For the first time in recent history, the United States has more open jobs than people available to fill them. Many employers are having a hard time finding qualified applicants, begging the question: how are we defining qualified?
Traditionally, many employers have seen a criminal background as an automatic disqualifier, perceiving the risks to be too high. Since any new hire comes with risk, the question to ask when screening applicants is not whether there’s risk, but whether the risk outweighs the potential return.
Lowering Risk
What’s the level of risk involved in hiring someone with a criminal record? It turns out that some of employers’ most common concerns may not lead to as much risk as many would believe.
Workplace Misconduct
Although research indicates that employees with a criminal record are no more likely to be fired for workplace misconduct, the Federal Bonding Program can provide you an extra layer of protection. By enrolling in the FBP, employers are eligible for $5,000 worth of fidelity bond coverage for the first six months of a justice-involved employee’s tenure. Simply create an account and hire through our second chance job portal, and we’ll take care of getting you enrolled.
Negligent Hiring Lawsuit
Should a workplace incident occur, companies understandably want to avoid legal ramifications. Yet long-term data indicates that fear of negligent hiring lawsuits may be misplaced. According to the National Workrights Institute, only 92 decisions on negligent hiring lawsuits have been published in the last 28 years − roughly three decisions a year.
Employment discrimination suits, however, are significantly more common. In 2017 alone, the Equal Employment Opportunity Commission (EEOC) filed more than 60,000 suits regarding discrimination toward classes protected by Title VII of the Civil Rights Acts of 1964. Two of these protected classes are those affected by race and national origin discrimination, individuals whom EEOC has determined may be disproportionately impacted by hiring policies with blanket criminal record exclusions. In order to avoid this kind of lawsuit, EEOC recommends that hiring managers evaluate criminal histories on a case-by-case basis, taking into account the crime’s relevance to the nature of the job, as well as the time elapsed since the crime occurred. For instance, a former drug dealer may be prohibited from working at a pharmacy, but should not be prohibited from working in a warehouse.
Reaping the Returns
In addition to the obvious benefits of second chance employment for justice-involved individuals and their families, businesses, too, will experience a return on their investment in second chance employment.
Productive Employees
While studies on second chance employment outcomes are still relatively scarce, the existing body of research indicates that justice-involved individuals are often the most conscientious and productive workers, likely because they have more at stake and perceive they have more to prove. One study focusing on the military found that those with felony convictions were promoted faster and were less likely to be discharged. Another study surveying HR professionals and managers found that 67% of HR professionals and 82% of managers said the quality of their workers with criminal records is as high as or higher than those without records. A third study found that employees with criminal records are significantly less likely to quit their jobs, saving companies $746 in turnover costs per employee.
Work Opportunity Tax Credit
In addition to experiencing increased productivity and reduced turnover costs, companies that employ individuals who have been incarcerated in the past year are eligible for the Work Opportunity Tax Credit . This tax credit can provide companies up to $2,400 per justice-involved employee. Simply create an account and hire through our second chance job portal, and we’ll take care of getting your firm enrolled and credited.
Stimulating the Economy
In addition to providing benefits for individual companies, second chance employment stimulates the larger economy. Employment is the single most important factor in reducing recidivism, increasing the economic output of justice-involved individuals and eliminating the tax burden of keeping them in the criminal justice system. In fact, one study indicated that when 100 justice-involved individuals have consistent employment, their lifetime earnings increase by $55 million, resulting in more than $2.6 million in income and sales tax contributions as well as $2 million in taxpayer savings for every year they stay out of the justice system. Since people with felony convictions make up the largest single portion of the nation’s non-labor force-attached population, broad measures to employ them would be one of the most effective mechanisms to spur economic growth, decrease public assistance payments, and mitigate the looming baby boomer-induced strain on Medicare and Social Security.
Ready to begin reaping the returns on an investment in second chance employment? Click here to create an account and start hiring.