The global employment screening services market size reached US$ 5.7 Billion in 2023. Looking forward, the publisher expects the market to reach US$ 11.0 Billion by 2032, exhibiting a growth rate (CAGR) of 7.58% during 2023-2032. The market growth is driven by the rising demand for remote hiring, along with the increasing emphasis on data security and AI integration.
As the number of immigrants seeking employment opportunities in foreign countries rises, employers face the challenge of verifying the backgrounds and qualifications of these candidates. Employment screening services help employers to ensure that immigrant job applicants have the necessary credentials, work experience, and legal eligibility to work in their respective countries. This, in turn, is propelling the employment screening services industry. Many countries have strict immigration laws and regulations governing the employment of foreign workers. Employers are required to verify the immigration status, work permits, and legal documentation of immigrant job candidates to comply with these laws.
Employment screening services assist employers in conducting thorough checks to ensure compliance with immigration regulations. For instance, migration to OECD countries has increased significantly with more than six million permanent immigrants in 2022. Countries, such as Canada and United Kingdom, have recorded the highest numbers. Moreover, the Parliament of Australia passed a Migration amendment bill in July 2023 to strengthen the employer compliance measures and protect the temporary migrant workers from exploitation. These drivers are anticipated to augment the employment screening services market growth over the foreseeable future.
Compliance with industry-specific regulations, such as those set forth by the Financial Industry Regulatory Authority (FINRA) or the Health Insurance Portability and Accountability Act (HIPAA), necessitates thorough background checks and ongoing monitoring of employees. Furthermore, heightened concerns about data privacy and protection have led to the implementation of stricter regulations governing the collection, use, and storage of personal information. This will continue to catalyze the employment screening services market over the forecasted period.
While startups may operate in a fast-paced and dynamic environment, they are still subject to regulatory requirements governing employment practices, such as the Fair Credit Reporting Act (FCRA) in the United States. Employment screening services assist startups in complying with these regulations by ensuring that their hiring processes adhere to legal standards and best practices. As startups continue to proliferate and play a significant role in the global economy, the demand for employment screening services is expected to grow in the coming years.
For instance, Metaview, an AI hiring software company based in London has raised US$ 7 Million for its LLM-based software that aims to automate the analysis of jobs during the hiring process. Moreover, InCruiter has also launched its AI recruiting tool to its wide range of remote hiring options. With AI interviews, InCBot revolutionized remote hiring by making improvements in speed, accuracy, and fairness.
Global Employment Screening Services Market Analysis:
- Major Market Drivers: The rising concerns among companies about security of their employees, strict regulations and compliances by the government bodies is positively influencing the employment screening services market outlook. Moreover, the growing usage of technologies, such as artificial intelligence, machine learning, automation, etc., is expected to further proliferate the employment screening services market revenue.
- Key Market Trends: The escalating need for background checks, owing to the elevating incidences of fraud, is transforming the employment screening services industry. Employers are increasingly relying on screening services to verify the identities, qualifications, criminal histories, and employment backgrounds of potential hires.
- Geographical Trends: According to the employment screening services market research, North America accounted for the largest market share. The rising awareness among individuals in the region towards data security risks is one of the primary factors augmenting the market growth. Apart from this, businesses in North America are adopting cloud computing for data storage, thereby positively impacting the employment screening services market demand in the region.
- Competitive Landscape: Some of the major market players in the employment screening services industry include A-Check America Inc., ADP Inc., Capita PLC, CareerBuilder LLC, Experian plc, First Advantage, HireRight LLC, Insperity, Paychex Inc., Paycor Inc., REED and Sterling, among many others.
- Challenges and Opportunities: Heightened concerns around data privacy and protection pose challenges for the screening service providers. Moreover, ensuring the security of sensitive candidate information throughout the screening process, including data storage and transmission, is critical to maintaining trust and compliance with regulations. This, in turn, can hamper the employment screening services market growth. However, technologies, such as artificial intelligence (AI) and automation, offer opportunities for enhancing the efficiency and accuracy of screening processes, thereby increasing the employment screening services market value.
Global Employment Screening Services Market Trends:
Rising Job ImmigrantsAs the number of immigrants seeking employment opportunities in foreign countries rises, employers face the challenge of verifying the backgrounds and qualifications of these candidates. Employment screening services help employers to ensure that immigrant job applicants have the necessary credentials, work experience, and legal eligibility to work in their respective countries. This, in turn, is propelling the employment screening services industry. Many countries have strict immigration laws and regulations governing the employment of foreign workers. Employers are required to verify the immigration status, work permits, and legal documentation of immigrant job candidates to comply with these laws.
Employment screening services assist employers in conducting thorough checks to ensure compliance with immigration regulations. For instance, migration to OECD countries has increased significantly with more than six million permanent immigrants in 2022. Countries, such as Canada and United Kingdom, have recorded the highest numbers. Moreover, the Parliament of Australia passed a Migration amendment bill in July 2023 to strengthen the employer compliance measures and protect the temporary migrant workers from exploitation. These drivers are anticipated to augment the employment screening services market growth over the foreseeable future.
Stringent Regulations and Improved Regulatory Compliance
Governments worldwide are imposing stricter regulations on employment practices to ensure fair treatment of employees and protect against discrimination, thereby stimulating the employment screening services market revenue. For instance, regulations, such as the Fair Credit Reporting Act (FCRA) in the United States and the General Data Protection Regulation (GDPR) in Europe mandate specific procedures for background checks and require employers to obtain consent from job candidates before conducting screenings. Certain industries, such as finance, healthcare, and education, have additional regulatory requirements for employee screening due to the sensitive nature of the work involved.Compliance with industry-specific regulations, such as those set forth by the Financial Industry Regulatory Authority (FINRA) or the Health Insurance Portability and Accountability Act (HIPAA), necessitates thorough background checks and ongoing monitoring of employees. Furthermore, heightened concerns about data privacy and protection have led to the implementation of stricter regulations governing the collection, use, and storage of personal information. This will continue to catalyze the employment screening services market over the forecasted period.
Growing Number of Startups
According to the employment screening services market statistics, startups are experiencing rapid growth and expansion, leading to an increased need for hiring new employees. As they scale their operations, they require efficient and reliable employment screening services to ensure they make informed hiring decisions and mitigate hiring risks. For instance, according to the American Progress, entrepreneurs filed 450,000 employer application forms in the fourth quarter of 2023.While startups may operate in a fast-paced and dynamic environment, they are still subject to regulatory requirements governing employment practices, such as the Fair Credit Reporting Act (FCRA) in the United States. Employment screening services assist startups in complying with these regulations by ensuring that their hiring processes adhere to legal standards and best practices. As startups continue to proliferate and play a significant role in the global economy, the demand for employment screening services is expected to grow in the coming years.
Integration of Artificial Intelligence
AI algorithms can analyze resumes, cover letters, and job applications to identify qualified candidates based on predefined criteria. This automated screening process saves time and resources for employers and screening service providers by quickly filtering out unqualified candidates, which is one of the key employment screening services market drivers. Moreover, these tools can conduct comprehensive background checks on candidates by analyzing vast amounts of data from various sources, including public records, social media profiles, and online databases. This helps identify any discrepancies or red flags in a candidate's background more efficiently than traditional manual methods.For instance, Metaview, an AI hiring software company based in London has raised US$ 7 Million for its LLM-based software that aims to automate the analysis of jobs during the hiring process. Moreover, InCruiter has also launched its AI recruiting tool to its wide range of remote hiring options. With AI interviews, InCBot revolutionized remote hiring by making improvements in speed, accuracy, and fairness.
Employment Screening Services Industry Segmentation:
The publisher provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on service, organization size, and application.Breakup by Service:
- Criminal Background Checks
- Education and Employment Verification
- Credit History Checks
- Drug and Health Screening
- Others
Breakup by Organization Size:
- Small and Medium Enterprises
- Large Enterprises
Breakup by Application:
- Healthcare
- IT & Technology and Media
- Financial Services
- Staffing
- Retail
- Travel and Hospitality
- Government and Education
- Transportation
- Others
Breakup by Region:
- North America
- United States
- Canada
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Indonesia
- Others
- Europe
- Germany
- France
- United Kingdom
- Italy
- Spain
- Russia
- Others
- Latin America
- Brazil
- Mexico
- Others
- Middle East and Africa
Leading Key Players in the Employment Screening Services Industry:
The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:- A-Check America Inc
- ADP Inc.
- Capita PLC
- CareerBuilder LLC
- Experian plc
- First Advantage
- HireRight LLC
- Insperity
- Paychex Inc.
- Paycor Inc.
- REED
- Sterling
Global Employment Screening Services Market News:
- February 2024: Employment background check company, First Advantage Corp., situated in Atlanta, announced to purchase Independence, Ohio-based Sterling Check Corp. in a transaction valued at about US$ 2.2 Billion in cash and stock.
- February 2024: Stone Point Capital and Atlantis raised an offer to acquire HireRight Holdings Corp (HRT), which is an employee screening company. In response to this, HireRight's stock surged 9.8% and is currently trading above $14 per share, the highest level since October 2022.
Key Questions Answered in this Report:
- How has the global employment screening services market performed so far and how will it perform in the coming years?
- What has been the impact of COVID-19 on the global employment screening services market?
- What are the key regional markets?
- What is the breakup of the market based on the service?
- What is the breakup of the market based on the organization size?
- What is the breakup of the market based on the application?
- What are the various stages in the value chain of the industry?
- What are the key driving factors and challenges in the industry?
- What is the structure of the global employment screening services market and who are the key players?
- What is the degree of competition in the industry?
Table of Contents
1 Preface3 Executive Summary11 Value Chain Analysis13 Price Analysis
2 Scope and Methodology
4 Introduction
5 Global Employment Screening Services Market
6 Market Breakup by Service
7 Market Breakup by Organization Size
8 Market Breakup by Application
9 Market Breakup by Region
10 SWOT Analysis
12 Porters Five Forces Analysis
14 Competitive Landscape
List of Figures
List of Tables
Companies Mentioned
- A-Check America Inc
- ADP Inc.
- Capita PLC
- CareerBuilder LLC
- Experian plc
- First Advantage
- HireRight LLC
- Insperity
- Paychex Inc.
- Paycor Inc.
- REED
- Sterling
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 144 |
| Published | August 2024 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value ( USD | $ 5.7 Billion |
| Forecasted Market Value ( USD | $ 11 Billion |
| Compound Annual Growth Rate | 7.6% |
| Regions Covered | Global |
| No. of Companies Mentioned | 12 |
