Employment Screening Services Market by Services (Education & Employment Verification, Drug & Health Screening, Credit History Checks, Criminal Background Checks, and Others), Applications (Healthcare, Information Technology/Media, Financial Services, Staffing, Retail, Industrial, Travel, Hospitality, Government, Education, Transportation, and Others), and Regions (Asia Pacific, North America, Europe, Latin America, and Middle East & Africa) Forecasts, 2021-2028

The global employment screening services market was estimated at USD 5 billion in 2020 and is anticipated to expand at substantial CAGR during the forecast period, between 2021 and 2028. Employment screening refers to background checks and investigations into the applicants to ascertain that they are the right fir for a certain job. Screening services help in the authentication of the candidates to safeguard the organization from any deceitful applicants.  The risks such as thefts, counterfeiting, criminal activities and workplace violence can be avoided by employment screening as it helps in understanding the applicants’ personality and overall historic background. Employment screening includes drug tests, credit and reference checks, and social media background checks

Market Trends, Drivers, Restraints, and Opportunities

• Employment screening helps organizations to identify counterfeits and misinterpreted information at an early stage and prevent any risks and hiring costs, which primarily drives the market.
• Rising corporate concerns about confidential data loss and illegal activities compels companies to run employment screening, which is estimated to propel the market growth.
• Growing focus on enhanced quality, full disclosure of applicants, and regulatory amenability have increased the demand for employment screening services, thereby surging the market.
• Increasing technological risks and discrimination among applicants is estimated to negatively impact the market.
• Developing economies such as India, China, and Japan are expected to expand the opportunities for employment screening owing to a large pool of candidates and growing importance of background and reference checks.

Scope of the report

Global Employment Screening Market Segment Insights

High number of illegal activities drive the criminal background checks segment

Based on services, the employment screening services market can be classified as education & employment verification, drug & health screening, credit history checks, criminal background checks, and others. The criminal background check segment accounted for a significant share in 2020 and is projected to expand at a robust growth rate during the forecast period. Rising criminal cases in corporate organizations such as counterfeiting, confidential data leaks, and violence compelled various corporations to run criminal background checks on their applicants and prospective employees to ascertain that they are mentally sound and have no history of any crime. This protects the firm from any financial and legal trouble and also reduced the vulnerability of the organisation. In order to safeguard the reputation and assets of the organizations, it was imperative for the HR team or outsourced employment screening services to run background checks. The education and employment verification segment is expected to expand at a rapid pace as it ascertains the qualifications of the prospective employee to verify that they are the right fit for the job and that they can perform the required tasks with the right skill set.

COVID-19 pandemic caused a surge in employment screening services in the healthcare segment

On the basis of applications, the market can be segmented into healthcare, information technology/media, financial services, staffing, retail, industrial, travel, hospitality, government, education, transportation, and others. The spread of COVID-19 resulted in employment screening activities in the healthcare segment, which has caused the healthcare segment to register a significant CAGR in 2020. Drug testing and educational qualifications were screened in the medical sector to ascertain that the medical staff was fully skilled and had the necessary education to treat the patients. Additionally, the stringent regulations regarding recruitment in the healthcare segment requires strict employment screening, which further causes growth in the healthcare segment. The most important test conducted was the drug test as failure in this test can have serious consequences for the recruits.

Rise of IT hubs in North America propels the market

In terms of regions, the global employment screening services market can be categorized as North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America held a substantial market share in 2020 owing to rising number of IT hubs and overall employment. This resulted in a surge in demand for employment screening in the region, thereby driving the market. The market in Asia Pacific is expected to grow at a rapid rate due to urbanization and rise in population. Illicit drug problems and increase in criminal activities drive the drug test segment and criminal background check segment respectively, in the region.

Segments

Segments Covered in the Report

By Services

• Education & Employment Verification
• Drug & Health Screening
• Credit History Checks
• Criminal Background Checks
• Others

By Applications

• Healthcare
• Information Technology/Media
• Financial Services
• Staffing
• Retail
• Industrial
• Travel
• Hospitality
• Government
• Education
• Transportation
• Others

By Regions

• North America
• Europe
• Latin America
• Asia Pacific
• Middle East & Africa

Competitive Landscape

Key players in the global employment screening market include HireRight LLC; Capita PLC; Experian; First Advantage; Insperity; CareerBuilder LLC; Paychex Inc.; Paycor; Inc.; ADP LLC; REED; and Sterling. These players are widely engaged in various business development strategies including mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence and expand their consumer base globally.