ID: MRFR/ICT/4566-CR | March 2020 | Region: Global | 100 pages
Employment Screening Services Market was valued at USD 2,972.0 Million in 2018 and is estimated to surpass USD 4,914.6 Million in 2025 at a CAGR of 7.8% during the forecast period 2019–2025.
Employment screening is the process of identifying and verifying the past records of an individual, often prior to their employment. The verification of any individual based on their resume becomes challenging since not all employees provide accurate data and could exaggerate or forge personal details. Employment screening software helps the employer to fulfill their compliance, regulatory, and legal requirements by setting an objective benchmark for recruiting employees; therefore, minimizing the risks associated with the selection of fraudulent employees. Employment screening services include several types of background verification checks, such as contractor screening, drug and alcohol screening, sex offender checks, motor vehicle checks, employment eligibility verifications, fingerprint screening, global screening, medical compliance, resident monitoring, and rental payment history.
Employment screening helps employers authenticate individuals before employing them in their organizations. These services assure employers that the details provided to them by the individual are accurate, and the experience and qualifications mentioned in the resume are justified. The screening of employees helps in maintaining the safety and security of the organization as well as abiding by regulatory compliance. The global market is highly competitive, owing to several factors including urbanization, well-developed infrastructures, and the presence of multinational companies.
The major factors attributing to the growth of the employment screening services market include increasing cases regarding illegal activities and concerns regarding data theft and data loss. In addition to this, an increasing number of startups and small and medium enterprises are expected to create opportunities for employment screening service providers to develop tools for providing accurate background checks for new employees. However, the growth of the employment screening services market might be hindered due to discrepancies in the work process.
As per the study conducted by MRFR, the employment screening services market has been segmented into service type and end user and region. Based on the service type, the employment screening services market has been segmented into criminal background check services, education and employment verification services, credit history checks, and drug & health screening. Among these services, the criminal background check service is expected to dominate the market by the end of the forecast period. On the contrary, the education and employment verification segment of employment screening services market is estimated to witness the fastest growth with a CAGR of 9.2% during the forecast period. On the basis of end user, the employment screening services market has been segmented into BFSI, government, information technology, and industrial. Out of these end users, the BFSI segment dominated the market in 2018 and is estimated to reach USD 1,517.6 million by the end of the forecast period. The information technology segment of employment screening services is expected to witness the fastest growth with a CAGR of 8.9% during the forecast period 2019–2025.
Globally, the employment screening services market has been categorized into five different regions—North America, Europe, Asia-Pacific, and the rest of the world. North America was leading the employment screening services market in 2017. Asia-Pacific is expected to be the fastest-growing market from 2019 to 2025, whereas Europe is expected to be at the second spot in the employment screening services market in terms of market share during the assessment period.
The companies studied to analyze the Global Employment Screening Services Market included Employment Screening Services, Inc. (US), Automatic Data Processing, Inc. (US), Employment Background Investigations, Inc (US), CareerBuilder Employment Screening, LLC (US), Sentinel Background Checks (US), First Advantage Corporation (US), HireRight, Inc. (US), Paycor, Inc. (US), Capita PLC (UK), Experian Plc. (UK), Insperity, Inc. (US), InfoMart, Inc. (US), Paychex, Inc. (US), GoodHire (US), Peopletrail (US), BackgroundReport.com (US), Accurate Now (US), and Sterling (US).
The employment screening services market is expected to attain significant growth owing to the wide-scale adoption of these solutions and services. The number of competitors offering employment screening solutions in the market is high due to which the market is expected to witness competition among the existing players. The customer loyalty towards the existing market players is high as these players offer user-friendly and highly efficient employment screening systems and support services to the end-users. Therefore, for the players to stay relevant in the market, they have to offer best-in-class and innovative screening solutions to their clients. Therefore, the intensity of rivalry is expected to be high.
Frequently Asked Questions (FAQ) :
An increase in fraudulent activities and submission of fake documents has been observed which is supposed to drive the growth in demand for employment screening services.
By 2023, the employment screening services market is expected to strike 8% CAGR.
Employment Screening Services, Inc (U.S.), Capita plc (U.K), Automatic Data Processing, Inc (U.S.), CareerBuilder (U.S.), First Advantage Corporation (U.S.), Experian plc (Ireland), HireRight, Inc (U.S.), Paycor, Inc (U.S.), Insperity, Inc (U.S.), Paychex, Inc (U.S.), and Reed (U.K) are some of the major contributors to market growth.
The valuation of the employment screening services market is anticipated to be USD 4 Bn.
The end-user segments of employment screening services market are industrial, banking and financial services institute, information technology, government, and others.