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Fair chance hiring: An answer to your talent shortage?

CWS 3.0 - Contingent Workforce Strategies

Fair chance hiring: An answer to your talent shortage?

Katherine Alvarez
| July 30, 2024
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Second chance hiring programs warrant a second look from workforce managers as the concept gains acceptance, even among the largest brands in the US.

“Jobs bring dignity and help lay a foundation for stability,” Jamie Dimon, chairman and CEO of JPMorgan Chase & Co. and co-chair of the Second Chance Business Coalition, said in a press release. Launched in April 2021 with 29 members, the coalition now comprises 50 large, private-sector employers. Membership in the organization signals a commitment to second chance hiring and career advancement practices, according to the organization.

“Lowering the barriers to employment so that more Americans can access a second chance to participate in the workforce is good for families, communities and the economy,” Dimon added.

Big Talent Pool

The concept can also benefit contingent workforce managers. The pool of potential workers with justice-impacted backgrounds is deep, and oftentimes their infractions have no relevance to the work that needs doing.

According to SCBC, more than 90 million Americans, or roughly one-quarter of the population, have a criminal record. In addition, a December 2023 report by the US Chamber of Commerce found 9.4 million job openings but only 6.3 million job seekers — a labor gap of 3.1 million, one of the largest workers-to-openings shortfalls ever recorded.

“Second-chance hiring is no longer an option for long-term growth; it is a necessity,” write Cheri Garcia and James Jackson in a report by Cornbread Hustle, a for-profit staffing firm specifically for justice-impacted people coming out of incarceration.

Meaningful Work

While fair chance hiring is often thought of as an option for industrial staffing and labor-intensive tasks, companies requiring higher-level skills such as IT and professional positions can also benefit, explains Ken Oliver, VP of corporate social responsibility at background screening firm Checkr, which operates a program for its own internal hiring and advises clients on the topic. He aims to bring the concept beyond entry-level roles.

“When I talk to a lot of executives, I say, ‘Let’s talk about how we can get people in your role.’ How we position people to have that type of trajectory for a career is the main goal because if we want people to stay out of prison, and we want to keep the communities healthier, more vibrant and just a little bit safer, we need to get people on the pathway to the middle-class economy. That’s the great equalizer,” Oliver says.

Providing a felon with a job for $75,000 a year changes their whole world, he explains.

“They’re teaching the little league. They’re in the house before the sun goes down. They’re the first ones at work,” Oliver says. “They now have a stake in the game, and that’s really what it’s about: marginalization. When you’re in the center and you feel part of the belonging, you’re great. When you’re on the fringes and you feel like there’s no place for you in society and you can’t get ahead economically, then you start to do these other things and make bad choices.”

Kelly Services is tapping fair chance hires for internal roles and as talent to place with clients. Its Kelly 33 program — part of an Equity at Work initiative to remove barriers and create equitable access to employment — started with internal employees. However, so far this year it has also filled over 600 roles with 22 clients. And while “the path of least resistance” is usually manufacturing, Marvin Figaro, director of DEI strategic partnerships at Kelly, sees increasing interest in different types of roles.

“We have some IT roles sprinkled in there,” he says. “And we are meeting with a current client who has piloted Kelly 33 in the industrial space and manufacturing space, and now they’re expressing some interest in bringing entry-level IT folks into their organization as well that could open up some new avenues.”

Changing the Narrative

Most people with records suffer significant barriers to economic mobility, according to research released by the Alliance for Safety and Justice. Its survey of people with records found that nearly two-thirds, 63%, faced difficulty attaining a job, maintaining employment or making a living after conviction or incarceration. For people whose most serious conviction was a misdemeanor, nearly half, 47%, cited difficulty attaining a job, maintaining employment or making a living.

And time doesn’t seem to help. ASJ’s research also found that seven in 10 people with a record, 69%, were last convicted or incarcerated more than five years ago. But despite varied legislation, most have been unable to access record clearance. And those who have had their records cleared found the process difficult: More than three-quarters of people with a past conviction, 76%, had not removed or cleared any conviction from their record. Of those surveyed who were able to remove or clear a past conviction from their record, 51% reported that they found it difficult to do so.

“People with criminal records are the solution to the labor shortage,” writes economist Jeffrey Korzenik in his 2021 book, Untapped Talent: How Second Chance Hiring Works for Your Business and the Community. “From a purely quantitative perspective, the numbers are compelling. The sheer quantity of people who have a record suggests that we should question the wisdom of automatically excluding job candidates with records.”

Look for a follow-up CWS 3.0 article discussing how to set your fair chance hiring program up for success.