Employment Screening Services Market to Top $4.8bn by 2023

 

The increasing number of data thefts and frauds has transformed employment screening into a crucial step in the recruitment process. Recent years have witnessed the growing popularity of these services among businesses and organizations, as employers search for a way to make informed hiring decisions and ensure safety in workplaces.

According to data gathered by PreciseSecurity.com, the global employment screening services market is expected to reach $4.8bn value by 2023, growing by 7.5% year-on-year.

Education and Criminal Background Checks are the Most-used Services

Employment screening services include gathering job, educational, criminal, financial, and other records about an individual for recruitment purposes.

In 2016, the global employment screening industry was valued at $2.8bn, with banks and financial institutions as the most significant users. Criminal background checks, education and job history verifications were the most-used services that year with 55% market share.

Compared to 2016 data, the value of the global employment screening services market is expected to grow by nearly 70% in the next three years. The statistics indicate criminal background checks will stay the highest revenue contributor. However, education and employment authentication are expected to grow at the highest CAGR of 9.0% from 2017 to 2022.

More than 70% of Businesses Uncovered Issues by Using Employment Screening

Data theft, financial loss, computer hacking, or hiring undocumented workers are some of the most ordinary reasons why companies conduct employee and non-employee background checks.

In 2019, more than 70% of organizations using employment screening services uncovered issues they wouldn’t have caught otherwise, revealed the Hire Right 2019 employment screening benchmark report.

According to the survey, nearly 75% of them discovered criminal convictions during background checks, a 20% increase compared to the year before. The data showed organizations regularly discovered discrepancies in drug testing, previous employment, education, and motor vehicle records, while misrepresentation is present at every job level.

US and Canada as the Leading Markets

Analyzed by geography, 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% of the US companies performed background checks, and around 80% of them scanned criminal records of their potential candidates.

With 76% of businesses expecting their workforce size to increase this year, the European employment screening services market is also forecast to witness steady growth.

The full story can be read here: https://www.precisesecurity.com/articles/employment-screening-services-market-to-top-4-8bn-by-2023/

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