The Latest Background Check Industry Statistics Explained
The global background check market size was valued at nearly $ 6.38 billion in 2020.
The statistic indicates that in 2020, the global background check market was assessed to be worth approximately $6.38 billion. This market size value reflects the total revenue generated by companies providing background check services worldwide during that year. The significant market size suggests a high demand for background check services across various industries, likely driven by increased concerns about security, compliance, and risk management. The data underscores the importance of background checks in today’s business environment for verifying job applicants, business partners, tenants, and other individuals to mitigate potential risks and make informed decisions.
The background check industry is expected to grow at a CAGR of 6.3% from 2021 to 2028.
The statistic indicates that the background check industry is projected to experience a cumulative annual growth rate (CAGR) of 6.3% from the year 2021 to 2028. This indicates that the industry is anticipated to expand steadily over this time period, reflecting increasing demand for background screening services. The growth rate suggests that the industry is poised for significant development, likely driven by factors such as the rise in regulatory requirements, increased focus on security and compliance, and the growing emphasis on thorough due diligence in hiring processes. This projection implies opportunities for businesses operating in the background check sector to capitalize on the expanding market and potentially achieve long-term growth and profitability.
78% of firms in the UK often carry out background checks.
The statistic that 78% of firms in the UK often carry out background checks indicates the prevalence and importance of this practice in the business landscape. This high percentage suggests that a majority of businesses prioritize verifying the backgrounds of potential employees, suppliers, or partners before engaging in professional relationships with them. Background checks serve as a risk management strategy for firms to ensure the credibility and reliability of individuals or entities they are associating with, ultimately safeguarding their operations and reputation. This statistic reflects a trend towards increased vigilance and due diligence in hiring and partnering decisions among UK firms.
In the USA, 96% of employers perform background checks on their employees.
The statistic indicates that 96% of employers in the USA conduct background checks on their employees. This implies that the vast majority of employers prioritize vetting their potential hires before making a hiring decision. Background checks typically involve reviewing an individual’s criminal records, employment history, education, and other relevant information to ensure they are trustworthy, qualified, and suitable for the role. This high percentage suggests that employers value due diligence in the hiring process to mitigate risks associated with hiring candidates with a questionable or problematic background.
North America dominated the global background check market with a 45.6% share in 2020.
The statistic “North America dominated the global background check market with a 45.6% share in 2020” indicates that North America, including the United States and Canada, accounted for nearly half of the total market for background checks worldwide in the year 2020. This suggests that North America has a significant presence and influence in the industry, outperforming other regions in terms of market share. Factors such as the region’s large economy, advanced technological infrastructure, and stringent regulatory environment may have contributed to its dominance in the global background check market. This statistic highlights North America as a key player in the industry and underscores the importance of the region in shaping trends and developments within the background check market.
Public records segment of the background check industry accounted for 39.7% market share in 2020.
The statistic states that in 2020, the public records segment of the background check industry held a market share of 39.7%. This indicates the proportion of the background check market that is attributed to public records searches. Public records typically include information from government sources such as criminal records, court documents, property records, and other publicly available data. The significant market share suggests that public records searches are a prevalent and essential component of background checks conducted by individuals, businesses, and organizations to verify the authenticity and history of individuals. The high market share highlights the importance and reliance placed on public records as a vital resource for conducting thorough background checks.
Retail and e-commerce businesses accounted for 20.9% of the background check market in 2020.
The statistic “Retail and e-commerce businesses accounted for 20.9% of the background check market in 2020” indicates the proportion of the background check market captured by companies operating in the retail and e-commerce sectors during the year 2020. This statistic suggests that these particular industries held a notable share of the market for background check services, showcasing the importance of thorough screening processes in the recruitment and hiring practices within retail and e-commerce companies. Understanding this market share figure can be valuable for businesses looking to gauge the prevalence and significance of background checks within the retail and e-commerce sectors, as well as for providers of background check services aiming to target specific industries for their offerings.
Business credit report is expected to rise at a CAGR of 12.0% in the background check industry.
This statistic indicates that the business credit report market within the background check industry is forecasted to experience a Compound Annual Growth Rate (CAGR) of 12.0% over a specific period of time. A CAGR of 12.0% implies that the market size for business credit reports is anticipated to increase by an average of 12.0% annually, reflecting a notable growth trend within the industry. This growth rate suggests that there is likely a rising demand for business credit reports as part of background checks, showcasing an increased emphasis on evaluating the financial health and creditworthiness of businesses in various sectors. Businesses operating within the background check industry may need to adapt to this growth by enhancing their offerings in business credit reporting services to meet the escalating needs of their clients.
Within the UK, approximately 30% of candidates have a criminal record that is returned on a DBS background check.
The statistic indicates that within the United Kingdom, about 30% of candidates who undergo a Disclosure and Barring Service (DBS) background check are found to have a criminal record. This suggests a significant portion of individuals may have prior criminal convictions or cautions that are revealed during the screening process. Employers and organizations often use DBS checks to assess the suitability of candidates for certain roles, especially those working with vulnerable populations such as children or elderly. Understanding that a substantial proportion of individuals may have a criminal record underscores the importance of thorough background checks in making informed hiring decisions and ensuring the safety and security of the workplace or community.
In 2021, Checkr, a background check company, processed approximately one million background checks per month.
The statistic that in 2021, Checkr processed approximately one million background checks per month provides valuable insight into the scale and scope of the company’s operations. This statistic indicates that Checkr has a significant presence in the background check industry, handling a high volume of background checks on a monthly basis. The large number of background checks processed by Checkr highlights the demand for such services in various industries, including employment screening, tenant background checks, and other verification processes. It also suggests that Checkr has built a strong reputation and trust among its clients, who rely on the company to conduct thorough and reliable background checks efficiently.
69% of organizations don’t believe their companies are highly effective at screening.
The statistic implies that a significant majority, specifically 69% of organizations, do not consider their screening processes to be highly effective. This suggests that there is a perceived inadequacy or room for improvement in the way companies evaluate potential candidates or screen for certain criteria, such as skills, qualifications, or cultural fit. It highlights a potential gap between the current screening practices being employed by organizations and the level of effectiveness desired or needed. As a result, there may be a need for organizations to review and enhance their screening methods to ensure they are selecting the most suitable candidates for their respective roles.
16% of background checks conducted globally come back with at least one discrepancy.
The statistic that 16% of background checks conducted globally come back with at least one discrepancy represents the rate at which inaccuracies or inconsistencies are identified during the screening process. This suggests that a significant proportion of individuals undergoing background checks have discrepancies in their records, which could range from inaccuracies in personal information to more serious issues like criminal history discrepancies. Such discrepancies may raise concerns about the reliability and accuracy of the information provided, highlighting the importance of thorough and careful background checks in various contexts such as employment screening, tenant background checks, or security clearances.
31% of data breaches lead to employees losing their jobs.
The statistic ‘31% of data breaches lead to employees losing their jobs’ indicates that in nearly one-third of data breach cases, employees are held accountable for the breach and face consequences in the form of job loss. This suggests that organizations take data security seriously and hold employees responsible for their role in preventing breaches. The high proportion of job loss resulting from data breaches underscores the potential severity of the impact of such incidents on individuals within the organization. It also serves as a reminder of the importance of robust data security measures and employee training to mitigate the risk of breaches and protect both the organization and its employees from the negative repercussions of such incidents.
29% of checks reveal serious felonies as the worst offense.
The statistic “29% of checks reveal serious felonies as the worst offense” indicates that in a given sample of checks conducted, nearly 29% of those checks uncovered serious felonies as the most severe criminal offense committed by the individuals being checked. This statistic suggests that a significant proportion of individuals subject to background checks have been involved in serious criminal activities that are categorized as felonies. This finding underscores the importance of thorough background checks in identifying individuals with potential criminal histories and helps inform decision-making processes in various fields such as employment, law enforcement, and security.
Conclusion
The background check industry statistics provide valuable insights into the trends and practices within the sector. As demonstrated in this blog post, the data highlights the increasing importance of background checks in various industries and the growing market demand for such services. By staying informed on the latest statistics and trends, businesses and individuals can make better-informed decisions when it comes to screening potential employees, tenants, or partners.
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