Although employers tend to be reluctant to hire people with criminal records, especially those with felony convictions, government-provided incentives could help, according to new research published in the journal Criminology & Public Policy.
In particular, a $2,400 tax credit or $25,000 insurance against losses increased the willingness of hiring managers to hire applicants with prior records. Rehabilitation certificates also appeared to be beneficial.
“Our previous research in New York with the Department of Health showed that good things happen when people with prior convictions are hired: The new employees commit less crime, earn more money and employers are able to fill vacant jobs,” Shawn Bushway, the lead researcher and a professor of criminal justice at the University of Albany, said in a statement.
“But society benefits more than employers, so it makes sense for the government to offer employers modest incentives when the only thing keeping the employer from hiring the person is the criminal record,” he added.
In the study, the researchers conducted two experiments with a group of 1,000 hiring managers across various occupations and geographies.
In the first experiment, the hiring managers were asked to make decisions about hypothetical applicants who varied on eight attributes, including criminal record. Adding up to 14,000 decisions, the scenario corresponded to “traditional hiring,” where applicants’ criminal history was available at the outset.
In the second experiment, hiring managers considered picture-based vignettes that depicted tentatively hired employees who were later discovered to have records. Adding up to nearly 4,000 decisions, the scenario aligned with “Ban-the-Box” hiring, which requires employers to remove questions about criminal records from job applications and conduct background checks later in the hiring process.
In both experiments, the tax credit and insurance incentive reduced the hiring managers’ reluctance to hire applicants with criminal records. The incentives worked by compensating employers for hiring applicants with records, rather than trying to change employers’ perspectives about the job candidates and how they would perform on the job, the researchers wrote.
Second-chance hiring programs can strengthen the workforce, experts told HR Dive. The programs can help employers tap into a new talent pool, improve diversity and inclusion efforts and potentially earn a Work Opportunity Tax Credit.
Notably, second-chance hiring can also bridge labor gaps and break employment barriers, advocates told HR Dive. The programs can fulfill mutual needs by leading to less employee churn and lower recidivism.
Companies can incorporate second-chance hiring through inclusive HR practices and community partnerships, experts told HR Dive. Other best practices include looking beyond background checks, recognizing biases and identifying workforce development programs.
