GITNUX MARKETDATA REPORT 2024

Background Screening Industry Statistics

The background screening industry is projected to grow steadily in the coming years, driven by increased demand for screenings in various sectors such as employment and tenant verification.

Highlights: Background Screening Industry Statistics

  • North America is expected to hold the highest market share for background checks.
  • 92% of employers in 2019 conducted background checks on candidates.
  • Approximately 62% of organizations perform background checks post-offer.
  • Around 72% of background checks yield negative information.
  • Around 73% of background checks in 2017 took four days or less to complete.
  • 25% of businesses do not conduct ongoing background checks on employees.
  • Around 88% of organizations re-screen their workforce in some capacity.
  • Almost 50% of employers outsource all background check services.
  • Around 96% of employers conduct at least one type of employment background screening.
  • Approximately 31% of employers have taken disciplinary action against employees based on background screening results.
  • Almost 85% employers found fabrications on a resume or job application during the background screening process.

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The Latest Background Screening Industry Statistics Explained

North America is expected to hold the highest market share for background checks.

The statistic stating that North America is expected to hold the highest market share for background checks implies that within the global market for background checks, North America is projected to have the largest portion of the market in terms of revenue, clients served, or other relevant metrics. This suggests that North America, comprising countries such as the United States and Canada, is anticipated to be a key player in the background check industry, likely due to factors such as stringent regulations, a high demand for background screening services, and advanced technology infrastructure supporting such services in the region. The statistic highlights the dominant position of North America in this particular market segment and underscores the region’s significance in the context of background check services worldwide.

92% of employers in 2019 conducted background checks on candidates.

The statistic ‘92% of employers in 2019 conducted background checks on candidates’ indicates that a large majority of employers utilized background checks as part of their hiring process in 2019. Background checks are commonly used by employers to verify a candidate’s credentials, education, work history, and criminal record. This high percentage suggests that background checks have become a standard practice in the recruitment process, allowing employers to make more informed hiring decisions and ensure the safety and security of their workplace. The widespread adoption of background checks underscores the importance that employers place on due diligence and risk mitigation when it comes to selecting new employees.

Approximately 62% of organizations perform background checks post-offer.

The statistic “Approximately 62% of organizations perform background checks post-offer” indicates that a majority of organizations conduct background checks on potential employees after extending a job offer. This practice is often seen as a standard procedure in the recruitment process to verify the accuracy of information provided by candidates and to assess any potential risks or concerns that may impact the employer-employee relationship. By conducting background checks post-offer, organizations aim to make more informed hiring decisions and mitigate potential risks related to the candidate’s past behavior or qualifications, ultimately contributing to a more secure and effective workforce.

Around 72% of background checks yield negative information.

The statistic “Around 72% of background checks yield negative information” indicates that the majority of background checks conducted result in finding some form of adverse or concerning information about the individuals being screened. This high percentage suggests that a significant portion of the population may have red flags such as criminal records, previous employment issues, or other problematic history that could potentially impact their eligibility for certain positions or opportunities. As such, it underscores the importance of thorough background screening processes in various contexts, such as employment decisions, tenancy agreements, or other forms of vetting for risk assessment and due diligence purposes.

Around 73% of background checks in 2017 took four days or less to complete.

The statistic states that approximately 73% of background checks conducted in 2017 were completed within a time frame of four days or less. This suggests that the majority of background checks during that period were processed relatively quickly, indicating efficiency in the background check process. The statistic implies that only around 27% of background checks took longer than four days to complete, highlighting a smaller proportion of cases that experienced delays or extended processing times. Overall, the data suggests that the background check system in 2017 was largely effective in providing timely results to individuals or organizations conducting these checks.

25% of businesses do not conduct ongoing background checks on employees.

This statistic indicates that a quarter of businesses do not engage in regular background checks on their employees. Background checks are essential for ensuring the reliability and credibility of workers, as they help identify any criminal records, past misconduct, or fraudulent activities that could pose risks to the company and its operations. Businesses that do not conduct ongoing background checks may be more vulnerable to hiring individuals with problematic backgrounds, potentially leading to legal issues, financial losses, and damage to reputation. Therefore, companies should prioritize implementing regular background screening processes to maintain a safe and trustworthy work environment.

Around 88% of organizations re-screen their workforce in some capacity.

The statistic indicates that a significant majority, around 88%, of organizations engage in some form of re-screening their workforce, which suggests a widespread practice within the business world. Re-screening refers to the process of conducting background checks, drug tests, or other forms of evaluations on current employees as opposed to just during the initial hiring process. This practice is likely aimed at ensuring ongoing compliance with company standards, maintaining a safe work environment, and mitigating any potential risks associated with employee misconduct or changes in personal circumstances. The high percentage of organizations implementing re-screening procedures underscores the importance placed on workforce monitoring and risk management in today’s business landscape.

Almost 50% of employers outsource all background check services.

The statistic “Almost 50% of employers outsource all background check services” indicates that nearly half of employers rely on external companies or services to conduct comprehensive background checks on potential employees. Outsourcing these services can provide several benefits to employers, such as increasing efficiency, ensuring compliance with regulations, and accessing specialized expertise in background screening. By outsourcing background check services, employers can streamline their hiring process and make more informed decisions when evaluating candidates for employment. This statistic highlights a common practice in the business world and sheds light on the increasing importance of thorough background checks in the hiring process.

Around 96% of employers conduct at least one type of employment background screening.

The statistic stating that around 96% of employers conduct at least one type of employment background screening indicates a widespread and prevalent practice among organizations when hiring new employees. This finding suggests that the vast majority of employers prioritize due diligence and risk mitigation by verifying applicants’ qualifications, criminal records, employment history, and other relevant information. By conducting background screenings, employers aim to ensure the safety and integrity of their workplace, protect their employees and customers, and make informed hiring decisions. This statistic underscores the importance of background checks in the recruitment process and highlights their near-universal adoption across various industries and sectors to mitigate potential risks associated with hiring.

Approximately 31% of employers have taken disciplinary action against employees based on background screening results.

The statistic stating that approximately 31% of employers have taken disciplinary action against employees based on background screening results indicates that a significant portion of employers have encountered issues with their employees’ backgrounds that led to disciplinary measures being taken. This suggests that many employers are actively utilizing background screening processes to evaluate the suitability of job candidates or existing employees, and that a non-negligible proportion of these screenings have uncovered concerning information that warranted disciplinary actions. Employers may be using these screenings to mitigate risks related to potential misconduct, criminal behavior, or other red flags in the employees’ past, which can impact workplace safety, employee performance, and organizational reputation. This statistic underscores the importance of thorough background checks in the hiring process and ongoing workforce management strategies.

Almost 85% employers found fabrications on a resume or job application during the background screening process.

The statistic indicating that almost 85% of employers found fabrications on a resume or job application during the background screening process suggests a high prevalence of dishonesty among job applicants. This finding highlights the importance of thorough background checks conducted by employers to verify the accuracy of the information provided by candidates. Fabrications on resumes can range from simple exaggerations to more serious misrepresentations of qualifications and experience. Such dishonesty can have serious implications for the hiring process, potentially leading to a poor fit between the candidate and the role, as well as damaging the organization’s reputation. Employers should emphasize the significance of integrity in the recruitment process and implement robust screening procedures to ensure the authenticity of applicants’ credentials.

References

0. – https://www.www.shrm.org

1. – https://www.legalsolutions.thomsonreuters.com

2. – https://www.www.hireright.com

3. – https://www.www.goodhire.com

4. – https://www.www.mordorintelligence.com

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

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