Second Chance Hiring Programs Flourishing in the Labor Shortage

Second Chance Hiring Programs Flourishing in the Labor Shortage
November 8, 2022

Due to the labor shortage plaguing employers, many companies have become more open to employing workers who have previously served in prison. Small and large businesses have begun recognizing the benefits of hiring these workers. For example, not only do these employees fill hiring quotas in a tight labor market, but they also reduce social inequity.

Finding steady employment can be an immense challenge for those with prior convictions. In previous years, job applications near-universally included questions about whether applicants had convictions on their records. Thankfully, ban-the-box movements have worked to prohibit these questions in many parts of the country, allowing for second-chance hiring.

However, the stigma of having convictions continues to hamper this population’s ability to find employment. In 2018, a report from the Prison Policy Initiative revealed an unemployment rate greater than 27% for the previously incarcerated. Compared to the 3.5% national unemployment rate reported in September 2022, the Bureau of Labor Statistics has made it clear that this population has a significant unemployment issue.

However, there may be a sliver of hope for the current labor shortage. According to a January survey by the Society for Human Resources Management, 46% of the 900 participating human resources professionals began recruiting more individuals with criminal records than the previous year.

This revelation is a crucial development. According to the Justice Department, approximately 600,000 individuals are released annually from state and federal prisons; unfortunately, many more acquire arrest records that can similarly harm employment prospects even with dropped charges.

Regardless, many of the largest companies in the US continue to recognize this enormous labor pool. For example, the largest bank in the US has a record of hiring roughly one in ten employees with criminal records.

Furthermore, earlier this year, one of the country’s largest railroad operators began hiring previously incarcerated individuals. This change in hiring standards has come in response to many railroads struggling with service issues caused by a labor shortage.

With more employers following suit every month, there is no better time to begin a second-chance hiring program. One of the best ways to start safely implementing such a policy is to partner with an experienced background screening provider. Such a provider will help deliver the knowledge and expertise necessary when hiring those with criminal records.

Pre-employ makes background checks easy and reliable. Speak with a compliance expert today.

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