Employment Screening Services Industry: A Look at the Competitive Landscape and Growth Strategies

The Employment Screening Services Industry Employment Screening Services Industry is a crucial part of recruitment process, as a result, SMEs as well as large-size companies, these days are investing hefty amount in employee screening and verification process. Several companies are gradually moving from in-house verification process to more reliable third-party vendors. These vendors offer screening service for pre-hiring as well as post-hiring process. However, this increases the chances of data breach too. Therefore, the end-user enterprises are becoming highly conscious towards the employee information security and regulatory concerns. Previous cases of employee data breach concerns have compelled the end-user companies to become more concerned towards the protection of employee data. The players operating in US and Europe employment screening market are required to show their data breach protection and information security capabilities to enter and sustain in the market. Besides, they are also required to compliance with privacy laws on domestic and international level.

PINKERTON CORPORATE RISK MANAGEMENT, HIRERIGHT, LLC, A-CHECK AMERICA, INC., VERITY SCREENING SOLUTIONS LLC, CAPITA PLC. – PROMINENT MARKET PARTICIPANTS IN EMPLOYMENT SCREENING SERVICES INDUSTRY

There had been several alarming data breach incidents occurred in past years which has awaken the companies towards information security. For instance, Equifax, credit reporting agency massive data breach suffered entire US in September 2017. Further, Uber paid US$ 148 Mn for the settlement for a 2016 data breach incidence. As a result of this, several end-user companies became watchful towards their information security.

Further, looking at the demand side, the employee screening process significantly reduces the time consumption and cost of organization. Also, employment screening services save organization time in the long run by clarifying the responsibilities to take to ensure the appropriate candidate is hired in the right way which in turn increases efficiency and work quality, thereby driving its adoption. The employment screening services market is further flourishing due to the demand for time efficient selection systems owing to rising number of job applicants. Introduction of big data technology in this industry is expected to create new opportunities for the global employment screening services market during the forecasted period.

The 21st century has witnessed a huge influx of population in the urban cities of developed and developing economies in search of a better life. Higher standards of living, higher job opportunities, access to modern amenities and services are the few major factors that have contributed to the migration of rural population to the urban areas around the world. Developing economies witnessed a steady growth in the post-recession era, and thus, there was a rise in disposable incomes by consumers. According to the World Bank, worldwide, today, over 50% of the population lives in urban areas. By the year 2045, the world’s urban population would increase by 1.5 times to 6 Bn. As urbanization has increased and will continue to increase in the coming years, the need for the creation of jobs in urban areas would grow at full throttle. A competitive region enables its industries and firms to grow jobs, raise productivity, and increase incomes of citizens.

Big data refers to data collected from huge groups. The internet has been a one of the prime factors driving the big data application in employee screening market. Internet has made it easy for social networking sites, search engines, marketers, and other sources to collect huge amounts of information about employees. Information collected from big data can be used by companies to create employee wellness programs, improve their health care policies, and improve internal promotions. According to the American Statistical Association (ASA), 53% of the HR departments uses big data to help make strategic decisions for recruitment and selection and managing talent and performance.

Big Data offers merged information that shrinks unfairness in employment judgments and help employers make better decisions in recruitment, appraisal, and performance evaluations. Big Data, when paired with present advance techniques, can improve selection of right candidate, intensify the ability to recognize talent from cross-border, help overcome implicit and explicit biasness in the work area and raise equality in access to jobs. Big data brings with its huge opportunity in recruitment and employee screening process and can be one of the significant tools for employer to make decision.

The top five companies in the market are Pinkerton Corporate Risk Management, Hireright, Llc, A-Check America, Inc., Verity Screening Solutions Llc, Capita Plc. The above listing of key players is derived by considering multiple factors such as overall revenue, current well completion equipment and services portfolio, new product launches, market initiatives, investment in technology up-gradation, mergers & acquisitions, and other joint activities. A few of the important market initiatives and product developments from the industry are mentioned below: