Employment screening service is a background checking system utilized by corporate organizations to evaluate various credentials such as education, employment history, criminal records, and financial details of individuals before hiring. The adoption of the service is critical for organizations to establish trust over the employees, comply with the employment regulations, ensure workplace safety, and mitigate risks or criminal activities. The key benefits of using employment screening services include its speed, efficiency, accuracy, and expertise of the screening professionals.
With the implementation of stringent government regulations pertaining to the prevention of bias in hiring process and safeguarding the workplaces from potential frauds, the adoption of employment screening services is observing a noteworthy surge. In addition, remote work culture has boosted the globalization of the workforce. This necessitates the usage of employment screening services to ensure the compliance of international employees with the local regulations. To quicken the screening process and maintain data integrity, the assimilation of AI and blockchain in the screening services is an emerging trend. AI assesses bulk data in short durations and identifies discrepancies often overlooked by human reviewers. Further, blockchain prevents the manipulation of candidates’ data and ensures ease of accessibility through its decentralized ledger.
However, the high cost of availing the screening services prevents several small-scale organizations from investing, hence restraining the growth of the market. While the screening services ensure the privacy of employee data, they remain at high risk of data breach and cyberattacks, which deters the trust of organizations and limits the widespread expansion of the market. On the contrary, constantly rising thefts and criminal activities are poised to mandate the use of employment screening services in the future. According to Techjury, a tech blog platform, approximately 75% of the employees have once been involved in theft from their employers. Moreover, around 42.5 million individuals in the U.S. fabricate their resume.
Segment Review
The employment screening services market is segmented into services, application, and region. On the basis of services, the market is divided into criminal background checks, education & employment verification, credit history checks, drug & health screening, and others. By application, it is classified into healthcare, IT/technology/media, financial services, staffing, retail, industrial, travel/hospitality, government/education, transportation, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key Findings
On the basis of services, the criminal background checks segment dominated the market in 2023.
By application, the financial services segment garnered a high share of the market in 2023.
Region wise, North America was the highest revenue generator in the market in 2023.
Competition Analysis
The leading players operating in the global employment screening services market include ADP LLC, Capita PLC, CareerBuilder LLC, Experian plc, First Advantage, HireRight LLC, Insperity Inc., Paychex, Inc., Paycor, Inc., REED, Sterling Talent Solutions, and Accurate. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, to strengthen their foothold in the competitive market.
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Key Market Segments
By Services
- Criminal Background Checks
- Education and Employment Verification
- Credit History Checks
- Drug and Health Screening
- Others
By Application
- Healthcare
- IT/Technology/Media
- Financial Services
- Staffing
- Retail
- Industrial
- Travel/Hospitality
- Government/Education
- Transportation
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- France
- Germany
- Italy
- Spain
- UK
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- ADP LLC
- Capita PLC
- CareerBuilder LLC
- Experian plc
- First Advantage
- HireRight LLC
- Insperity Inc.
- Paychex, Inc.
- Paycor, Inc.
- REED
- Sterling Talent Solutions
- Accurate
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Table of Contents
Executive Summary
According to the report titled, 'Employment Screening Services Market by Service and Application: Global Opportunity Analysis and Industry Forecast, 2019-2026,' the global employment screening services market was valued at $4.06 billion in 2018 and is projected to reach $7.64 billion by 2026, growing at a CAGR of 8.3 % from 2019 to 2026.
Employment screening refers to a process where the employer verifies the behavior as well as screens candidates for drugs. The main purpose of employment screening is to eliminate the need to interview a large number of unsuitable candidates and increase the effectiveness of the employment process. The growth of the employment screening services market is expected to be supplemented by an increase in availability and accessibility of employment screening services in developed as well as developing economies, advantages of employment screening services, and enhanced regulatory compliance associated with these services. Furthermore, the growth of startup organizations globally along with the untapped potential of emerging markets provides promising future prospects to the key players for market growth. However, risks associated with the safeguarding and disposal of information collected during the hiring process are expected to impede the market growth.
By service, the global employment screening services market was led by the criminal background checks segment in 2018 and is projected to maintain its dominance during the forecast period. The major factors that drive adoption of criminal background checks in the employment screening service market include a rise in the adoption of criminal background check services in various industry verticals for checking the background of the individual. However, the education & employment screening services are expected to grow at the highest rate during the forecast period, owing to the rapid adoption of these services by various industries to provide detailed information about the c candidate's previous education & employment background.
Region wise, the employment screening services market was dominated by North America in 2018 and is expected to retain its position during the forecast period. The major factors that drive the growth of the market in this region include a rise in the adoption of these services by various industries for verifying the background of the international candidates and to choose an efficient candidate for the job. However, Asia-Pacific is expected to witness the highest growth rate during the forecast period, owing to an increase in accessibility and availability of these services and a rise in availability of surplus human resources, jobs, and employment in this region.
According to Pramod Borasi, Research Analyst, ICT, “Government sector is expected to experience significant growth in the upcoming years, owing to high adoption of employment screening services in developed nations such as the U.S. and Canada, for verifying the background of immigrant candidates for various government jobs.”
KEY FINDINGS OF THE STUDY
- On the basis of service, the criminal background checks segment led the employment screening services market in terms of revenue in 2018.
- By application, the banking & financial segment accounted for the highest employment screening services market share in 2018.
- Region wise, North America generated the highest revenue in 2018.
The key players profiled in the employment screening services market analysis are Insperity, ADP LLC, Experian, First Advantage, HireRight LLC, Capita PLC, REED, Paychex, Inc., CareerBuilder LLC., and Paycor, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Companies Mentioned
Key Market Players in the Employment Screening Services Market include:- ADP LLC
- Capita PLC
- CareerBuilder LLC
- Experian plc
- First Advantage
- HireRight LLC
- Insperity Inc.
- Paychex, Inc.
- Paycor, Inc.
- REED
- Sterling Talent Solutions
- Accurate
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 250 |
| Published | July 2024 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value ( USD | $ 6.3 billion |
| Forecasted Market Value ( USD | $ 16.8 billion |
| Compound Annual Growth Rate | 11.1% |
| Regions Covered | Global |
| No. of Companies Mentioned | 13 |
