Employment Screening Services Market to Escalate to $4.8 billion by 2023
CEO Insights team , Nikhil Michael, Correspondent, CEO Insights
According to the study, the increasing number of data thefts & frauds has transformed employment screening into a crucial step in the recruitment process. Also, recent years have witnessed the growing popularity of these services among businesses & organizations, as employers search for ways to make informed hiring decisions & ensuring safety in workplaces.
In 2016, the global employment screening industry was valued at $2.8 billion, with banks and financial institutions as the most significant users. Employment screening services include gathering job, educational, criminal, financial, and other records about an individual for recruitment purposes. Criminal background checks, education & job history verifications were the most-used services that year with 55 percent market share.
Compared to 2016 data, the value of the global employment screening services market is expected to grow by nearly 70 percent in the next three years. Furthermore, statistics indicate that criminal background checks will stay as the highest revenue contributor. However, education and employment authentication are expected to grow at the highest CAGR of 9.0 percent from 2017 to 2022.
Data theft, financial loss, computer hacking, or hiring undocumented workers are some of the most ordinary
With the increasing number of frauds, the demand for employment screening services among American employers is constantly growing
reasons why companies conduct employee and non-employee background checks. In 2019, over 70 percent of organizations using employment screening services uncovered issues they wouldn’t have caught otherwise.
According to the survey, nearly 75 percent of them discovered criminal convictions during background checks, a 20 percent increase compared to the previous year. The data shows that organizations regularly discover discrepancies in drug testing, previous employment, education, and motor vehicle records, while misrepresentation is present at every job level.
As per geographical analysis, North America holds the largest share of the global employment screening services market. In 2018, the US Federal Trade Commission received 444,602 reports of identity theft. More than 67,000 reports came from people who said their personal data was abused for employment or tax-related fraud. The statistics show employment deceptions were the third most common type of report that year.
With the increasing number of frauds, the demand for employment screening services among American employers is constantly growing. According to statistics, in 2019, nearly 70 percent of the US companies performed background checks, and around 80 percent of them scanned criminal records of their potential candidates.
With 76 percent of businesses expecting their workforce size to increase this year, the European employment screening services market is also forecast to witness steady growth.