and equivalents in many other countries and territories based on where the candidate has lived that match the company's client's needs and requirements. The company's Civil Court Record Searches help make clients aware of potential threats and arm them with facts to make well-informed decisions on which candidates align best with their organization. The company's search reveals details such as breach of contracts, civil judgments, lawsuits, paternity suits, domestic disputes, divorces and restraining orders.
Motor vehicle and driving license records. The company's Motor Vehicle Record ('MVR') reporting includes license type and class, restrictions, expiration date, endorsements, suspensions or revocations, violations/tickets, accidents and Driving Under the Influence ('DUI') or Driving While Intoxicated ('DWI') violations. Within the U.S., many of the company's clients require compliance with Federal Motor Carrier Safety Administration and DOT regulations.
Executive investigations. For clients who require a higher level of insight, the company's enhanced due diligence subsidiary, Sterling Diligence, provides executive-level due diligence and executive screening and global investigations. The company's executive investigation services are trusted by Fortune 100 companies, as well as some of the world's most prestigious healthcare companies, law firms, accounting firms, professional service providers, financial institutions, and mergers and acquisitions specialists.
Credit reports. Credit checks are often mandated for candidates with managerial, accounting, financial record or check-writing responsibilities, and the company's reports reveal unbiased insights into candidates' financial trustworthiness.
Liens, Judgments, Bankruptcies. The company's liens, judgments and bankruptcies product checks a U.S. nationwide database to determine where a candidate may have relevant records. The company then searches the identified U.S. civil courts to confirm and validate the records prior to reporting. This search is often combined with a credit check.
Social media searches. Social media background checks provide vital information that help employers minimize the risk of a bad hire. Sterling helps companies protect their brands by screening potential and current employees using publicly available online information. The company's social media searches, the scope of which are determined by the company's clients, reduces risk with a solution that enhances ethical decision-making and compliance by proactively identifying behaviors, such as bigotry, sexism and violence.
Contingent Workforce Solution. The company's contingent workforce solution allows clients to centrally and effectively manage their contingent worker program by quickly and easily onboarding new contractors, obtaining program and contractor level reporting and having candidates pay for their own screens if desired.
Sanctions, risk and compliance checks. Sterling can search a variety of sanctions databases, including the U.S. Department of the Treasury's Office of Foreign Assets Control ('OFAC') list of Specially Designated Nationals and Blocked Persons, commonly referred to as a terrorist watch list; Office of Inspector General ('OIG'); List of Excluded Individuals/Entities; the System for Award Management ('SAM'); the Excluded Parties List System ('EPLS'); the Department of Health and Human Services ('HHS'); state exclusions, sanctions, debarment, and disciplinary actions against healthcare professionals and businesses lists; and a database of foreign government restriction, sanction and exclusion records.
Credential Verification
The company's global verification services include the following:
Employment Verification. Verifies a candidate's employment history and records with HR, payroll or third-party providers. Verification can cover periods of traditional employment, as well as temp agency assignments, military history, and periods of self-employment. An employment history can be supplemented with a gap assessment, wherein Sterling identifies and validates gaps in a candidate's employment history.
Education Verification. Verifies a candidate's education history and records with school registers or designated third-party providers at the collegiate, high school, GED and home-schooling levels.
Credential Verification. Verifies many types of licenses and credentials, such as financial FINRA checks, nursing licenses, medical licenses and others.
Professional Reference Checks. Verifies a candidate's character and work proficiency.
Department of Transportation. Within the U.S., verifies employment with DOT-regulated companies. Verification confirms job title, start/end dates, reason for leaving, prior accidents, injuries and other DOT mandated information.
Drug and Health Screening
The company's U.S. drug and health screening services offer comprehensive pre-and post-hire drug screening with access to an expansive collection network of approximately 20,000 test sites nationwide. The company offers drug screening services designed to reduce turnaround times, increase efficiency and improve the overall candidate and client experiences. The convenience of end-to-end electronic processing, online scheduling and walk-in collection sites enable employees and candidates to access locations and times that work best for them nationwide. The company utilize Medical Review Officer Certification Council certified medical review officers that are licensed physicians responsible for receiving and reviewing each laboratory result issued. In addition, the company offers access to an array of occupational health screening and clinical services such as physicals, fit for duty exams, titers, vaccinations, and a variety of other services.
The company's commitment to client-centric innovation throughout its service lines led to the development of the company's fast-growing Clinical Services Concierge service. For those clients that require additional support to clinical services, this service can help relieve the stress of managing a complex drug and health screening program. The company offers personalized candidate instruction through a dedicated clinical concierge professional who can provide candidates step-by-step assistance to lead them through the process, creating a more seamless process and ensuring candidates are able to start on the date planned. The company can also tailor its testing and services to meet the company's clients' unique business and compliance requirements including instant point-of-care tests, onsite testing options and random testing selection.
Onboarding
The company's onboarding solutions include the following:
Sterling I-9. With ever-changing U.S. regulations, many employers either complete Form I-9 incorrectly or continue to rely upon paper-and-pencil Form I-9 completion with onsite storage. Remote workplaces and telework create additional requirements and logistical challenges. Sterling's in-house, fully digital I-9 solution, Sterling I-9, provides seamless integration with the company's full suite of screening and onboarding services. It provides a mobile-responsive experience for both clients and their candidates. Having an in-house solution, unlike many of the company's competitors, allows for deeper integrations into the company's clients' workflows while enabling the company to respond faster to client and market needs.
Onboarding forms. Sterling's offering eases the burden for clients of processing the employee documentation required for onboarding. The company's offering includes standard tax withholding and Equal Employment Opportunity ('EEO') disclosure forms as well as client-designed custom onboarding forms. The company's solution validates data upon entry and checks for skipped questions, thus reducing opportunities for mistakes.
Ongoing Monitoring
Employers across industries are increasingly focused on managing risk in the workplace beyond initial hire through continuous screening and monitoring. The company's ongoing monitoring solutions within the U.S. include the following:
Workforce monitoring. The company's workforce monitoring solution provides tools for clients to mitigate risk and liability through near real-time alerts on employee potential criminal behavior, such as DUIs, assaults, fraud and theft.
Medical license monitoring. The company's medical licensing monitoring solution helps mitigate brand and regulatory risk by providing a more efficient way for clients to identify individuals whose valid medical licenses may no longer be valid.
Motor vehicle records monitoring. The company's MVR monitoring solution provides continuous driver monitoring, driver list management, real time reporting, on-demand MVRs and access to driver training. For certain industries (e.g. transportation and logistics, gig, etc.) driver risk management is a critical business issue affecting reputation, profitability and regulatory compliance.
Clients
The company serves the background and identity verification services needs of more than 50,000 clients. The company's client base is diversified in size of client and industry and includes nearly 60% of the Fortune 100 and over 50% of the Fortune 500. The company's top 25 clients accounting for less than 20% of revenue. The company serves the healthcare, gig, financial and business services, industrials, retail, contingent, technology, media and entertainment, transportation and logistics, hospitality, education and government industries. The company employs an operating model organized by Vertical and Region that produces differentiated end-market insights and allows the company to tailor solutions to meet the needs of each industry the company serves.
The company's client relationships are contractual in nature and typically have multiple year terms with no termination for convenience clauses. A majority of the company's U.S. enterprise client contracts are exclusive to Sterling or the client is required to use Sterling as their primary provider. Additionally, the company's offerings are tightly integrated with its clients' ATSs and HCM systems, further cementing the company's services into its clients' daily HR workflows.
Sales and Marketing
The company sells its solutions through a direct sales team organized by Vertical and Region. Each Vertical and Region has dedicated product marketing personnel and budget. Sales representatives are then responsible for the end-to-end selling process, including discovery, demonstration, negotiation and closing. The company's sales representatives are trained to take a consultative approach to the entire new business process in order to understand the specific challenges and industry-specific nuances faced by clients. Based on this research, they design a pursuit strategy and propose solutions tailored to the client's needs. Sterling's sales approach ensures that the company keeps the client and their needs at the center of the company's process. Each sales representative's productivity is tracked toward individual quotas with performance measured and reported daily.
Additionally, Sterling utilizes professional services and client success teams, which are also aligned by Vertical and Region, that are responsible for seamless client onboarding, client retention and upselling opportunities. The company's Vertical and Region teams partner with centralized shared services groups that provide certain critical processes, including sales cycle management, training, analytics, requests for proposals, marketing operations, brand and digital marketing, pricing, integrations support and client implementations. This provides clients with a smooth experience from prospecting through implementation and support. As of December 31, 2023, the company had more than 70 sales representatives and more than 580 client success professionals.
Clients count on Sterling for thought leadership in how they design and optimize their programs. The company's client partnership model builds on its Vertical and Region team approach to help clients meet their specific objectives.
Regulation
The company is subject to laws and regulations globally regarding among other things, the collection, use, disclosure, sale, transfer, receipt, storage, transmission, destruction, and other processing of personal data, including among others, (i) the FCRA and state consumer reporting agency regulations, (ii) the GDPR, (iii) the U.K. data protection regime (the 'U.K. GDPR'), (iv) the Health Insurance Portability and Accountability Act ('HIPAA'), (v) the Drivers' Privacy Protection Act and (vi) the Illinois Biometric Information Privacy Act ('BIPA'). In addition, a November 2019 settlement with the CFPB also requires the company to comply with the FCRA. These laws and regulations increase the company's operational requirements and subject the company to risk of costly governmental fines and penalties, as well as private claims.
Seasonality
Demand for the company's products and services and the company's revenue is affected seasonally by macroeconomic hiring trends. Typically, revenue acceleration begins in the first quarter (year ended December 2023), with steady growth across the quarters as hiring accelerates. The fourth quarter, ending December 31, is typically the company's lowest revenue quarter due to a general market trend of lower hiring during the latter half of December due to the holidays. Also, certain clients across various industries historically have ramped up their hiring throughout the first half of the year as winter concludes, commercial activity tied to outdoor activities increases, and the school year ends, giving rise to student and graduate hiring.
History
Sterling Check Corp. was founded in 1975. The company was incorporated in the state of Delaware in 2015.
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