As businesses across the country grapple with labor shortages, an innovative solution is emerging – hiring qualified individuals who have a criminal record. This approach, known as "Second Chance" or "Fair Chance" hiring, has the potential to address workforce gaps while benefiting businesses in numerous ways.
Contrary to popular belief, Second Chance hiring is not just an act of charity. It has proven to be good for business. Companies that embrace this practice can fill vacancies, reduce turnover, increase productivity, and lower onboarding costs. Moreover, Second Chance hiring has a positive impact on the community, creating economic activity, generating new tax revenue, and enhancing public safety.
A survey conducted among human resources professionals in 2021 revealed that 81% of respondents believed that the quality of workers with criminal records is on par with or better than workers without records. Additionally, the hiring costs for both groups were found to be nearly identical. Studies have also shown that employees with criminal records tend to have higher retention rates, lower turnover, and increased loyalty to their employers.
The recent reports from the U.S. Bureau of Labor Statistics indicate significant job openings in sectors such as accommodation and food services, as well as manufacturing. These are just a few examples of industries where talented individuals with criminal records can help bridge the labor gap.
Many business leaders are recognizing the value of Second Chance hiring. The Second Chance Business Coalition, led by prominent figures like Jamie Dimon (Chairman and CEO of JPMorgan Chase & Co.) and Craig Arnold (Chairman and CEO of Eaton), has brought together a coalition of more than three dozen companies, including Walmart, McDonald's, Verizon, Accenture, and Koch Industries, to work on this issue.
As someone who has experienced incarceration firsthand, I now collaborate with businesses to develop strategies that facilitate the recruitment and retention of individuals with criminal records. During my time in prison, many people approached me not for money but for help in finding employment after their release. Today, I assist businesses in creating organizational and risk management frameworks to support the successful integration of individuals with criminal records into the workforce.
According to a 2021 report by the Alliance for Safety and Justice, approximately one-third of American adults, or around 78 million people, have a criminal record. The impact is particularly significant for Black men, with a University of Georgia study revealing that 33% of Black men had a felony conviction in 2010, compared to 8% for the overall adult population.
Unemployment rates among individuals with criminal records are alarmingly high, exceeding 27% according to the Prison Policy Initiative. In contrast, the national unemployment rate stands at just 3.5%. Expanding employment opportunities for these individuals is essential to address this disparity.
Record-clearing, also known as expungement, plays a crucial role in risk management for businesses. However, the availability and criteria for expungement vary widely among states. In some cases, a minor offense in one state can permanently mar an individual's criminal record, while a more serious offense resulting in prison time may be expunged in another state. This inconsistency creates challenges for employers when conducting background checks and assessing candidates' suitability for employment.
Expanding expungement laws across states would provide additional risk management benefits for businesses. It would mitigate potential legal issues surrounding negligent hiring and streamline the hiring process by removing barriers associated with criminal records. By embracing expungement, businesses can navigate the complex risk management landscape and tap into the pool of qualified candidates with criminal records.
In states with robust expungement laws, businesses need not worry about the impact of expunged records, as they are shielded from negligent hiring lawsuits. However, in states without such laws, employers must carefully navigate background checks and employment laws to ensure compliance with the Fair Credit Reporting Act and their own risk management strategies.
Ultimately, Second Chance hiring is about giving individuals a fresh start and an opportunity to rebuild their lives. It is a chance for businesses to tap into a talent pool that has been largely overlooked and underutilized. By embracing Second Chance hiring practices, businesses can not only address labor shortages but also contribute to the economic and social well-being of their communities.
Unlocking the potential of individuals with criminal records is a win-win situation. It allows businesses to thrive by filling critical roles, increasing productivity, and reducing turnover. At the same time, it offers individuals an opportunity for redemption, economic stability, and a chance to reintegrate into society. By creating a pathway to employment, businesses can break the cycle of recidivism and promote positive social change.
As the conversation around Second Chance hiring gains momentum, more businesses are recognizing its value. It is no longer just a concept driven by corporate social responsibility; it is a strategic business practice with tangible benefits. By embracing Second Chance hiring, businesses can demonstrate their commitment to inclusivity, diversity, and social impact, while also reaping the rewards of a more engaged and loyal workforce.
In the end, Second Chance hiring is not just about providing individuals with a job; it is about offering them a second chance at life. It is about recognizing the potential within each person, regardless of their past mistakes, and giving them an opportunity to rewrite their story. By embracing Second Chance hiring, businesses can play a transformative role in the lives of individuals and make a lasting impact on society as a whole.