By Christopher Watler
Low unemployment and exceptional job growth over the last 10 years have created a serious problem for employers. The U.S Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey reports that there are more job openings than there are people to fill them. This redistributes power in the employment market to workers, with competing organizations vying for the same candidates.
Even when employers are able to attract and hire employees, this imbalance continues to cause talent management challenges. According to the Workforce Institute’s 2019 Retention Report, there has been a significant increase in voluntary employee turnover in the last 10 years, and by 2023 35% of employees will choose to leave their jobs each year. This not only disrupts business operations, but also creates serious financial burden for employers; the estimated cost of losing a worker is about $15,000. When considering how these costs are amplified across your business, you may be wondering what you can do to improve hiring and retention at your organization.
With traditional talent pipelines tapping out, companies are considering ways to expand their pool of candidates. Many organizations turn to traditional staffing agencies, outsourcing the solution at a steep fee. While this model may work for some, others find it unreliable, overly transactional, or too expensive. Employers are starting to feel the financial and operational strain of high turnover, and the pressure to find a sustainable solution. However despite this pressure, there remains a large population of motivated, qualified candidates being overlooked. Every year, over 640,000 individuals return home from US prisons, and another 9 million are released from local jails. While US unemployment hovers around 4%, the unemployment of the nation’s returning citizens is more than 6 times that. More than 50% of persons returning from prison remain jobless a year after release. During the period immediately after release, many also face rearrest and a return to incarceration. This misalignment highlights an opportunity for companies to make the smart business decision to hire returning citizens.
Work with Justice-Involved Populations
Whether you are surprised to learn about this untapped talent pipeline, or you have already considered working with this population, you’re probably wondering how this would look at your organization. You may have some concerns. You might be unsure of your company’s policy on hiring justice-involved candidates. Or maybe you just aren’t sure where to start.
Diversifying your talent pool by hiring returning citizens supports your business and the community, offering a socially-minded solution to your company’s workforce challenges. Returning citizens are qualified and eager to work, and hiring this population can help you avoid the competitive talent acquisition market. Additionally, programs like the Work Opportunity Tax Credit and Federal Bonding Program provide tax credits and protective bonds, offering financial incentives and reducing the risk of working with a new talent pool.
To effectively take advantage of this opportunity, there are a few best practices to keep in mind that are consistent with successful inclusive hiring efforts:
- Establish Inclusive Policies & Practices
- Support Internal Education & Training
- Be Proactive in Hiring Returning Citizens
- Partner with Social Service Organizations
Establish Inclusive Policies & Practices
Your organization first wants to ensure you are complying with federal and local laws around hiring practices. Currently 13 states and many cities have “Ban-the-Box” laws which prohibit employers from asking about criminal history on a job application. Do you know if your organization is compliant with your state’s laws? Beyond legal compliance, your organization can design and implement inclusive hiring practices to ensure you are fair and equitable. For example, if you conduct background checks, establish quality assurance practices to ensure the data is correct. Reviewing your current practices and establishing policies that help returning citizens succeed is crucial throughout the talent life cycle.
Support Internal Education & Training
As an inclusive employer, it is important to foster a work environment in which all employees (formerly incarcerated or otherwise) are able to succeed. Increasingly, employees want to work for employers that have a positive community impact. Whether or not your organization already has some type of diversity and inclusion initiatives, it is important to offer your employees the opportunity to engage in anti-discirimnation and implicit bias training. These initiatives not only work to prevent biases in your hiring processes, but also help create an inclusive culture that aligns with the expectations of your workforce.
Be Proactive in Hiring Returning Citizens
If your organization wants to hire returning citizens, you must take steps to make this part of your hiring strategies. Think of your typical recruitment techniques when seeking new talent. You may attend hiring events and conferences, or post on targeted job boards. The same strategic planning applies when seeking a new workforce. Active participation in events focused on diversity and hiring returning citizens can help prepare your organization for a successful hiring process. This engagement, coupled with clearly defining your commitment to inclusion in your recruitment materials, will go a long way to making sure your efforts are successful.
Partner with Social Service Organizations
You do not need to be an expert in criminal justice to successfully work with returning citizens. There are many organizations with the mission of supporting the successful reentry of returning citizens around the country. Employment is just one of the many barriers facing returning citizens upon reentry to their communities, and as an employer it is important to understand what your employees require to succeed. By working with community partners, your organization can learn to successfully attract, train, and support candidates – and in turn effectively tap into an underserved, overlooked talent pipeline.
Organizations across industries are already promoting the success of their business and their communities by hiring formerly incarcerated individuals. Are you ready to join them in making a difference?
About the Center for Employment Opportunities
CEO works with employers nationwide to diversify hiring pipelines, address internal and external barriers, and serve as a partner along the journey to becoming an inclusive workplace. With over 30 years experience as an employer and advocate for returning citizens, CEO tackles hiring challenges while promoting the success of an underserved population. To learn more about CEO, please visit: www.ceoworks.org
Christopher Watler
Chief External Affairs Officer
Center for Employment Opportunities
www.ceoworks.org