The Global Pre-Employment Testing Software Market Was Valued At $12.23 billion In 2022 And Is Expected To Expand $21.01 billion By 2030 at a CAGR Of 7% From 2023 To 2030. Key factors driving the growth of this market include the increasing demand for pre-employment testing software in large enterprises, rising demand for web-based pre-employment testing software.
Large corporations always employ more than one thousand people. Therefore, they require a large number of human resources professionals capable of training, hiring, and many other tasks. Pre-employment screening reduces the risks associated with hiring new employees by ensuring that only qualified candidates with clean records are hired. On the other hand, individuals with criminal records or other offenses are not permitted on the company's property.
Segmentation Overview:
Product Type Outlook:
The market is divided into two groups based on the type of product: Web-based and Cloud-based. The market share of cloud-based pre-employment software is substantial because it is adaptable, inexpensive, and effective. This software can operate even without an internet connection and provides instant results. This makes it simple to use, and it can also store information for later use. Additionally, this software helps eliminate bias and maintain openness and honesty within the organization. In addition, the organization can tailor the required services to the job description.
Organization Size Outlook:
The market is segmented by organization size into large enterprises and small and medium-sized enterprises (SMEs). It is anticipated that the large enterprise segment will maintain its lead because there is a greater demand for this software and it is reasonably priced. The software automates and reduces the number of manual tasks, such as evaluating a candidate's skills, attitude, behavior, and problem-solving ability, among others. Moreover, large businesses take additional measures to safeguard their data and prevent data breaches.
Application Outlook:
As reported frauds and scandals involving bank employees in the BFSI sector increase, the employment screening market is expanding in this industry. The financial services industry, which deals with a person's property, money, and investments, is the most important sector of the economy. Additionally, many banks and other financial institutions utilize employment screening services to safeguard their reputations and finances.
Healthcare is expanding at the fastest rate. In this industry, screening services include sending a candidate's blood and urine samples to reputable labs to determine if they have a history of alcohol or drug abuse. A background check on the candidate's education, including a review of their training programs, certification courses, and internships, is also an essential component of healthcare background checks. Additionally, employment screening services contribute to the efficient management of the workforce by integrating HR systems, time-and-labor tracking, and payroll, allowing the business to concentrate on aligning work, productivity, and patient care. This encourages more individuals in the healthcare industry to utilize services that screen potential employees.
IT, technology, and the media are the second largest sector. In this field, background checks help companies reduce employee theft and shrinkage by examining the past actions and character of applicants. Additionally, the majority of jobs in the IT industry require employees to have advanced skills and work with sensitive client data. Employment screening enables employers to hire candidates with the required skills and ensures that they have a strong workforce. The need to create a drug-free workplace and reduce the negative effects of drugs on employee health and the work environment is also driving the market growth in this sector.
Regional Analysis:
North America generated the most revenue and is anticipated to grow by 8% annually. North America is recognized as one of the largest IT industry centers in the world. This is because more immigrants are migrating there in search of employment, which stimulates market expansion. Additionally, many large companies in the United States are beginning to use efficient employment screening services in order to check the backgrounds of international candidates and select the best candidate for the position. In addition, the United States and Canada have numerous regulations regarding the screening of potential employees, which is expected to be beneficial for the market. For instance, the US government mandated that various industries adhere to the Fair Credit Reporting Act (FCRA) so that employers could check a candidate's criminal record and hire the most qualified individual.
Asia-Pacific is the fastest-growing region. At a CAGR of 11.6%, it is anticipated to reach $3,165,000,000 by 2030. In the Asia-Pacific region, the demand for employment background checks is increasing because there are now more types of checks and the error rate is increasing. Australia and China have implemented pre-employment screenings and drug testing for businesses and mandated background checks for public services. Developed nations such as South Korea, Taiwan, and Japan all adhere to the same pattern. Multinational corporations regularly conduct employment screenings in order to keep their employees in good working condition. In addition, the market is anticipated to expand due to the increased demand for innovative products and services, as well as the government's increased efforts to safeguard organizations' sensitive data.
Europe is the second largest landmass on the planet. In Europe, national and state laws protect employees from unfair treatment during the hiring process. This means that employers cannot discriminate based on gender, race, disability, or any other factor. The government has also implemented stricter regulations to ensure compliance with this law. In addition, discrimination can result in legal charges that can cost businesses money and harm their public image. Therefore, European companies hire employment screening services to conduct exhaustive background checks, which is a major factor in this region's growth. Europe is a large continent when it comes to employment screening service providers. There are numerous companies in this industry that conduct background checks and employment screenings, including Credence, Vero, and others. This facilitates market expansion in this region.
Scope of Report:
Market Dynamics:
Restraining Factors:
- Increasing Worries Regarding Cyber Attacks
Cyberattacks such as ransomware, viruses, distributed denial of service (DDoS), and corporate account takeover (CATO) are becoming more prevalent, which hinders the sales of pre-employment testing software and slows the market's growth. In addition, concerns about the dependability and consistency of budgetary allocations may make market expansion difficult in the near future.
Opportunity Analysis:
- Increasing Demand for Efficacy and Transparency in the Hiring Process
In the coming years, the need for transparency and effectiveness in the hiring process is anticipated to increase. As a result of changes in human behavior and culture, individuals are becoming more open than nontransparent businesses. This will likely create numerous opportunities for market growth. Also, companies that provide candidates with a clear picture of the hiring process have a significant advantage over their competitors, as 35% of well-informed candidates are less likely to be dissatisfied with their experience. Therefore, it also helps businesses hire more talented individuals.
- The expansion of the corporate market broadens the scope of the market.
The growth and expansion of the online corporate assessment market are anticipated to be driven by a greater emphasis on evaluating the applicant based on various criteria. As technology advances and more focus is placed on the efficiency and costs of the hiring process, there are likely to be a number of favorable growth opportunities for pre-employment testing software during the forecast period.
Key Segments Covered:
Top Market Players:
- Berke Group, LLC.
- Wonderlic
- GoodHire
- Criteria Corp.
- Capterra Inc.
- eSkill Corporation.
- Epignosis
- HR Avatar Inc.
- Devskiller Sp. z o.o..
- Stang Decision Systems.
- Frontline Technologies Group LLC.
- Symphony Talent LLC
- IBM Corporation
By Type:
- PC Terminal
- Mobile Terminal
By Deployment:
By Organization Size:
By Application:
- Healthcare
- IT/Technology/Media
- Financial Services
- Staffing
- Retail
- Industrial
- Travel/Hospitality
- Government/Education
- Transportation
Regional Outlook (Revenue, USD Million, 2017 - 2030)
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- France
- Italy
- Spain
- UK
- Nordic Countries
- Denmark
- Finland
- Iceland
- Sweden
- Norway
- Benelux Union
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia-Pacific
- Japan
- China
- India
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
