Second-Chance Hiring: The Business Case for Fair-Chance Employment
By TaaSFlow
The Untapped Talent Pool
Approximately 77 million Americans — nearly 1 in 3 — have some form of criminal record. Blanket exclusion policies remove a massive portion of the potential workforce during a period of widespread talent shortages.
The Business Case
Companies with fair-chance hiring programs report:
- 82% of managers say fair-chance hires perform equal to or better than peers
- Lower turnover : Fair-chance hires stay 12-18% longer than average
- Higher loyalty : 85% report strong organizational commitment
- Tax benefits : Work Opportunity Tax Credit (WOTC) of $2,400-$9,600 per eligible hire
Best Practices for Implementation
1. Adopt Ban-the-Box Policies
Remove criminal history questions from initial applications. Evaluate qualifications first.
2. Individualized Assessment
When a criminal record surfaces:
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- Nature and gravity of the offense
- Time elapsed since the offense
- Nature of the job and its relevance
- Evidence of rehabilitation
3. Partner with Support Organizations
Work with reentry organizations that:
- Pre-screen and prepare candidates
- Provide ongoing support services
- Help with housing, transportation, and other barriers
4. Train Hiring Managers
Address concerns proactively:
- Share data on fair-chance hire performance
- Provide decision-making frameworks
- Create escalation paths for concerns
5. Supportive Onboarding
Fair-chance hires may need additional support:
- Assigned mentors
- Financial literacy resources
- Flexible scheduling for parole/probation requirements
- Clear communication of expectations
Industries Leading the Way
Major employers embracing fair-chance hiring:
- Manufacturing (60% of employers open to fair-chance)
- Construction (55%)
- Food service (50%)
- Technology (growing trend)
Getting Started
- Review current policies for blanket exclusions
- Train HR and hiring managers
- Partner with one reentry organization
- Pilot with 3-5 positions
- Measure outcomes at 90 days and 1 year
Fair-chance hiring expands your talent pool significantly. Combined with subscription sourcing , it creates a diverse pipeline that traditional approaches miss.
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