Employment Screening Services Market is expected to reach US$ 9.88 Billion by 2031

Rise in Employee Fraudulent Activities to Fuel Employment Screening Services Market Growth During Forecast Period 

According to our latest study, "Employment Screening Services Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Services, Application, Organization Size, and Geography," the market was valued at US$ 5.82 billion in 2023 and is expected to reach US$ 9.88 billion by 2031; it is estimated to record a CAGR of 6.8% from 2023 to 2031. The report includes growth prospects owing to the current employment screening services market trends and their foreseeable impact during the forecast period.    

Frauds in the workplace can lead to significant financial, operational, and reputational damages for organizations, which makes thorough pre-employment screening a critical component of the hiring process. With the increase in job applications submitted online, there is a growing risk of identity fraud. People may provide fake credentials, falsify their resumes, or even steal another person's identity to secure employment. According to the report of the Association of Certified Fraud Examiners, Inc., in 2022, 39% of employees concealed thefts by creating fraudulent physical documents, 32% by altering physical documents, 28% by creating fraudulent electronic documents, 25% by changing electronic records, and 23% by destroying or withholding physical documents. Screening services perform critical identity verification checks to ensure that the candidate is who they claim to be.  

Employment Screening Services Market Analysis — by Geography

Source: The Insight Partners Analysis

Industries such as banking, healthcare, and government have strict regulations that require comprehensive background checks to prevent fraud, which includes verifying qualifications, criminal records, and employment histories that ensure employees meet legal and regulatory standards. Failure to comply can result in fines or legal repercussions. According to the report of the Association of Certified Fraud Examiners, Inc, the top five industries for workplace theft in 2022 were banking and financial services (median loss of US$ 100,000), government and public administration (median loss of US$ 150,000), manufacturing (median loss of US$ 177,000), healthcare (median loss of US$ 100,000), and energy (median loss of US$ 100,000). By investing in screening services, companies can mitigate the risks associated with employee fraud and ensure that they hire trustworthy, reliable individuals who will not harm the organization's financial health or reputation. Therefore, the increase in employee fraudulent activities is propelling the employment screening services market growth.

Acuity International; HireRight LLC; ADP, Inc.; Pinkerton Consulting and Investigations Inc; GoodHire; Capita Plc; KPMG Assurance and Consulting Services LLP; Verity Screening Solutions; ezyHire; Triton Inc; Revealbackground.com; First Advantage; Zeremark; DataFlow Group; Cisive; Accurate Background, LLC; Reed Group; AuthBridge; Paychex, Inc.; and Insperity Inc are among the key players profiled in the employment screening services market report. Several other major players were also studied and analyzed during the market study to get a holistic view of the market and its ecosystem.

The report includes the employment screening services market forecast by service, application, and organization size. Based on service, the employment screening services market is segmented into background screening, verification, and medical and drug testing. In terms of revenue, the verification segment held the largest employment screening services market share in 2023.

The scope of the employment screening services market report focuses on North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). North America dominated the market in 2023, followed by Europe and APAC.

The Asia Pacific employment screening services market is segmented into Australia, China, Japan, India, South Korea, and the Rest of APAC. In terms of revenue, China held the largest employment screening services market share in APAC. China is one of the most developing and largest economies in Asia Pacific. The background check of applicants is a regular practice in the country. However, the majority of the checks are subject to the consent of applicants. The growth of the employment screening services market in China is majorly attributed to a rapid hiring pace in the transportation, utilities, and services sectors. China is well-known for having an extensive, rapidly growing labor force, with ~290 million workers employed in various sectors as of 2023. In particular, the tech industry is expanding rapidly, which highlights the necessity of extensive background checks to guarantee the hiring of top-tier experts. Several key industries, such as finance, education, government, law enforcement, healthcare, and technology sectors, rely heavily on background checks to maintain integrity, security, and regulatory compliance in the country. Employee background checks in China are governed by various laws and regulations, such as the Labor Contract Law and the Personal Information Protection Law (PIPL), enforced by relevant governmental bodies such as the Cyberspace Administration of China (CAC) and the National Administration for the Protection of State Secrets (NAPSS).

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