The Wall Street Journal recently reported that a contingency of U.S. companies— banks, pharmacy chains, and transportation firms—were easing hiring restrictions against applicants with criminal records. They did so to address societal inequities and find high-quality talent amidst today’s pervasive labor shortage.
This shouldn’t be surprising, given the severity of the shortage in the labor market today. As it stands, if every unemployed American found a job today, the country would still have an astounding four million unfilled positions, according to a 2022 report from the U.S. Chamber Of Commerce.
As a leader working to empower those entangled in the criminal legal system by strengthening public defense, I find this reversal of hiring restrictions a step in the right direction. But it shouldn’t take a long-term labor shortage for savvy business leaders to consider well-qualified, formerly incarcerated people for open roles.
The benefits of inclusive hiring practices
Of managers who adopted inclusive hiring practices, 82% reported that the value new employees with criminal records brought to their organization were as high as or higher than that of workers without records, according to a survey by the Society of Human Resources Management. Once hired, previously incarcerated employees exhibit lower turnover rates, according to a study published in the IZA Journal Of Labor Policy. In 2017, retail giant Kroger introduced a program working with nonprofit organizations to provide jobs for the formerly incarcerated. The program had a retention rate of 93% after 18 months.
These statistics show that deciding to hire those impacted by the justice system is not only good for society, but also good for business.
Fighting the stigma and misconception
That said, formerly incarcerated people are disproportionately left behind by America’s hiring apparatus, as evidenced by our current 27% unemployment rate amongst formerly incarcerated people (in which women and people of color are disproportionately impacted). And amidst the Fed’s relentless push to erode the labor shortage and the latest wave of hiring freezes and staff cuts announced at high-profile firms like Amazon and Lyft, I fear matters are only getting worse. There’s no reason to wait to take action and promote equitable hiring and smart business strategy by relaxing hiring restrictions against people with criminal records.
Although 75% of HR professionals report having hired someone with a criminal record, the stigma-fueled barriers that remain in place are extensive. Near-universal discriminatory background checks and mandatory criminal record disclosures in early rounds of applications and interviews are the main drivers perpetuating hiring inequities. For businesses, enforcing these systemic hurdles means incurring additional expenses and cutting their profit margins.
A common argument against hiring those with a criminal background is the perceived risk they pose to their employer. But a 2009 report from Carnegie Mellon found this misconception is entirely unfounded—after five years of no new arrests, an individual with a criminal record poses no greater risk of rearrest than the general population. Alternatively, the societal cost of not empowering formerly incarcerated individuals to rejoin the workforce is quite high. Research—as well as the clients we meet every day in my line of work—has shown that opening doors to gainful employment for those reentering society is one of the best tools we have for reducing recidivism rates.
The need for systemic change
There are wonderful organizations, such as FreeWorld, which secures employment paying $60,000 to $120,000 for 98% of its graduates within just a month of them leaving jail or prison, that have discovered the magic that is unlocked when formerly incarcerated people are granted meaningful work opportunities. But these sorts of fantastic organizations can’t bring about systemic change alone. We need action in C-suites across the country and at the federal level to solve the discarding of immense human potential.
Business leaders must get behind the Ban the Box movement—which strives to prohibit potential employers from asking about a person’s criminal history in a written job application and has gained traction in many states. If operating in a state that has not taken steps to Ban the Box, leaders would be wise to take matters into their own hands and Ban the Box within their own organizational hiring practices.
Leaders should also push to ensure similar measures pass at the federal level wherever within their power. In addition, they can make progress by considering ways to intentionally restructure their labor force to attract folks returning home from prison.
Of course, nuance is critical here. It’s rhetorically easy to argue that someone’s prior offense should bar them from jobs related to that offense, but it’s also important to recognize that people grow and change over time. It’s also important to acknowledge that plenty of people may be dangerously wrong fits for the job they’re seeking, even without any kind of record.
As I’ve learned from my work with Partners for Justice, when you take the time to evaluate someone with a criminal record’s full humanity and invest in their future, the untapped potential for positive outcomes is often immeasurable.
Relaxing hiring restrictions against people with criminal records is one of those rare business measures that simultaneously represents doing what is right for your business and society.
It’s about time leaders took notice.
Emily Galvin-Almanza is the cofounder and executive director of the nonprofit Partners for Justice.
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