Are Employers Overlooking a Talent Pool?
The answer is yes. In fact, One in three working-age Americans has a criminal record, making them one of the largest untapped talent pools in the country. Yet barriers to employment leave many unemployed or underemployed, costing the U.S. economy an estimated $78 billion to $87 billion each year.
That is why the Texas Association of Business Foundation launched the Texas Second Chance Employers Coalition in 2021. The coalition exists to provide resources, share best practices, and connect employers interested in learning how second chance hiring can strengthen their workforce while expanding opportunities for qualified Texans.
The business case for second chance hiring is increasingly difficult to ignore. An analysis by the MIT Sloan School of Management highlighted the results of Kelly, a global workforce solutions company that connects nearly half a million people with work each year, and its second chance hiring initiative. Through a pilot partnership with Toyota Motor Manufacturing, the company expanded the plant’s talent pool by 20 percent, increased workforce diversity by 8 percent, and reduced turnover by 70 percent.
More broadly, Kelly reported that employers participating in its second chance hiring program experienced 25 percent higher fill rates and 2.7 percent lower turnover than employers without similar hiring practices. At a time when employers across Texas continue to face persistent workforce shortages, second chance hiring is proving to be more than a social initiative. It is a smart business strategy backed by measurable results.
Leading employers including AT&T, JPMorgan Chase, Union Pacific, Walmart, and many more have demonstrated what is possible by implementing successful second chance hiring initiatives. In fact, JPMorgan Chase has made second chance hiring a meaningful part of its workforce strategy, with nearly 10 percent of U.S. hires over the past five years coming from individuals whose records had no bearing on the positions they filled.
The State of Texas is also taking steps to strengthen the connection between reentry and employment. As part of its 2030 Vision, the Texas Department of Criminal Justice has set a goal for 95 percent of work-eligible individuals to secure meaningful employment before release. TDCJ is working toward that goal by expanding workforce training and industry-recognized certifications, hosting Career and Skills Expos with second chance employers, coordinating pre-release hiring and using tools such as Website for Work to connect qualified candidates directly with employers.
The Second Chance Employers Coalition hosted its inaugural event in 2024, where Jeffrey Korzenik, chief economist and bestselling author of Untapped Talent, served as the keynote speaker and challenged business leaders to rethink how they define talent. Korzenik has made a compelling business case for second chance hiring as a competitive workforce strategy. His research demonstrates that employers who thoughtfully implement second chance hiring programs often find employees with exceptional grit, determination, persistence, and loyalty.
“We have to look to those we’ve overlooked,” Korzenick said. “Second chance hires will walk through walls for their employer. In general, second chance hires stay with you longer and care deeply about doing a good job.”
As Texas employers continue searching for workers in an increasingly competitive labor market, this message remains more relevant every day: workforce is a business issue, and second chance hiring is one solution that deserves a seat at the table.
This year, the TAB Foundation is renewing its leadership of the Texas Second Chance Employers Coalition as part of a broader strategy to strengthen Texas’ workforce. As demographic growth slows and workforce challenges become more complex, building a resilient Texas economy means ensuring employers can access every qualified source of talent.
Today’s workforce challenges cannot be solved in silos. Whether the conversation is education, workforce pathways, immigration, childcare, veterans, or second chance hiring, each represents a critical piece of building the talent pipeline Texas employers need to remain competitive. By bringing these conversations together, the Foundation aims to help employers identify practical solutions and learn from one another.
We invite employers across Texas to join the coalition and help grow this movement. Whether your company already hires justice-involved individuals or is simply interested in learning more, your voice matters. By sharing best practices, educating your peers, and encouraging your business networks to explore second chance hiring, employers can help unlock an often-overlooked talent pool while strengthening Texas’ workforce for the future.
To learn more, please contact me at chelsie@txbiz.org.
–Chelsie Kramer, Executive Director, Texas Association of Business Foundation
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