The Untapped Potential of Second-Chance Hiring

Every year over 600,000 people leave the US prison system, and 60% of them will remain unemployed for over a year following their release. Not only does this cost the economy billions in lost productivity, but by failing to update your hiring practices to provide opportunities to individuals with a criminal record you are missing out on some exceptional, hard-working, and motivated talent. Second-chance hiring could be an important angle for retail, manufacturing, and hospitality employers looking to solve staffing shortages or access new pools of talent.

What Is Second-Chance Hiring?

Second-chance hiring is making your recruitment policies and processes more accepting of applicants with a criminal record. Nearly 1 in 3 American adults has a criminal record that would show up on a background check and this can prevent them from applying for or being offered roles for which they are qualified. In fact, the Second Chance Business Coalition has found that just having a criminal record can reduce a candidate’s chances of reaching a second interview by up to 50%.

Who Is Leading the Way?

Over the last decade, many employers have begun recognizing the power and potential of second-chance hiring. Big names like Walmart, J.P Morgan Chase, Target, Deloitte, and many others have pledged to make changes to their hiring policies and processes to make it easier for candidates with criminal records to access jobs. And they are experiencing some success. J.P. Morgan Chase for example reports that 10% of its new hires have previous convictions that have no bearing on their current roles. It achieved these numbers by removing the requirement for candidates to disclose their criminal convictions on job applications.

But it’s not just big names. Greyston Bakery in Yonkers, New York has been practicing “open hiring” since the 1980s, hiring applicants on a first come, first served basis with no resumes, interviews, or background checks required. At Greyston, 70-80% of its employees come from this open hiring policy.

Why Should You Offer a Second Chance?

The benefits of second-chance hiring for the individual and for society are clear. With a job and opportunities, people are less likely to re-offend and are less likely to require public assistance, become homeless, or even end up back in jail. Instead, they can support themselves and contribute to their communities. There are benefits for employers for offering a second chance program too:

1. Improve Productivity

The Society for Human Resources Management (SHRM) has found that 85% of HR and 81% of business leaders say that individuals with criminal records perform the same as or better than employees without criminal records.

2. Reduce Turnover

Alongside being hard-working and productive, second-chance employees are highly loyal. Data from the Second Chance Business Coalition (SCBC) shows that second-chance hires have lower turnover rates, helping organizations save on hiring costs and keeping enthusiastic, engaged employees.

3. Access Government Incentives

There are other financial incentives for hiring second-chance employees. The Federal Work Opportunity Tax Credit gives employers who hire a qualified ex-felon a tax credit of up to 25% of their first year’s wages if the employee works at least 120 hours, and 40% if they work over 400.

4. Support DEI

Second-chance hiring is absolutely a diversity issue. One in three Black men have a felony conviction. When you commit to removing barriers for candidates with criminal records you reach communities that may be underrepresented in the workforce.

5. Solve Staffing Gaps

Perhaps the biggest benefit that comes from hiring second-chance employees is the chance to solve skill and talent gaps. Vocational training is the most common form of prison education. Many of those with criminal convictions have skills from their previous employment or that they have gained during incarceration that could prove valuable to employers.

However, for second-chance hiring to really work, it needs to be done for the right reasons, and with the right processes and policies in place to drive success for both the organization and the second-chance employee. Good intentions and the possibility of positive PR are not the right reasons to consider a second-chance hiring policy.

Second-Chance Hiring Tips

Instead, consider the following tips to help your second chance hiring initiatives get off the ground:

1. Keep an Open Mind

We tend to have inbuilt unconscious biases when it comes to hiring those with criminal convictions. It’s important to keep an open mind as you open your hiring process and remember that a person’s past does not define who they are in the present while maintaining a healthy, pragmatic attitude.

2. Remove Friction in the Hiring Process

Take steps to remove the barriers in your hiring process that may be preventing applicants with previous convictions from applying successfully to roles in your organization. Consider:

• If all roles really require background checks
• Using skills assessments to assess ability
• Offering non-traditional benefits such as rides to work or childcare support
• Providing onboarding tailored to setting second-chance employees up for success

3. Connect with National and Local Organizations

If you are unsure about what you can do to offer opportunities to second-chance employees consider contacting a national or local organization that provides support to employers or charities that run second-chance programs placing individuals in roles with local businesses.

4. Provide Training and Mentorship

Transitioning back into the workplace can be challenging. Offer targeting training schemes to help second chance employees brush up on the basics such as IT skills, meeting etiquette, and time and workload management and support their access to career development opportunities such as leadership training. Mentors can provide invaluable support in this process especially if they have faced similar challenges.

5. Educate Your Workforce

Nobody needs to know exactly which colleagues have a criminal conviction, but it is important to be transparent about why you are offering second chance opportunities. Once you establish a second chance hiring policy it is important to avoid gossip or conflict so provide education around unconscious bias, collaboration, and diversity.

Second-chance hiring may not be the right path for every business. However, it could be a useful tool for you to attract and retain key talent during a staff shortage and support inclusive hiring. Don’t shut out potential!

If you are looking for innovative ways to improve your talent attraction and retention Pierpoint’s full-service RPO solution could be the answer. Talk to an expert today to discuss your talent needs.