Why Fair-Chance Hiring Is Good for Business During Economic Uncertainty

Editor's note: Posts published on From the Workplace are written by outside contributors and do not necessarily reflect the view or opinion of SHRM.

In a period of great uncertainty, it is helpful to remember there are some basic economic goals that everyone can support, one of which is access to opportunity.  Regardless of the tools we use to get there, an economy where everyone who is both qualified and ready for employment can participate is a victory for all: businesses grow, consumer confidence rises, the economic strain on our communities is greatly reduced, and the workers who are the bedrock of our economy can build careers that support themselves and their families.  

So, it is worth noting that there is one very large segment of job seekers in the U.S. that is systematically overlooked. Approximately 80 million Americans — almost a quarter of the U.S. population — have at some stage in their lives, obtained a criminal record that could potentially trigger a red flag when applying for employment, housing, or credit. Blocked from the mainstream economy, these individuals are unable to build a financial cushion for themselves and their families, and employers miss out on a valuable resource. 

The concept of “fair-chance hiring” — offering employment to individuals who may have a past conviction — is not a new idea. Many cities and states have now implemented “Ban the Box” rules on applications for employment, which is a great first step. But final offers of employment are almost always contingent on the completion of a criminal background check, and far too many offers are automatically rescinded if the report reveals a record.  This has a cost estimated to be upwards of $80 billion a year. 

Overcoming Barriers to Employment with Fair-Chance Practices

However, there is an alternative approach. By taking a closer look at each individual applicant, rather than treating them as a singular category, it is possible to identify which candidates have the skills and aspirations that make them suitable for a particular role.

Asking a few common sense questions (ex. How old is the candidate and how long has it been since the conviction occurred?), looking for tangible evidence of character and work ethic (ex. active engagement in the local community), and focusing on the successful completion of rigorous educational, vocational training, or apprenticeship programs make it easy to distinguish candidates from one another.  

Clearly, employers have a duty to protect their customers, their staff, and their reputation, but no hiring decision is without risk. The better question is whether the job candidate with a record truly represents any greater risk than others who have applied.  In our experience, they do not — but blanket assumptions about risk, and other decision-making shortcuts often lead hiring managers to over-exclude otherwise suitable candidates without even recognizing it.

Even within companies that have expressed strong support for fair-chance hiring, there is often a palpable tension between talent teams who are trying to create new employment pathways, and compliance officers who prioritize protecting the brand — and no one is ever penalized for saying no. 

The Economic Advantages of Fair-Chance Hiring

Business leaders who are serious about their corporate citizenship need to create a company culture where opportunity for all is a priority, not simply a statement of intent; and a system where talent and legal/compliance teams are fully aligned — where individual hiring managers making well-informed decisions are well-supported, and where successes are applauded. 

A survey by the Society for Human Resource Management revealed that more than 80% of managers who had hired individuals with a record felt that these employees performed as well or better than workers without records. This is the kind of message that should be shared — and those supervisors who created opportunities for those individuals to advance should be acknowledged for their efforts so that this behavior becomes the norm. 

By removing unnecessary barriers to employment, we create safer communities and a clear path toward upward mobility. All it takes is a change in mindset — a willingness to look beyond the labels and abandon blanket assumptions about a very large and loosely defined category of people. Fair-chance hiring is a win for employers, for job seekers, for families, for communities, and for the economy. Why stand in the way of a good thing? 

--

Dr. Alyssa Lovegrove is a teaching professor at Georgetown University’s McDonough School of Business and the executive director of the Georgetown Pivot Program — a professional development and transitional employment program delivered by Georgetown faculty in partnership with the D.C. Department of Employment Services. Christopher Watler is executive vice president of the Center for Employment Opportunities (CEO), the nation’s largest provider of reentry employment services for justice-involved individuals.