The Background Check Industry Continues to Grow and Adapt

No matter the current economic conditions or the state of the labor market, one thing always remains true: businesses want to choose the best employees for the job. Hiring the wrong person can reduce productivity, negatively impact teams, and cost the business money when hiring again when they quit or are fired. Many employers see great value in using background checks to vet candidates along with interviews and resume evaluations.

Indeed, the industry built up around supporting companies in this aspect of hiring has only continued to grow. By 2022, the value of the background check industry in the United States approached nearly $4.5 billion. According to research, the industry has grown at an average rate of about 3% per year over the last five years — and that growth rate looks set to continue. This growth has occurred in a unique environment and reflects a resiliency that should serve the industry well as new changes arrive.

Businesses Adapt to Ban the Box Laws

The industry continues to grow and expand despite a concurrent effort to place more restrictions on background checks. As "Fair Chance" and "ban the box" laws were put in place nationwide, many employers have found themselves with sudden compliance requirements they did not have before.

This could explain part of the sector's continued growth: more businesses, especially SMEs, have recognized that an experienced partner can help them navigate tricky legal environments. Alongside access to information about applicants, that knowledge is a major selling point for companies providing employee background check services.

AI and Automation Tools Could Be the Future of Vetting

As the industry grows, it's also looking to evolve. Like most sectors today, there is a high interest in automation and AI. However, the government has also taken notice of these changes. The future of AI in background checks remains to be seen for two reasons. First, applications that can successfully leverage AI remain under development. Second, future regulations may put limits on these capabilities. However, it is not hard to imagine a time when AI might be used to scan someone's social media for problematic information —if it could do so without introducing bias and prejudice.

Automation, on the other hand, is an exciting area any business can embrace. Automation of background checks can involve obtaining an applicant's consent and providing disclosure forms in a compliant, automated way — then using that information to acquire and furnish reports for immediate review. Though it's impossible to predict exactly what innovations lie ahead, it is clear that employers will continue to require more support.

Why a Solid Background Check Partner Still Matters

Even with the potential for automated tools lurking just over the horizon, most background check processes still involve some manual work. Likewise, automating the final decision-making process is likely many years away, should it arrive at all. Though AI and new tools will deliver value to employers, a partner to provide insights, services, and compliance support will still be crucial to success.

With a partner such as, your business can do more than equip itself with excellent tools for vetting — you gain an important resource, too. From staying on top of changing legislation to accessing the latest processes and technology, small and medium-sized businesses can enjoy real value from the time and effort saved. Are you ready for the future of background checks?

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Michael Klazema

About Michael Klazema The author

Michael Klazema is the lead author and editor for Dallas-based with a focus on human resource and employment screening developments

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