Employment Screening Services Market 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) : Global Opportunity Analysis and Industry Forecast, 2024-2032
Employment Screening Services Market
The 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.
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 ReviewThe 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 FindingsOn 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 AnalysisThe 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.
Key Market SegmentsBy ServicesCriminal Background Checks
Education and Employment Verification
Credit History Checks
Drug and Health Screening
Others
By ApplicationHealthcare
IT/Technology/Media
Financial Services
Staffing
Retail
Industrial
Travel/Hospitality
Government/Education
Transportation
Others
By RegionNorth 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
Key Market Players
ADP LLC
Capita PLC
CareerBuilder LLC
Experian plc
First Advantage
HireRight LLC
Insperity Inc.
Paychex, Inc.
Paycor, Inc.
REED
Sterling Talent Solutions
Accurate