Pre-Employment Screening Industry Report

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Pre-Employment Screening Industry Overview Industry Overview Due to the increasing costs associated with workplace embezzlement, fraud, violence, and other unethical business practices, the need to manage hiring and personnel risk has never been of greater importance than in today's business environment. The process of verifying past employment, education, and criminal history is an essential facet of many contemporary corporate risk management programs. The pre-employment screening industry is a small, highly fragmented sub-industry of the much larger Business Process Outsourcing (BPO) sector, a space dominated by a handful of large companies accounting for almost 25% of the industry's total revenue. Total revenue for the pre-employment screening industry is forecasted to be approximately $4 billion in 2007 with the top five players—U.S. Investigations, First Advantage, ChoicePoint, Kroll and ADP—accounting for approximately $900 million in annual revenue. HireRight, Axciom, and Accurate Background are examples of some of the more prominent mid-size companies in the industry. Pre-Employment Screening Pre-employment screening is the process of verifying a potential employee's character, general reputation, and personal characteristics. It may include any of the following: criminal background check, investigation of civil records, asset and bankruptcy records, credit reports, and driving records. Background checks also usually include verification of any licenses, education achievements, employment history and personal and professional references. Pre-employment screening has become an important practice for all employers due to the increasing costs associated with negligent hiring lawsuits and the threat ... ... middle of paper ... ...n 2005 alone. HireRight HireRight is one of the fastest growing mid-sized, private pre-employment screening companies in the U.S., having achieved 343% growth from 2002-2005 as reported by Inc. magazine. HireRight seeks to differentiate itself by partnering with leading enterprise e-recruiting solution providers such as Oracle/PeopleSoft, Vurv, and Deploy Solutions to offer pre-integrated solutions across its more than 50 service offerings, which is more than any other pre-employment screening firm. By offering pre-integrated solutions, the client is able to seamlessly access background screening services directly from their own enterprise system and reduce turnaround time to 48-72 hours in most cases. The company provided its more than 1000 clients with approximately 3.6 million verifications last year and reported revenue estimated at $38 million in 2005.
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