The background check software market size was valued at USD 3.7 Billion in 2023 and is expected to reach a market size of USD 8.6 Billion by 2032 at a CAGR of 9.8%.
Fort Collins, Colorado, May 12, 2024 (GLOBE NEWSWIRE) --
The need for effective screening for onboarding candidates encourages using background check software in the corporate industry.
The growing imperative for secure and efficient hiring procedures significantly propels the background check software market. Research indicates that the expense of a poor hire can amount to as much as 30% of the employee's first-year earnings on average. This underscores the critical importance of comprehensive background checks in guaranteeing the caliber and dependability of recruits. Moreover, the surge in remote work precipitated by the pandemic has highlighted the necessity for thorough background screening solutions to maintain a safe and trustworthy workforce.
Another driving force behind the background check software market is the rising focus on compliance with diverse regulatory mandates. Governments and regulatory entities worldwide have implemented stringent guidelines and legislation to ensure equitable and impartial hiring practices. For instance, in the United States, the Equal Employment Opportunity Commission (EEOC) enforces federal statutes prohibiting workplace discrimination. Background check software solutions assist organizations in adhering to these regulations by furnishing standardized and compliant screening processes, thereby mitigating the risk of legal entanglements and reputational harm.
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Segmentation Overview:
The background check software market has been segmented into purchase model, deployment, enterprise size, end-user, and region.
The BFSI is the leading end-user segment accounting for a significant market share in the coming years.
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The market segmentation includes BFSI, retail, healthcare, and others based on the end-user. The BFSI sector holds a significant share of the end-user segment of the background check software market. The BFSI sector heavily relies on background checks to ensure the integrity and trustworthiness of its employees, as they handle sensitive financial information and customer data. Stringent regulations and compliance requirements in the financial industry further drive the adoption of background check software solutions in this sector.
The subscription-based models accounted for a substantial share in the coming years.
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Based on the purchase model, the market is segmented into subscription-based and one-time purchase. The subscription-based model holds a substantial share of the purchase model segment of the background check software market, due to its growing popularity among businesses. Subscription-based models offer flexibility, cost-effectiveness, and regular updates, making them an attractive choice for companies that require ongoing background checks for their employees or clients.