A new report finds that the global employment screening services market, valued at $2,939.8 million in 2016, is projected to reach $4,892.3 million by 2023, growing at a compound annual growth rate (CAGR) of 7.5 percent from 2017 to 2022. Criminal background checks as a service is estimated to be the highest revenue contributor during the forecast period.
The report, from Allied Market Research, the full-service market research and business-consulting arm of Allied Analytics, defines employment screening as reliability checks undertaken by different organizations before an employee is hired into an organization. Employers use this service to consolidate an array of employment, financial, criminal, educational, and other records about an individual for recruitment purpose.
The firm’s research finds that the growth of the employment screening services market is expected to be supplemented by increase in availability and accessibility of employment screening services in developed as well as developing economies, advantages of employment screening services, and enhanced regulatory compliance associated with these services. However, at the same time, risks associated with the safeguarding and disposal of information collected during the hiring process are expected to impede market growth.
Where the Growth Is
In the service segment, criminal background checks and education and employment verification collectively accounted for nearly 55.3 percent of the market share in 2016. The banking and financial sector represented one-third of the global employment screening services market in 2016.
Going forward, in the verification segment, use by the education and employment sector is projected to grow at the highest CAGR, 9.0 percent, from 2017 to 2023, as a result of its high necessity with respect to hiring new employees in an organization.
Meanwhile, in the applications segment, use by government agencies is expected to grow at the highest rate, 8.9 percent. The adoption of employment screening in these agencies is expected to increase substantially, because individuals recruited for positions are expected to be as responsible and accountable for their work as the institution itself.
Other Key Findings
- The criminal background checks service segment generated the highest revenue in 2016, and is expected to continue its dominance in the near future.
- North America dominated the global employment screening services market, and is projected to grow by 6.8 percent.
- Asia-Pacific is expected to witness the highest growth rate during the forecast period.