Did you know that background screening is a multi-billion dollar industry? By 2020, the size of the global market was estimated to be worth about $5 billion in value. By 2032, industry analysts expect this sector to grow to worth nearly $12 billion—with even more growth anticipated.
Perhaps most interesting, analysts say, the screening industry will approach a compound annual growth rate of 9%. That figure represents an impressive return on any investments in this industry and signals a strong and healthy economic environment. It's an excellent time to be in the business of helping others conduct thorough background checks.
So, what do these statistics and all this growth mean for the average employer?
First, this trend reflects a continued understanding among employers of the importance of background screening services for protecting businesses. High-profile headlines about fraudsters or criminals causing harm because of lax procedures have driven a renewed look at internal controls in many industries.
Second, there is a compliance environment that continues to grow more complicated. With "ban the box" laws now on the books in dozens of cities and states and a federal Fair Chance law in place, employers must navigate a challenging legal landscape. Background check providers are increasingly a critical pillar in this process.
As the service that connects employers and criminal record or verification processes, screening companies have the expertise to understand all the latest changes in background check-related laws. This knowledge makes them a key asset to employers. When businesses need help formulating a compliant process, they can increasingly turn to their providers for insight and assistance. Screening companies can even assist with compliance on items such as the FCRA adverse action notice process.
Across the industry, this increased level of collaboration between employers and providers will ultimately lead to better products, outcomes, and innovations. Compliance can become less of a concern, and the risk of frivolous lawsuits over trivial vetting-related issues is reduced. Employers enjoy peace of mind while background check providers build long-term relationships with their partners.
At a time when many sectors are in a growth stage and experiencing a pressing need for more staff, safe, thorough, and accurate hiring practices are more critical than ever. Investing in employment screening services is an investment in the health of your business. Though background checks can't predict or prevent future criminal activity, they provide an important lens for employers to examine their workforce.
As the industry continues to grow, we expect to see more innovation and further attempts to streamline the background screening process. For businesses, this growth represents an excellent opportunity. A strong partnership with your screening provider can be the foundation for every successful new hire you make. From sourcing data to understanding what it says to maintain compliance, a smarter way of doing things is within reach—and it's only getting better.
About Michael Klazema The author
Michael Klazema is the lead author and editor for Dallas-based backgroundchecks.com with a focus on human resource and employment screening developments