Employment Screening Services Market 2030 - Size and Share

Employment Screening Services Market Size and Forecast (2020 - 2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Services [Background Check (Credit Check and Criminal Record), Verification (Qualification, Employment History Verification, Reference, and Others), and Medical and Drug Testing], Application (IT and Telecom, BFSI, Government Agencies, Travel and Hospitality, Manufacturing, Retail, Healthcare, and Others), Organization Size (SMEs and Large Enterprises)

Publication Month : Mar 2024

  • Report Code : TIPTE100000748
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 223
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[Research Report] The employment screening services market was valued at US$ 5.38 billion in 2022 and is expected to reach US$ 12.62 billion by 2030; it is estimated to record a CAGR of 11.2% from 2022 to 2030.

Analyst Perspective:

The industrial sector is experiencing high growth in countries such as India, Singapore, and Argentina, which can accelerate the employment screening services market growth. In March 2023, the Singapore Ministry of Manpower announced that employers must submit third-party verification proof for applicants with diploma-level qualifications and above to authenticate education qualifications. Many industries are currently stimulated by the candidate-driven employment market, wherein companies are keen to decrease the time-to-hire ratios. Hiring delays impact organizations in terms of time and cost. Companies these days are competing for the best candidates and, therefore, are putting more importance on crafting a positive onboarding experience, which also includes the background screening process of employees. From the demand side perspective, the employee screening process significantly reduces time and cost for the organization. By opting for employment screening services, organizations can save time in the long run as these services offer them clarity on responsibilities that should be taken to ensure the appropriate candidates are hired in the right way, which, in turn, increases work quality and efficiency. The growing demand for time-efficient selection systems, owing to the increasing number of job applicants, is contributing to the growing employment screening services market size. The integration of big data technology is further expected to create new opportunities for the employment screening services market during the forecast period. The demand for enterprise-level software and databases and the adoption of blockchain and other advanced technologies in the employee screening industry are expected to bring new employment screening services market trends in the coming years.

Employment Screening Services Market Overview:

The employment screening services market is a crucial part of the recruitment process. As a result, small and medium enterprises (SMEs) and large companies are investing significant amounts in employee screening and verification processes. Several companies are gradually moving from an in-house verification process to more reliable third-party vendors. These vendors offer pre-hiring and post-hiring screening services. However, appointing a third party for these screening processes makes employers vulnerable to data breaches. Therefore, enterprises are becoming highly conscious of the security of employee information and regulatory concerns related to the same. Moreover, previous cases of employee data breach concerns compel end users to invest more in protecting employee data. Players operating in the employment screening services market in the US and Europe are required to show their data breach protection and information security capabilities to enter and sustain the market. They are also required to demonstrate compliance with domestic and international privacy laws.

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Employment Screening Services Market: Strategic Insights

employment-screening-services-market
Market Size Value inUS$ 5.38 billion in 2022
Market Size Value byUS$ 12.62 billion by 2030
Growth rateCAGR of 11.2% from 2022 to 2030
Forecast Period2022-2030
Base Year2022
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Employment Screening Services Market Driver:

Increase in Job Immigrants Amid Globalization Drives Employment Screening Services Market

In globalization, highly advanced countries have experienced a large influx of job immigrants. According to the Migration Data Portal, there were 276.5 million international migrant workers in the world in 2020. There has been an increased influx of immigrants in low-skilled and highly professional jobs in the US, the UK, Germany, Canada, and other developed countries. The increased number of mobile workforce and job immigrants due to globalization, as well as the growing need to reduce fraudulent activity by applicants, are among the factors driving the demand for background screening by various organizations, boosting the growth of the employment screening services market. There are notable job opportunities for immigrants in the private sector, textile, apparel, and leather manufacturing; agriculture; information technology, computers, and other electronics; and administrative and support services sectors. According to US Census data, immigration surged in 2022, with the US experiencing its largest single-year gain in immigrants since 2010. About 1 million people immigrated to the US in 2022, up from a recent low of 376,000 persons in 2021. Malicious immigrants may pose a risk to an organization's security and, eventually, to a country. As a result, countries offering job opportunities have laid down various regulations and prerequisites for job applicants.

A survey conducted by the Society for Human Resource Management (SHRM) has identified a need for a comprehensive employment screening service for job immigrants because of several factors. These factors include the focus on security post-9/11 incident, the rise in the number of terrorist activities worldwide, legislation or modifications rolled out by newly appointed governments, availability of technologically advanced solutions for quicker and efficient background investigations, a surge in the frequency of falsification of credentials by applicants, and growing competition among applicants due to the scarcity of jobs post-recession. Thus, a tremendous increase in the number of job immigrants, as well as a rise in fraudulent activities by applicants, bolsters the demand for a thorough background check during the candidate screening process, thereby propelling the employment screening services market growth.

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Employment Screening Services Market Report Segmentation and Scope:

The employment screening services market is segmented on the basis of services, application, organization size, and geography. The employment screening services market, by service, is segmented into background screening, verification, and medical and drug testing. Based on application, the market is segmented into IT and telecom, BFSI, government agencies, travel and hospitality, manufacturing, retail, healthcare, and others. By organization size, the market is segmented into large enterprises and SMEs. The scope of the employment screening services market report is primarily segmented into North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America).

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Employment Screening Services Market Segmental Analysis:

Based on services, the employment screening services market has been segmented into background screening, verification, and medical and drug testing. In terms of revenue, the verification segment held the largest employment screening services market share in 2022. Several applicants provide false information regarding their qualifications and work experience by making minor changes or even outrageous misrepresentations. According to the World Street Journal, ~34% of job applications globally contain fake information. Verification service providers ease the employer's liability to scrutinize every piece of information provided by candidates. According to the Association of Certified Fraud Examiners, false information provided by candidates results in huge losses to several companies. The costs incurred due to false information on resumes amounted to ~US$ 600 billion in the past few years in North America. Verification services include investigating the candidates' employment histories, professional licenses, and educational degrees. The employment screening services market for the verification segment is further segmented into qualification, employment history, reference, and others. Candidature discrepancies are more common in Asia Pacific countries such as Singapore, Hong Kong, the Philippines, and Malaysia. The electronic auditing and verification service providers have a lucrative opportunity to grow their business by providing advanced solutions to several companies operating in these countries.

Employment Screening Services Market Regional Analysis:

The North America employment screening services market is segmented into the US, Canada, and Mexico. In terms of revenue, the US dominated the employment screening services market share. Employers across the US consider background checks as an integral part of their recruitment process. As of data published by the Professional Background Screening Association (PBSA) in July 2023, ~95% of US employers conduct employee background screening and 77% of US employers have a documented background screening policy; criminal background checks are the common type of background check, as stated by 94% of respondents. The US has the highest number of immigrants looking for employment, mainly citizens from India, Australia, Canada, China, and the UK. There is a rising demand for employment screening services in the US to scrutinize and analyze migrant applicants' background details, such as educational qualifications, criminal records, medical tests, credit records, and candidate history verification. Drug abusers' percentage is comparatively high among American job seekers, which compels companies to adopt employment screening service suites including medical tests. All the above-mentioned factors are anticipated to contribute to the employment screening services market growth in North America from 2022 to 2030.

Key Player Analysis:

A-Check America, Inc.; HireRight LLC; Pinkerton Corporate Risk Management; Capita Plc; Verity Screening Solutions LLC; Triton; First Advantage; DataFlow Group; Sterling Talent Solutions; Accurate Background; AuthBridge; Insperity; and GoodHire are among the key players profiled in the employment screening services market. Several other major market players were studied and analyzed during this market research study to get a holistic view of the market and its ecosystem. The employment screening services market analysis provides detailed market insights, which help the key players strategize their growth.

Employment Screening Services Market Recent Developments:

The employment screening services market forecast can help stakeholders in this marketplace plan their growth strategies. Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the market. A few recent key market developments are listed below:

  • In March 2023, Accurate Background announced its acquisition of VerifyNow Pty Ltd, an employment screening provider in Australia. This move is part of Accurate's global strategy to expand its international compliance-driven employment screening solutions portfolio. VerifyNow will continue to operate independently under its current leadership.
  • In March 2023, Apploi, a hiring platform for healthcare employers, partnered with Accurate Background, a global provider of background checks and screening solutions. The partnership aims to provide healthcare employers with a more efficient and informed hiring process using Accurate's screening solutions to make compliant and timely hiring decisions.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Services, Application, Organization Size

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

This text is related
to country scope.

Frequently Asked Questions


What are the driving factors impacting the employment screening services market?

Demand for time-efficient selection systems owing to rising number of job applicants, increase in job immigrants amid globalization and need to mitigate risks associated with fraudulent activities of applicants are driving factors of employment screening services market.

What are the future trends of the employment screening services market?

Demand for enterprise-level software and database and adoption of blockchain and other advanced technologies in employee screening is expected to set the future trend for the employment screening services market in the coming years.

Which key players hold the major market share of the employment screening services market?

The key players holding majority shares in the employment screening services market include Capita plc., Pinkerton Corporate Risk Management, Talent Solutions (Sterling), HireRight, LLC, and First Advantage.

Which is the leading service segment in the employment screening services market?

Verification segment led the employment screening services market with a significant share in 2022 and medical & drug testing segment is expected to grow with the highest CAGR.

What will be the employment screening services market size by 2030?

The employment screening services market is expected to reach US$ 12.62 billion by 2030.

What is the estimated market size for the employment screening services market in 2022?

The Employment screening services market was estimated to be valued at US$ 5.38 billion in 2022 and is projected to reach US$ 12.62 billion by 2030; it is expected to grow at a CAGR of 11.2% during the forecast period.

Which is the fastest-growing region in employment screening services market?

Asia Pacific is anticipated to grow with the highest CAGR over the forecast period.

The List of Companies - Employment Screening Services Market

  1. A-Check America, Inc.
  2. HireRight LLC
  3. Pinkerton Corporate Risk Management
  4. Capita Plc
  5. Verity Screening Solutions LLC
  6. Triton
  7. First Advantage
  8. DataFlow Group
  9. Sterling Talent Solutions
  10. Accurate Background
  11. AuthBridge
  12. Insperity
  13. GoodHire

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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