The employee background screening service category’s growth is driven by rising awareness of the importance of background screening and globalization

Employee Background Screening Services Category - Procurement Intelligence

The employee background screening services category is expected to grow at a CAGR of 9.9% from 2023 to 2030. Businesses are increasingly implementing background checks to protect themselves from legal liability and ensure employee safety. These checks identify potential risks like criminal histories, financial issues, and drug use, enabling them to make informed hiring decisions. For instance, companies can protect themselves against liability in case of crime or accident and ensure employee safety by identifying potential risks like violence or drug use. Through the identification of individuals with a history of violence or criminal behavior, background checks can assist businesses in spotting possible hazards to workplace safety. The growing risk of fraud brought on by employee fraud is a major problem for businesses of all kinds. Employers can use background checks to spot possible fraudsters by looking up their criminal histories, financial difficulties, and work histories.

Technology has made background checks more affordable and accessible, leading to increased demand for these services. Globalization has made it more challenging for employers to verify employee backgrounds due to a lack of international cooperation and increasing use of technology as it is easier for people to hide their criminal records, but employment screening services can help overcome this by providing access to global databases of criminal records. Employers are increasingly becoming aware of the importance of background checks due to the increasing number of noteworthy fraud and violence cases linked to employees with criminal records. For instance, in April 2023, a branch manager (BM) of the Central Bank of India was charged with fraud of USD 37,000 by the Aligarh police. The BM, who was absconding, was charged with stealing the money and using it to wager on IPL cricket matches, according to the police.

Companies are continuously focusing on increasing accuracy through strategic acquisitions or technological partnerships. For instance,

• In March 2023, VerifyNow Pty Ltd, an Australian provider of job screening, was purchased by Accurate Background. The acquisition strengthened Accurate's offering of worldwide compliance-driven employment screening products while enhancing its vision to expand globally.

• In November 2022, Oracle partnered with Global HR Research (GHRR), a technology leader in employment screening services, drug testing, and verifications, to enhance its human capital management (HCM) system and boost its HR resources job placement efficiency.

Background checks are becoming more effective and economical for companies by using AI to automate tasks like data collecting and processing. Employers can make better hiring judgments because AI can spot patterns and trends in data that human analysts miss. By learning and developing over time, machine learning, a type of AI, raises the accuracy and effectiveness of background checks. Employers may conduct background checks more easily and affordably without investing in their own equipment thanks to cloud computing and natural language processing (NLP), which automate the extraction of information from documents. Overall, background checks and hiring decisions are improving thanks to AI and NLP.

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Employee Background Screening Services Sourcing Intelligence Highlights

• The number of both large and small companies operating in different areas has caused the employee background screening services category to become highly fragmented globally. Players compete aggressively with one another to grow their customer base and offer superior customer service.

• Labor, equipment and software, and compliance account for the largest cost component of the employee background screening services business.

• Most of the service providers offer services such as criminal background checks, drug testing, and employment verification.

Employee Background Screening Services Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape

• Market estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, and PPT and online dashboard versions 

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the employee background screening servicescategory:

• Labor

• Equipment and Software

• Compliance

• Rent and Utilities

• General and Administrative

• Others

Labor, equipment and software, and compliance form the largest cost components of the employee background screening services category.

List of Key Suppliers in the Employee Background Screening Services Category

• Pinkerton Consulting & Investigations, Inc

• HireRight, LLC

• A-Check America Inc.

• Verity Screening Solutions

• Capita Plc

• Triton

• DataFlow Group

• Sterling Talent Solutions

• First Advantage Corporation

• Accurate Background