Market Overview:

The Global Pre-Employment Testing Software Market Size Was Valued At USD 12.23 Billion In 2022 And USD 21.01 Billion By 2030 Is Expected To Grow At A CAGR Of 7% During The Forecast Period 2022 - 2030.

Pre-employment testing software is used to see how knowledgeable a person is before a company hires them. With pre-employment testing software, you don't waste time or money training people who aren't good enough for the job. This also makes it less likely that new hires will quit their jobs quickly when they find out they can't do them well because they don't have enough experience or skills in some areas.

Pre-employment testing software helps companies and HR departments make better hiring decisions by evaluating candidates in an objective way. These solutions give companies tests that can be used to find out about candidates' abilities, personalities, and skills, among other things. They also test soft skills like organization, problem solving, communication, and motivation. Some pre-employment testing software includes skills tests for roles like sales managers, accountants, or technical writers that are specific to the industry or the job. They may also give businesses general tests that they can change to fit their position, industry, and company culture.

Solutions for pre-employment testing often include both pre-made and custom tests that can be taken online or in person and give real-time test results and reports. Pre-employment testing solutions often work with a larger recruiting package or come with it. Technical skills screening software can be used by companies that want to test candidates' IT skills, technical skills, engineering skills, and coding skills.

Market Dynamics:

Market Trends:

The size of the global pre-employment testing software market is expected to grow from USD 210.68 billion in 2020 to USD 14.98 billion in 2025, at a Compound Annual Growth Rate (CAGR) of 7% during the forecast period. The main things that drive the market are the growing need for more accurate hiring decisions and the need to cut down on the cost and time of hiring.

Software for pre-employment testing is used to find out about a job candidate's skills, knowledge, and personality, among other things. This software helps businesses find the right people for the right jobs, which improves the productivity of the business. Here are the major trends that are likely to affect the market for pre-employment testing software over the next few years.

• Increase in the Use of Video-Based Pre-Employment Testing

With the rise of technology, more and more companies are using video-based pre-employment tests to evaluate people who want to work for them. This way of judging is becoming more popular because it saves time and money for organizations. Video-based pre-employment testing also lets companies evaluate a lot of applicants in a short amount of time.

• Growing Demand for Mobile-Based Pre-Employment Testing

As the number of people who use smartphones and tablets grows, there is a growing need for pre-employment testing solutions that can be done on mobile devices. By letting candidates take tests anywhere and at any time, these solutions help organizations save time and money. Mobile solutions for pre-employment tests are also becoming more popular because they are easy to use and flexible.

Driving Factors:

• Increasing Demand for Pre-Employment Testing Software in Large Enterprises

Large businesses always have more than a thousand people working for them. So, they need a lot of people working in human resources who can do things like training, hiring, and a lot of other things. Pre-employment screening helps reduce the risks that come with hiring new staff because it makes sure that only good workers without bad records are hired. People with criminal records or other offenses, on the other hand, are not allowed on the company's property. So, during the forecast period, the market growth is likely to be slowed by the growing demand for pre-employment testing software in large businesses.

• Rising Demand for Web-Based Pre-Employment Testing Software

The market is likely to grow because there is more demand for web-based pre-employment testing software. Web-based pre-employment testing software checks for psychomotor, behavioral, cognitive, and other personal traits that a certain job requires. This technology gives managers accurate information about a large number of candidates for less money than traditional methods, like tests and interviews with trained psychologists.

Restraints/Challenges:

• Growing Concerns Regarding Cyber Attacks

Cyberattacks like ransomware, viruses, distributed denial-of-service (DDoS), and corporate account takeover (CATO) are becoming more likely, which hurts the sales of pre-employment testing software and slows the growth of the market. Also, worries about the reliability and consistency of budgetary allocations may make it hard for the market to grow in the near future.

Opportunities:

• Growing Need for Transparency and Efficiency in the Hiring Process

The need for openness and efficiency in the hiring process is expected to grow over the next few years. This is because changes in human behavior and culture are making people more open than non-transparent companies. This will probably give the market a lot of chances to grow. Also, companies that give applicants a clear picture of the hiring process have a big advantage over their rivals because 35 percent of well-informed candidates are less likely to be unhappy with their experience. So, it also helps businesses get more talented people to work for them.

• Expansion of the Corporate Market Widens the Market Scope

The growth and expansion of the online corporate assessment market are expected to be driven by an increasing focus on evaluating the applicant on different parameters. During the forecast period, there are likely to be a lot of good opportunities for the growth of pre-employment testing software as technology advances and more attention is paid to the efficiency and costs of the hiring process.

Strategic Development:

• In March 2020 - Criteria Corp, a market-leading SaaS-based employment analytics platform, announced today that it has bought Revelian, a leader in emotional intelligence and game-based assessments based in Australia. This will happen.

Key Vendors:

Top market players are

• Berke Group, LLC.

HighMatch (formerly Berke) is a fast, mobile, and fully customizable talent insights solution. It helps organizations solve important hiring and retention problems by combining cognitive, personality, and skills testing with a full suite of services from our in-house team of I/O psychologists.

• Wonderlic

Wonderlic has a number of different intelligence tests that can be used to evaluate candidates. The tests come in many different languages and can be changed to fit the needs of the organization.

• GoodHire

GoodHire gives you fast, accurate, and reliable background check results. It also has the easiest background check workflow in the industry, making it easy for you to order and for your candidates to complete. Background checks for companies of all sizes are faster and easier with advanced technology platform, built-in compliance tools, and automated workflows.

• Criteria Corp.

Criteria Corp has a platform with a library of more than 500 different types of assessments. The assessments can be changed to fit the organization's needs.

• Capterra Inc.

Capterra, Inc. is an online marketplace company that helps software buyers and sellers connect with each other. The business helps customers choose software that fits their needs. Capterra also gives software sellers a way to connect with its buyers online.

• eSkill Corporation

eSkill Corporation was started in 2003 with the goal of making online tests easy to customize. Since then, it has become a global leader in job-based skills tests, behavioral assessments, and talent management consulting. eSkill knows that the most accurate and fair tests are the ones that are made to fit the needs of each job. So, the unique Talent Assessment Platform makes it easy to make multi-subject tests that are relevant to a wide range of job requirements and other testing goals.

• Epignosis

Epignosis is a leading and award-winning provider of high velocity learning management solutions. It offers organizations of all sizes an easy-to-use, fully-featured, and competitively priced SaaS platform that helps them meet their internal and external learning goals.

• HR Avatar Inc.

HR Avatar is an online test that can be used before hiring someone. It makes it easy to hire great people in a fair way. HR Avatar gives employers easy-to-use, self-service tests, job simulations, and assessments for more than 200 specific job titles. Each test measures a wide range of important traits, such as cognitive ability, writing ability (measured with AI), knowledge and skills, personality factors, emotional intelligence, behavior history, and simulated job tasks.

• Stang Decision Systems

Stang Decision Systems is a talent analytics company that sets the pace and is passionate about helping their clients and partners hire and develop the best employees possible. Stang Decision Systems helps companies be their best by making sure they hire the best people for jobs.

• Frontline Technologies Group LLC.

Stang Decision Systems is a talent analytics company that sets the pace and is passionate about helping their clients and partners hire and develop the best employees possible. Stang Decision Systems helps companies be their best by making sure they hire the best people for jobs.

• Symphony Talent LLC

The company's specialty is a recruitment platform that uses a cloud-based software suite for talent acquisition and an omnichannel analytics engine that combines employer branding, recruitment marketing, candidate management, and employee engagement enabling, employee engagement, retention, and advocacy.

• IBM Corporation

IBM, which stands for "International Business Machines Corporation," is a multinational technology company with its main office in Armonk, New York. It started out as the Computing-Tabulating-Recording Company (CTR) in 1911. In 1924, it changed its name to IBM. IBM is one of the biggest IT companies in the world, with offices in more than 170 countries.

Segmentation Analysis:

The market is segmented on the basis of product type, organization size, application, and region.

By Product Type:

Based on the type of product, the market is split into two groups: Web-based and Cloud-based. Cloud-based pre-employment software has a big share of the market because it is flexible, cheap, and works well. This software can even work without an internet connection and can give you results right away. This makes it easy to use, and it can also save information that can be used later. Also, this software helps get rid of bias and keep things open and honest in the organization. In addition, the organization can adjust the services needed to fit the job profile.

• Web based
• Cloud based

By Organization Size:

Based on organization size, the market is split into large enterprises and small and medium-sized enterprises (SMEs). The large enterprises segment is expected to keep its lead because there is more demand for this software and it's not too expensive. The software automates and cuts down on all the manual tasks, like judging a candidate's skills, attitude, behavior, ability to solve problems, and so on. Also, big businesses take extra steps to make sure their data is safe and secure and to avoid data breaches.

• Large enterprises
• SMEs

By Application:

Because bank employees are involved in more frauds and scandals in the BFSI sector, which are widely reported, the employment screening market is growing in this sector. The most important part of the economy is the financial services sector, which has to do with a person's property, money, and investments. Also, many banks and other financial institutions are using employment screening services to protect their reputation and money.

The one that is growing the fastest is healthcare. In this field, screening services include sending a candidate's blood and urine samples to well-known labs to see if they have a history of drug or alcohol abuse. A background check on the candidate's education, which looks at the training programs, certification courses, and internships they've done, is also an important part of healthcare background checks. Also, employment screening services help manage the workforce more efficiently by integrating HR systems, time-and-labor tracking, and payroll so that the company can focus on aligning work, productivity, and patient care. This is making more people in the healthcare industry want to use services that check out potential employees.

The second largest segment is IT, technology, and the media. In this field, background checks help companies cut down on employee theft and shrinkage by looking at an applicant's past actions and character. Also, most jobs in the IT sector require employees to have higher skills and work with sensitive client information. Employment screening helps employers hire people with the qualifications they need for the job and makes sure they have a good workforce. The growth of the market in this sector is also driven by the need to create a drug-free workplace and reduce the negative effects of drugs on employee health and the work environment.

• Healthcare
• IT/Technology/Media
• Financial Services
• Staffing
• Retail
• Industrial
• Travel/Hospitality
• Government/Education
• Transportation

Regional Insights:

North America brought in the most money and is expected to grow at an annual rate of 8%. North America is known as one of the biggest hubs of the IT industry. This is because more immigrants are moving there to find work, which helps the market grow. Also, many large companies in the US are starting to use effective employment screening services because they need to check the background of international candidates and choose the best person for the job. Also, the US and Canadian governments have a lot of rules about how to screen potential employees, which is expected to be a good thing for the market. For example, the US government made different industries follow the Fair Credit Reporting Act (FCRA) so that a company could check a candidate's criminal history and hire the best person for the job.

Asia-Pacific is the area with the most growth. At a CAGR of 11.6%, it is expected to be worth USD 3,165 million by 2030. In the Asia-Pacific region, the demand for employment background checks is going up because there are more types of checks and the rate of mistakes is going up. Australia and China have started to do pre-employment screenings and drug tests for businesses and have made it a requirement for public services to do background checks. Developed countries like South Korea, Taiwan, and Japan are all following the same trend. Employment screenings are done all the time by multinational companies to keep their employees working well. Also, the market is expected to grow because there is more demand for advanced products and services and because the government is taking more steps to protect organizations' valuable information.

Europe is the second biggest area in the world. In Europe, national and state laws protect people from being treated unfairly when they are being hired. This means that employers can't treat people differently because of their gender, race, disability, or anything else. The government has also put in place stricter rules to make sure this law is followed. Also, any kind of discrimination can lead to legal charges that can cost businesses money and hurt their reputation in the public eye. So, European companies hire employment screening services to do thorough background checks, which is a big reason for growth in this region. When it comes to employment screening service providers, Europe is a big place. There are many companies in this area, like Credence, Vero, and others, that do background checks and employment screenings. This helps the market grow in this area.

• 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
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Scope of Report:

Conclusion:

• The report has a lot of information about new trends, market drivers, growth opportunities, and market restraints that can change how the industry's market works.
• It gives an in-depth look at each market segment, including products, applications, and a look at the competition.
• The market gives a clear picture of how the market is competitive and who the top sellers are.
• This report helps with planning structures based on the current state of the industry.