Employment Screening Services Market Research, 2032
The global employment screening services market was valued at $6.3 billion in 2023, and is projected to reach $16.8 billion by 2032, growing at a CAGR of 11.1% from 2024 to 2032. The market is growing rapidly due to the increasing emphasis on hiring quality and compliance with regulatory standards. This growth is also driven by technological advancements in screening processes and the rising need for organizations to ensure a safe and productive workplace.
Market Introduction and Definition
Before making an employment offer to a candidate, hiring organizations have the ability to use employment screening services market size to learn more about their background. By doing this, the possibility of hiring someone who might not be a good fit for the business, or the role is decreased. These businesses provide a limited range of services, some of which include identity verification, drug testing, credit history verification, and background checks.
Key Findings
The employment screening services industry study covers 20 countries. The research includes a segment analysis of each country in terms of value ($Billion) for the projected period 2024-2033.
Several product literatures, industry releases, annual reports, and other such documents of major employment screening services industry participants along with authentic industry journals, associations' releases, and government websites have been reviewed for generating high-value industry insights.
The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions to achieve their most ambitious employment screening services market growth objectives.
Key Market Dynamics
The employment screening services market forecast is driven by various important aspects that highlight the importance of these services in contemporary labour management. The main force behind this change is the growing emphasis that businesses are putting on compliance and risk management. An increasing number of regulations are governing hiring practices; thus, companies are utilizing comprehensive screening solutions to ensure they meet legal requirements and shield themselves from potential risks.
Furthermore, the need for background checks on foreign applicants has increased due to the rise in globalization and cross-border hiring. Verifying the qualifications and backgrounds of applicants from varied backgrounds becomes increasingly important as firms expand abroad. Concerns about security and sensitive data protection, especially in sectors that deal with proprietary data or private client information, are offering lucrative employment screening services market opportunity for growth.
Furthermore, the continuous threat of internal misbehaviour and fraud by employees is highlighting the importance of thorough pre-employment screening. Employers are using stringent screening procedures to reduce these dangers related to false resumes, qualification falsification, and concealed criminal records.
Parent Market Analysis
The recruitment industry, over the years, has experienced a rapid shift and adopted online recruitment processes for filling in the vacancies across organizations. Due to the growing usage of artificial intelligence, robotic process automation, and virtual recruiting, the market for online recruitment software is anticipated to expand significantly. Furthermore, increase in remote interviews is anticipated to present a profitable prospect for market expansion during the projected period. According to the analysis of Allied Market Research, the global online recruitment market software is expected to $4 billion by 2032 growing with an CAGR of 8.6% over 2023 to 2032. Thus, the automation of the recruitment processes is also increasing the chances of recruiting fake or less efficient candidates. These factors are thereby influencing the rise in demand for employment screening services before pre-employment of candidates across hired roles.
Market Segmentation
The employment screening services market share is segmented on the basis of services, applications, and region. By services, the market is classified into criminal background checks, education & employment verification, credit history checks, drug & health screening, and others. The criminal background checks accounted for the highest share in the global employment screening services market in 2023. By application, the market is segmented into healthcare, IT/technology/media, financial services, staffing, retail, industrial, travel and hospitality, government and education, transportation, and others. The financial services segment accounted for the highest share in 2023 in the global employment screening services industry. By region, the market segmented into North America, Europe, Asia-Pacific, and LAMEA. The North America region accounted for the highest share in the market in 2023.
Regional/Country Employment Screening Services Market Outlook
The Asia-Pacific employment screening services market outlook is expected to grow with the highest CAGR during the forecast period. Leading providers of employment screening services are reaching out to businesses in China, India, and other Asian nations with their product lines. For example, First Advantage, a U.S.-based company, is well-established throughout Asia-Pacific. With more than 1, 000 employees, India ranks as the company's second-largest geographic location after the U.S. As a result, most employment screening businesses are growing by entering emerging countries. The Asia-Pacific region is witnessing surge in demand for employment background screening owing to rise in discrepancy rates and increase in the number of check types. In addition to implementing drug tests and pre-employment screenings in firms, Australia and China have mandated background checks for public sector employees. A few industrialized nations in the region, including South Korea, Taiwan, and Japan, exhibit the similar pattern. Employer screening is a routine practice for multinational corporations to maintain high worker productivity. In addition, a rise in government activities to safeguard the businesses' unique insights and a rise in the demand for sophisticated goods and services are expected to propel market expansion.
Industry Trends
In March 2023, Accurate announced its partnership with Apploi, a healthcare employee hiring platform. This partnership is intended to make informing hiring using Accurate services for the healthcare employers.
In December 2023, Zhaopin announced the launch of its new AI solution for employment screening and recruitment. This solution is expected to reduce the overall time for recruitment and screening processes for the company.
Competitive Landscape
The major players operating in the employment screening services market include ADP LLC, Capita PLC, CareerBuilder LLC, Experian, First Advantage, and HireRight LLC. Other players in the employment screening services market include Insperity, Paychex, Inc., Paycor, Inc., REED, Sterling Talent Solutions, Accurate, and others.
Recent Key Strategies and Developments
In April 2021, Premier Inc. granted HireRight, a pioneer in background screening services globally, a multi-year national contract. With this new arrangement, Premier members can now choose to benefit from pre-arranged terms and pricing for background check solutions and related services that Premier has negotiated.
In March 2023, Accurate announced the acquisition of VerifyNow Pty. Ltd, a background screening service provider operating in Australia. This acquisition is being done to expand the company geographic presence across the Asia-Pacific region.
Key Sources Referred
National Association of Professional Background Screeners (NAPBS)
Professional Background Screeners Association (PBSA)
The Society for Human Resource Management (SHRM)
Equal Employment Opportunity Commission (EEOC)
American Bar Association (ABA)
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the employment screening services market analysis from 2024 to 2032 to identify the prevailing employment screening services market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the employment screening services market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global employment screening services market trends, key players, market segments, application areas, and market growth strategies.
Employment Screening Services Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 16.8 Billion |
 Growth Rate | CAGR of 11.1% |
 Forecast period | 2024 - 2032 |
 Report Pages | 250 |
 By Services |
|
 By Appication |
|
 By Region |
|
 Key Market Players | Paychex, Inc., Sterling Talent Solutions, Capita PLC, HireRight LLC, ADP LLC, Paycor, Inc., Accurate, REED, Experian plc, Insperity Inc., CareerBuilder LLC, First Advantage |
Analyst Review
Employment screening is the process undertaken by background checking and employment screening providers to check the credibility of an employee before hiring; these services include consolidation, research, and data collection of an array of different verticals such as educational, employment history, credit history, criminal, financial and personal records about an individual for the purpose of evaluation for employment.
The growth of the employment screening services market is expected to be driven by factors such as enhanced quality of workforce, improved regulatory compliance with respect to employment, and advantages associated with employment screening. Furthermore, the emphasis of newer organizations and startups for background checking is expected to increase the demand for these services during the forecast period. Untapped potential of emerging markets, and increase in advancement in the information technology and human resources sectors are anticipated to provide lucrative opportunities for market growth.
An HR professional must be prepared to traverse very carefully between different employment practices and privacy laws to comply with different federal, state, and country level requirements when dealing with employment screening services. Hence, the technology risks associated with the employment screening data and discrimination concerns are key restraints that impede the market growth. At present, criminal background checks and education & employment verification institutes are the largest service segments of employment screening services market, followed by credit history checks, and drug & health screening.
The banking & financial sector dominated the employment screening services market; whereas, the government agencies segment is projected to grow at the highest growth rate throughout the forecast period. The implementation of technologically advanced employment screening services is highest in North America, owing to the increase in adoption and availability of these services in U.S., followed by Europe and Asia-Pacific.
The rising demand for digital and industry-specific employment screening services is the major trend in the global employment screening services market.
The financial services sector has the leading application of employment screening services in 2023.
North America is the largest regional market for the employment screening services market as of 2023.
The employment screening services market is expected to reach US$ 16.8 billion by 2032.
The top companies operating in the market include ADP LLC, Capita PLC, CareerBuilder LLC, Experian, First Advantage, HireRight LLC, Insperity, Paychex, Inc., Paycor, Inc., REED, Sterling Talent Solutions, and Accurate.
Loading Table Of Content...
