As we step into 2023, the Human Resources (HR) tech market continues to evolve and expand rapidly. With the rise of remote work, the demand for HR tech solutions has increased manifold. Employers are now looking for software that can assist them in recruiting, onboarding, managing, and retaining talent in a virtual environment. In this blog, we will discuss the Human Resources tech market outlook for 2023 with a special emphasis on Background Verification (BGV).
The HR tech market in 2023 is expected to grow at a compound annual growth rate (CAGR) of 11.4% from 2021 to 2026. The market size is expected to reach USD 45.6 billion by 2026, up from USD 26.3 billion in 2021. The pandemic has played a crucial role in driving this growth as companies are now investing more in HR tech solutions to streamline their remote hiring processes.
Background Verification (BGV) is an integral part of the recruitment process, and it has become increasingly critical for employers to ensure that they hire the right candidates. Companies like Quinfy helps to verify a candidate's educational qualifications, employment history, criminal record, and other relevant details. In 2023, the BGV market is expected to grow at a CAGR of 15.2% from 2021 to 2026.
One of the main reasons for the growth of the BGV market is the increasing number of fraudulent resumes and job applications. According to a report by CareerBuilder, 75% of employers have caught a lie on a resume. This highlights the need for a reliable and efficient BGV process. The BGV market is also being driven by the increasing demand for automated BGV solutions that can help employers save time and reduce the chances of errors.
In 2023, we can expect to see more employers investing in AI-based BGV solutions that can scan and verify a candidate's credentials in real-time. This will help companies to streamline their recruitment processes and hire the right candidates faster. AI-based BGV solutions will also help employers to identify potential red flags early on in the recruitment process.
Another trend that we can expect to see in the BGV market in 2023 is the increasing adoption of blockchain-based solutions. Blockchain technology can help to create a secure and tamper-proof database of a candidate's credentials. This can help to reduce the chances of fraud and make the BGV process more reliable.
In conclusion, the HR tech market in 2023 is expected to witness significant growth, and the BGV market is no exception. Employers are now more focused on hiring the right candidates, and BGV solutions play a critical role in achieving this. We can expect to see more employers investing in AI-based and blockchain-based BGV solutions to streamline their recruitment processes and reduce the chances of fraud.