Unlocking the Potential of Justice-Impacted Talent

April has been designated Second Chance Month in the U.S. in recognition of the importance of supporting people’s successful reentry into society and the workforce after incarceration. Amid ongoing workforce shortages, the potential benefit of supporting these community members is more significant than ever.

As the U.S. economy recovers following the pandemic-induced recession, employers are scrambling to fill almost 10 million vacant jobs. At the same time, more than 70 million (1 in 3) American adults have some form of criminal record, which creates substantial — and often completely unreasonable — barriers to employment. Businesses large and small are increasingly looking to tap into the justice-impacted workforce to meet demand while becoming more inclusive. Following the murder of George Floyd in 2020, there has been an ongoing reckoning for the U.S. justice system, and there remains widespread opportunity to combat the vast inequity mass incarceration perpetuates. Helping people with records bridge successful pathways to meaningful work is a way to do both.

Such efforts can do more than just offer employers access to a diverse and underutilized talent pool. In the United States, 1 out of 4 Black men can expect to spend time in prison — resulting in Black males having the lowest labor force participation among men. Helping people with records join the workforce can help combat racial inequity in the U.S., honor commitments and public pledges to inclusion and social justice, and create safer communities.

Research has shown that access to good jobs is a critical factor in reducing recidivism rates; people who remain unemployed two months after reentry are twice as likely to reoffend. In addition, justice-impacted employees have been found to have higher retention and lower turnover rates than the general population, resulting in significant recruitment cost savings for companies. Furthermore, 85% of HR leaders have reported that second-chance hires perform as well as or better than employees without criminal records, suggesting that hiring formerly incarcerated people can actually boost productivity within companies.

Employers are taking various measures to increase access to employment for justice-impacted people. Companies that adopt second-chance hiring (SCH) practices and amend their application and interview processes to consider justice-impacted individuals can more effectively open themselves up to this marginalized group. Household names like Walmart, JPMorgan Chase, and The Home Depot have adopted such measures and seen the benefits. JPMorgan CEO Jamie Dimon has said that “providing a second chance will give people dignity and allow them to provide for their families, and it helps companies like ours expand the number of people we hire to ensure we get the best talent.”

Some companies have gone even further, partnering with other organizations to provide meaningful career opportunities for individuals who are at higher risk of incarceration. For example, last year the Responsible Business Initiative for Justice (RBIJ), an international nonprofit, launched Unlock Potential, a Walmart-funded hiring program that works with major employers, including Delta Air Lines, Ben & Jerry’s, and AutoZone, to provide meaningful career opportunities for vulnerable young people. Through its work, the program helps businesses mitigate the often lifelong consequences of a criminal record by preventing justice-system involvement before it starts.

Despite some progress, it’s clear that more fundamental, systemic change is required to reduce the workforce barriers for individuals with criminal records. Companies are leveraging their influence to drive reform through measures such as clean slate legislation, which automatically seals eligible criminal records after a certain period.

No constituency is more important to lawmakers than employers and investors, and the 2022 Edelman Trust Barometer revealed that corporations are more trusted than government or the media. By publicly supporting legislation efforts, businesses can encourage lawmakers to prioritize these issues. In Colorado, for example, more than 30 businesses came together in May 2022 to show their support for the Clean Slate Act through public signed statements, press conferences, social media posts, and op-eds. Thanks in part to these efforts, the bill was signed into law, granting relief to an estimated 1.3 million people across the state.

Overcoming Obstacles to Embracing Justice-Impacted Talent

There are still barriers preventing companies from getting involved in second-chance hiring. According to RBIJ’s research, there are three central obstacles: Candidates may lack necessary skills (such as digital literacy), employers may be unable to identify justice-impacted candidates for open positions, and companies may have cumbersome internal processes or necessary policy changes. The solution to all three challenges lies in partnership. By partnering with community organizations and workforce development nonprofits that work with this workforce segment, companies can access a pipeline of quality and qualified employees and receive the training and technical assistance necessary to adjust their hiring infrastructures.

These partnerships can also yield invaluable opportunities for peer-to-peer exchange, where interested employers can learn from those that have successfully implemented SCH programs. Unlock Potential is among the programs designed to address such needs. The national nonprofit Persevere, which cofounded Unlock Potential with RBIJ, matches participating employers with community-based organizations to identify talent and ensure that recruits have the wraparound services they need in order to be successful in their employment journey.

Businesses often hesitate to support reform movements due to three central concerns: not knowing how and when to speak up, reticence to engage on politically charged issues, and the fear of being seen as performative. In the aftermath of George Floyd’s murder, thousands of companies posted statements of support. However, the backlash against those that were seen as insincere was swift, and many corporations have been reticent to speak out on justice issues ever since. To address these concerns, intentional partnerships with campaign organizations on the ground can provide businesses with the necessary information and proximity to speak out with authenticity and credibility — and avoid missteps. They can also help companies neutralize any political backlash by framing the proposed reforms for what they are — common-sense solutions with bipartisan backing. This enables businesses to use their political and social capital to create real change and break down workforce barriers for justice-impacted people.

The rewards for these efforts are becoming increasingly clear. SCH employers benefit from deeper, wider, and more diverse talent pools at a time when they need them most. The quality of recruits is also yielding fiscal returns. MOD Pizza founder Scott Svenson wrote in 2022 that his company has consistently found that “employees who are justice-involved are loyal and productive team members — with the grit and resilience we value. This has resulted in reduced turnover, higher retention and higher internal promotion rates, which has in turn saved thousands in recruitment and training costs.”

The passage of clean slate legislation in 10 states has also resulted in widespread benefits, including higher employment rates, increased earnings, and lower recidivism rates. For example, researchers in Michigan found that a year after record clearance, people are 11% more likely to be employed and on average earn more than 22% higher wages. With all this in mind, it’s unsurprising that, according to recent polls, 80% of small businesses believe that clean slate policies will open job applicant pools, expand workforce productivity and diversity, and save tax dollars.

The rewards of justice-impacted talent are clear and urgently needed. Partnerships are the key to unlocking them.