Employment Screening Services Market
Increase in Demand for Background Checks Drives Employment Screening Services Market Growth
As businesses face growing risks related to fraud, compliance, and workplace safety, the need for background checks is rising across various industries. Companies are using background checks to reduce the risk of employee fraud, theft, and other harmful behaviors. Workplace fraud can cost businesses billions annually. According to the report of the First Advantage, in 2022, of the 61% of discrepancies detected via background checks, 87% were within employment and academic verifications. Most discrepancies appear in manufacturing, staffing, and business services. 11.2% of employment discrepancies and 8.6% of education discrepancies are due to incorrect dates. As a result, firms are relying more on screening services (background checks) to verify the legitimacy of job candidates’ qualifications, past employment, criminal records, and financial integrity, preventing fraud before it happens.
The Professional Background Screening Association (PBSA) reports that employers are investing in background screening globally. 46% of employers plan to increase their investment in background checks in the next 12 months. Pre-employment screening helps reduce employee turnover by up to 35%. The education sector conducts background checks on 75% of new hires. 37% of employers have reconsidered a candidate based on positive information found in a background check. The retail industry spends an average of US$ 1,500 per candidate on background checks. 42% of employers have re-evaluated a candidate due to negative information found in a background check. 23% of employers have experienced increased workplace violence due to inadequate background screening. 63% of employers conduct ongoing or continuous background checks on employees. Employment background screening creates a positive return on investment of up to 409% for businesses. Thus, the increase in demand for background checks is creating consistent growth in the employment screening services market.
Employment Screening Services Market: Industry Overview
The employment screening services market is segmented into service, application, and organization size. Based on service, the employment screening services market is segmented into background screening, verification, and medical and drug testing. In terms of organization size, the employment screening services market is segmented into small and medium-sized enterprises and large enterprises. Based on application, the market is segmented into IT and telecom, BFSI, government agencies, travel and hospitality, manufacturing, retail, healthcare, and others.
In terms of revenue, North America dominated the employment screening services market share, followed by Europe and APAC. The employment screening services market in North America is subsegmented into the US, Canada, and Mexico. The US is anticipated to hold the largest employment screening services market share by 2031. The US government has implemented stringent rules and regulations to boost employment screening practices to employ well-suited employees. The US has a higher employment rate than other countries in the region. Also, the discrepancy rate among job applicants is high. According to the American Psychological Association, discrepancies or misinterpretations are reported in more than 50% of job applications. According to The Sentencing Project 2022, one in three Americans (approximately 70 to 100 million) have criminal records. As per StandOut CV LTD, in 2022, ~42.6 million Americans admitted to having lied on their resume at least once. To tackle this trend and reduce the number of fraudulent job applications, several large enterprises and SMEs have implemented employment screening services in their HR domain. For instance, according to the Professional Background Screening Association (PBSA) report 2023, 95% of US employers conduct employee background screening, and 77% of US employers have a documented background screening policy.
The US has a significantly huge transportation industry that employs a vast number of candidates every year. Scrutinizing every candidate is a must-to-do practice, as several incidences of fake documents in the past years have negatively impacted various transportation companies in the country. In 2023, US companies added more jobs than expected, featuring constant labor demand. According to the US Bureau of Labor Statistics Current Employment Survey (CES), in 2023, the healthcare industry accounted for 10.8% of the US workforce. Healthcare professionals in the US report more workplace violence injuries than in other industries. Negligence in the medical industry is not considered a minor factor. To reduce workplace violence, employers in the healthcare sector have already initiated thorough background screening for recruits using employment screening services.
Employment Screening Services Market: Competitive Landscape and Key Developments
Acuity International; HireRight LLC; ADP, Inc.; Pinkerton Consulting and Investigations Inc; GoodHire; Capita Plc; KPMG Assurance and Consulting Services LLP; Verity Screening Solutions; ezyHire; Triton Inc; Revealbackground.com; First Advantage; Zeremark; DataFlow Group; Cisive; Accurate Background, LLC; Reed Group; AuthBridge; Paychex, Inc.; and Insperity Inc are among the leading players profiled in the employment screening services market report. Several other essential market players were analyzed for a holistic view of the market and its ecosystem. The employment screening services market report provides detailed market insights, which help the key players strategize their market growth. As per the company press releases, below are a few recent key developments:
- Accurate Background, the largest privately held global provider of compliant background checks, drug and health screening, and employment monitoring solutions, announced its plans to release a new mobile-first drug and health screening experience designed to create a better candidate experience.
(Source: Accurate Background, Press Release, April 2024)
- AuthBridge announced a new and improved version of iBRIDGE. iBRIDGE 2.0 is the next-gen background verification platform that will enable companies with seamless candidate onboarding and verification experiences for new-age talent. With this new product launch, clients of AuthBridge will be able to activate candidate verifications in seconds and deep dive into a candidate’s documentation status with a single click.
(Source: AuthBridge, Press Release, January 2023)
