Market Insight:
Employment screening is the process of uncovering and verifying a person's previous records, which is usually done before the individual is recruited. It is a set of tests that allows the company to evaluate possible applicants from a pool and determine the best fit. These instruments are made up of many examinations that vary in shape and size and are used to examine applicants' skills, knowledge, cognitive ability, and individual behaviour. By establishing an objective criterion for acquiring employment, employment screening technology assists businesses in meeting their legal, regulatory, and financial duties. Employment screening assists organizations in determining if their new or potential recruits are a good match for the position.
Rising demand for time-efficient selection systems, as a result of an increase in the number of job applicants, as well as secular labour market tailwinds such as increased workforce mobility, remote work, higher employee churn, and a sizable freelance workforce, would impact the demand for the US employment screening market in the coming years. The US employment screening market is expected to reach US$2.01 billion in 2023, growing at a CAGR of 6.44% during the forecast period.
Segment Covered:
Top Impacting Factors:
Growth Drivers
Challenges
Trends
Driver: Rising Number of Start-ups
The small businesses in the US are doubling their size every year because they’ve been unshackled through either deregulation or lower taxes. These companies are creating majority of the jobs in the US. These start-up companies leverage technology, and encourage the ability to work remotely, directly impact hiring and workflow. Time and distance from the workplace are no longer barriers to employment, and the traditional work methodologies are going by the wayside. All of this is demanded by the employees and thus pave way for a lot of job applications. Thus, the rising jobs creation due to rising number of start-up businesses would boost the market of employment screening in the US.
Discriminatory practices can occur in any aspect of employment. Employment discrimination happens when an employee or job candidate is treated unfavorably because of age, disability, genetic information, national origin, pregnancy, race or skin color, religion, or sex. It is unlawful for an employer to assume that an employee may be incapable because he or she is disabled. An increasing number of cities and states in the US, limit employers to enquire into criminal records and convictions. In particular 53.8% of the job applicants faced retaliation discrimination in 2019. Discrimination concerns are associated with the adoption of employment screening services, for instance, if a particular credit history would disqualify an applicant, it must disqualify applicants of all races. Furthermore, employers are also expected to be careful to circumvent any use of background reports that may result in rejecting or hiring any class of employees based on gender, race, and other protected categories. Thus, employment screening services may discriminate and hinder the market from growing.
Social media screening is a process wherein a reference is made through candidates' social media profiles to ascertain if they are a perfect match for the open job role. A social media screening tool can uncover pictures of candidates in compromising situations, posts of them being violent or abusive online — all sort of behaviors that they can easily hide during an interview. Social media is becoming increasingly volatile, especially in the new normal condition wherein work from home culture is supported. People are increasingly using social media platforms to express themselves since the new normal means mostly interaction virtually. All of which, describes a candidate’s personality, preferences, and interests. Moreover, social media also provides information about the activities of the candidate, for example, participation in rallies, protests or even standing up or against someone or something. Therefore, social media screening has become increasingly important to know the nature of candidate before getting the person onto the job.
The COVID-19 Analysis:
The outbreak of Coronavirus disease (COVID-19) had a negative impact on the US employment screening market in 2020 as governments globally imposed lockdowns. Several people had become unemployed, due to the shutdown of many companies and other companies laid off the employees to cut cost. However, following COVID-19, the industry has seen an increase in 2021, due to the relaxation of lockout limitations and new startups being launched.
Analysis of Key Players:
The US employment screening market is fragmented with the presence of a large number of players majorly dominating worldwide. Key players of the US employment screening market are:
Employee screening market participants are mostly focused on product advancements through the implementation of advanced technologies. Signing partnerships, contracts, joint ventures, and financial agreements around the world allow the company to preserve its brand identity on a global scale. Sterling Talent Solutions, for example, engaged into a strategic agreement with ID.me in 2021 to transform background screening with cutting-edge identity verification solutions. In addition, Accurate Background, LLC claimed in 2020 that it has added new services to its COVID-19 Program to help businesses hire and thrive during the pandemic.