“Global Employment Screening Services Market to reach a market value of 14.3 Billion by 2031 growing at a CAGR of 10.9%”
The Global Employment Screening Services Market size is expected to reach $14.3 billion by 2031, rising at a market growth of 10.9% CAGR during the forecast period.
The retail industry’s high employee turnover and rapid hiring processes drive the need for employment screening services. With a focus on ensuring customer-facing employees are trustworthy and reliable, retailers increasingly invest in background checks. Seasonal hiring surges and the growth of e-commerce further amplify the demand for efficient and scalable screening solutions, contributing to this segment’s promising revenue share. Thus, the retail segment recorded 7% revenue share in the market in 2023.
Employment screening services are pivotal in addressing these risks by conducting thorough background checks on prospective employees. These checks include verifying educational qualifications, previous employment history, criminal records, and other critical details. Employers can build a workforce aligning with their organizational values and goals by hiring only trustworthy and qualified candidates. Additionally, as organizations deal with increasing job applications, manual screening methods have become inefficient and prone to errors. AI and automation address these challenges by streamlining the evaluation process, ensuring faster and more accurate results. Thus, as organizations continue to embrace digital transformation, the adoption of employment screening services will also increase.
However, employment screening services involve collecting, storing, and processing highly sensitive personal information, including criminal records, financial histories, and educational qualifications. This makes the industry highly susceptible to data privacy and security concerns. Stringent data protection regulations, such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States, impose significant compliance obligations on companies offering these services. Consequently, stringent data privacy regulations remain a key factor hampering the growth of the employment screening services market.
Based on application, the market is classified into healthcare, IT/technology/media, financial services, staffing, retail, industrial, travel/hospitality, government/education, transportation, and others. The healthcare segment garnered 24% revenue share in the market in 2023. Due to the necessity of adhering to stringent industry regulations and ensuring patient safety, the healthcare sector generates the most demand for employment screening services.
On the basis of enterprise size, the market is bifurcated into large enterprises and small & medium-sized enterprises. The small & medium-sized enterprises segment garnered 37% revenue share in the market in 2023. Small and medium-sized enterprises (SMEs) increasingly rely on employment screening services as they recognize the importance of building trustworthy and reliable teams. Despite tighter budgets, SMEs seek cost-effective solutions to mitigate hiring risks and safeguard their reputation.
By services, the market is divided into criminal background checks, education & employment verification, drug & health screening, credit history checks, and others. The criminal background checks segment procured 41% revenue share in the market in 2023. Employers prioritize these checks to mitigate risks associated with hiring individuals who may threaten colleagues, customers, or organizational assets.
Free Valuable Insights: Global Employment Screening Services Market size to reach USD 14.3 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment witnessed 30% revenue share in the market in 2023. The Europe region holds a substantial revenue share in the employment screening services market, driven by increasing regulatory requirements and a strong emphasis on data protection and compliance.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 6.3 Billion |
| Market size forecast in 2031 | USD 14.3 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 10.9% from 2024 to 2031 |
| Number of Pages | 262 |
| Tables | 430 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Application, Enterprise Size, Services, Region |
| Country scope |
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| Companies Included | HireRight LLC, First Advantage Corporation, Insperity Services, L.P., Checkr, Inc., Experian Information Solutions, Inc., Kroll, LLC, ADP, Inc., Neeyamo, Verifile Limited, and AuthBridge Research Services Private Limited |
By Application
By Enterprise Size
By Services
By Geography
This Market size is expected to reach $14.3 billion by 2031.
Growing Need for Risk Mitigation are driving the Market in coming years, however, Stringent Data Privacy Regulations restraints the growth of the Market.
HireRight LLC, First Advantage Corporation, Insperity Services, L.P., Checkr, Inc., Experian Information Solutions, Inc., Kroll, LLC, ADP, Inc., Neeyamo, Verifile Limited, and AuthBridge Research Services Private Limited
The expected CAGR of this Market is 10.9% from 2024 to 2031.
The Large Enterprises segment is leading the Market by Enterprise Size in 2023; thereby, achieving a market value of $8.8 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $5.3 billion by 2031.
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