Yet another study confirms the advantages to companies of hiring previously incarcerated individuals.
The recently released report, Back to Business: How Hiring Formerly Incarcerated Job Seekers Benefits Your Company, was prepared by the Trone Private Sector and Education Advisory Council for the American Civil Liberties Union.
According to the report, the problem of joblessness among those who have spent time in prison or jail is immense and needs to be solved. More than 640,000 people are released from prison each year, and nearly 75 percent of previously incarcerated individuals remain unemployed a year after they’re released. And “joblessness is the single most important predictor of recidivism.”
This lack of employment by those who have been incarcerated has a dramatic effect on our national economy, reducing the U.S. gross national product by between $78 and $87 billion in a single year.
The report states that:
“Research by economists confirms that hiring people with records is simply smart business. Retention rates are higher, turnover is lower, and employees with criminal records are more loyal. Given the costs associated with turnover and recruitment, researchers have found that “employees with a criminal background are in fact a better pool for employers.”
The report includes case studies of several companies and what they have done to achieve fair chance hiring.
Company case studies highlighted in the report
Walmart – A case study of Walmart points out that the company has removed “the box” from its application forms and only runs a background check after a potential hire is given a conditional offer. The hiring manager and HR members are only aware of whether the applicant has been cleared for hiring and are not informed of the nature of their conviction(s).
Total Wine & More — Total Wine & More, with 127 superstores in 20 states, found that employees with criminal records had a 12 percent lower annual first-year turnover rate than those without. For cashiers it was 14 percent, merchandising employees 11 percent and wine assistants 11 percent.
eWaste Tech Systems — Richmond Va.-based eWaste Tech Systems created a comprehensive training program for the nearly 50 percent of its employees who have a criminal record. It also works with local workforce development center ResCare to provide services that these employees may need in their reentry efforts.
After showing what various companies have achieved, the report provides steps that others can take t0 create and maintain fair chance hiring:
- Ban the box on job application forms and postpone asking applicants about their criminal history until further into the hiring process.
- Consider each employee on a case-by-case basis, evaluating the nature of their crime and whether it’s related to the type of work they will be doing, as well as considering whatever rehabilitation efforts they have accomplished.
- Conduct a proper background check by asking for only those convictions relevant to the job applied for. Choose a reputable agency, one certified by the National Association of Professional Background Screeners (NAPBS), if possible. (The report includes a list of questions to ask an agency to ensure proper information is gathered.)
- Make sure to comply with all state and federal laws and regulations, including Title VII of the Civil Rights Act of 1964, the Fair Credit Reporting Act and various state and local Ban the Box statutes that may apply to your area.
- Be proactive in reaching out to qualified job seekers who might have criminal records.
- Create a process for dealing with applicants who have criminal records, and train hiring managers in this process.
Follow these steps and join a growing list of employers – more than 300 signed the Obama White House Fair Chance Hiring Pledge in 2016 – who are improving staff retention rates, and ultimately their bottom line, by hiring formerly incarcerated individuals.