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NAICS Code 561311-15 Description (8-Digit)

Pre-Employment Verification is a subdivision of the Employment Placement Agencies industry that involves the process of verifying the background and credentials of potential employees before they are hired. This industry is responsible for ensuring that the information provided by job applicants is accurate and truthful, and that they meet the requirements for the position they are applying for. Pre-Employment Verification is a crucial step in the hiring process, as it helps employers make informed decisions and avoid potential legal issues.

Hierarchy Navigation for NAICS Code 561311-15

Parent Code (less specific)

Tools

Tools commonly used in the Pre-Employment Verification industry for day-to-day tasks and operations.

  • Background check software
  • Criminal record databases
  • Employment verification services
  • Education verification services
  • Reference check software
  • Drug testing kits
  • Social media screening tools
  • Credit check services
  • Identity verification software
  • Driving record databases

Industry Examples of Pre-Employment Verification

Common products and services typical of NAICS Code 561311-15, illustrating the main business activities and contributions to the market.

  • Background check services
  • Employment screening companies
  • Verification and credentialing services
  • Tenant screening services
  • Immigration screening services
  • Financial industry background checks
  • Healthcare industry background checks
  • Education industry background checks
  • Government agency background checks
  • Non-profit organization background checks

Certifications, Compliance and Licenses for NAICS Code 561311-15 - Pre-Employment Verification

The specific certifications, permits, licenses, and regulatory compliance requirements within the United States for this industry.

  • Fair Credit Reporting Act (FCRA) Certification: This certification is required for individuals who handle consumer reports, including pre-employment background checks. The FCRA is a federal law that regulates the collection, dissemination, and use of consumer information, including credit reports and criminal background checks. The National Association of Professional Background Screeners (NAPBS) provides this certification.
  • Professional Background Screening Association (PBSA) Accreditation: The PBSA is a non-profit trade association that represents companies in the background screening industry. Their accreditation program sets standards for background screening companies and ensures compliance with federal and state laws.
  • Certified Information Privacy Professional (CIPP): This certification is offered by the International Association of Privacy Professionals (IAPP) and demonstrates knowledge of privacy laws and regulations. Individuals who handle personal information during pre-employment background checks may benefit from this certification.
  • Professional Investigator Certification (PIC): This certification is offered by the National Association of Legal Investigators (NALI) and demonstrates knowledge of investigative techniques and legal procedures. Individuals who conduct pre-employment background investigations may benefit from this certification.
  • Certified Fraud Examiner (CFE): This certification is offered by the Association of Certified Fraud Examiners (ACFE) and demonstrates knowledge of fraud prevention, detection, and investigation. Individuals who conduct pre-employment background investigations may benefit from this certification.

History

A concise historical narrative of NAICS Code 561311-15 covering global milestones and recent developments within the United States.

  • The Pre-Employment Verification industry has been around for decades, with the first background check company, Pinkerton National Detective Agency, founded in 1850. However, it wasn't until the 1970s that the industry began to grow rapidly, with the introduction of the Fair Credit Reporting Act (FCRA) in 1970 and the Equal Employment Opportunity Commission (EEOC) guidelines in 1978. These regulations required employers to obtain written consent from job applicants before conducting background checks and to provide them with a copy of the report. In recent years, the industry has seen significant advancements in technology, with the introduction of artificial intelligence and machine learning algorithms that can analyze large amounts of data quickly and accurately. For example, some companies now use social media screening to identify potential red flags in a candidate's online presence. In the United States, the industry has faced increased scrutiny in recent years due to concerns about accuracy and fairness. In 2012, the Federal Trade Commission (FTC) issued a report that found errors in 21% of background check reports, leading to the implementation of stricter regulations and increased oversight. In 2019, the state of California passed a law that requires employers to disclose to job applicants if they used an AI-powered tool to analyze their social media profiles. Despite these challenges, the industry continues to grow as employers seek to mitigate risk and ensure a safe and productive workplace.

Future Outlook for Pre-Employment Verification

The anticipated future trajectory of the NAICS 561311-15 industry in the USA, offering insights into potential trends, innovations, and challenges expected to shape its landscape.

  • Growth Prediction: Growing

    The pre-employment verification industry in the USA is expected to grow in the coming years due to the increasing demand for background checks and drug testing services. The industry is expected to benefit from the growing number of businesses and organizations that require pre-employment screening services to ensure that they are hiring the right candidates. Additionally, the industry is expected to benefit from the increasing use of technology in the screening process, which is expected to improve the accuracy and efficiency of the screening process. However, the industry may face challenges due to the increasing competition from new entrants and the increasing regulatory scrutiny of the screening process.

Industry Innovations for NAICS Code 561311-15

Recent groundbreaking advancements and milestones in the Pre-Employment Verification industry, reflecting notable innovations that have reshaped its landscape.

  • AI-Powered Background Checks: AI-powered background checks are becoming increasingly popular in the pre-employment verification industry. These checks use machine learning algorithms to analyze large amounts of data and identify potential red flags in a candidate's background.
  • Social Media Screening: Social media screening is becoming more common in the pre-employment verification industry. This involves analyzing a candidate's social media profiles to identify any potential red flags, such as inappropriate behavior or comments.
  • Mobile Drug Testing: Mobile drug testing is a new innovation in the pre-employment verification industry. This involves bringing drug testing equipment to the candidate's location, which can save time and reduce costs.
  • Continuous Monitoring: Continuous monitoring is a new trend in the pre-employment verification industry. This involves ongoing monitoring of employees to ensure that they continue to meet the company's standards.
  • Blockchain-Based Verification: Blockchain-based verification is a new innovation in the pre-employment verification industry. This involves using blockchain technology to create a secure and tamper-proof record of a candidate's background check results.

NAICS Code 561311-15 - Pre-Employment Verification

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