Here's One Way To Stop The Great Resignation

Now is the time to reevaluate our hiring practices

We’ve all faced significant changes and challenges brought on by the pandemic. As we slowly move back into some semblance of normalcy, the business world has one big mountain left to climb: the Great Resignation. After three consecutive record-breaking months of employees leaving their jobs last year, businesses in nearly every industry are still scrambling to fill open roles.

According to the Labor Department, a record 4.5 million Americans quit their jobs in November. This was preceded by the 4.4 million workers who exited their jobs in September and 4.3 million in August.

A number of factors are contributing to talent shortages during the Great Resignation. One significant issue is that older workers are leaving the workforce altogether. Analysis by the Pew Research Center found that about half of U.S. adults 55 and older are now retired as of Q3 2021. Some may eventually return to the workforce, but many will not. With so many open opportunities, job seekers are empowered to leave jobs they don’t want to pursue opportunities they do, leaving many organizations wondering how to fill those open roles.

This leaves HR leadership with two important questions to answer:
 

These aren’t new questions, but the answers we come up with now will be vital to helping us navigate the Great Resignation and build stronger, more resilient organizations. And there isn’t one right answer to either question. Solutions will vary from one organization to another. However, one concept that can be applied to any company is improving diversity, equity and inclusion (DE&I).

Building an inclusive workplace where people feel welcome, valued, and can meaningfully contribute to the company culture should be a goal for every leadership team. It is one of the best ways to attract and retain employees long-term. There are various ways to go about bringing in incredible talent, but I’d like to offer an option many have not considered: second-chance hiring.

Second-chance hiring refers to the practice of hiring individuals who have a criminal record. About one in three Americans has a felony conviction. That’s 70-100 million people with varying talents, skillsets and backgrounds that businesses can’t afford to overlook.

The current unemployment rate for the entire United States is 4 percent, but the rate is much higher for workers impacted by incarceration. According to the Prison Policy Institute, unemployment was at a rate of 27 percent for individuals impacted by incarceration before the pandemic. It’s been worsening since the pandemic hit.

For those impacted by incarceration, finding employment is a significant challenge. Many companies ask about a criminal record on applications or during interviews, and it’s impossible for these individuals to pass a background check if one is required. Despite 37 states requiring employers to remove criminal-history questions from employment applications with Ban the Box laws, justice-impacted individuals continue to find themselves without jobs or a reliable means to support themselves. With so many opportunities available, now is the time for us to reevaluate our hiring practices.

Over the past two years, DE&I initiatives shot toward the top of many companies’ priority lists, and 76% of job-seekers and employees said that they consider the diversity of the workforce when evaluating job offers. DE&I as we usually think of it is focused on factors like gender, race, disability status, military service, and the LGBTQIA+ communities. It’s time for inclusion to go a step further to include those with a criminal background as well. The goal of a strong DE&I program is to ensure that all employees have a fair chance at success within your organization and a seat at the table. Workers impacted by incarceration can’t have a seat at the table when they can’t even get into the building.

By casting aside those impacted by incarceration, we are leaving an incredible amount of untapped talent and potential on the table. With both DE&I objectives and the multitude of roles that have opened because of the Great Resignation, it’s smart business to consider these individuals when hiring.

The manufacturing industry is helping to lead the way. Employers in that sector are expanding second-chance hiring opportunities, proving how mutually beneficial those opportunities can be for both justice-impacted employees and the businesses willing to give them a chance.

What’s more, a study using data from the U.S. military suggested that individuals with lower social class origins are less self-centered, which sets them up to be more effective leaders. And people from lower socioeconomic classes tend to have more empathy and treat people more equitably than those from privileged backgrounds. Hiring talent from the justice-impacted community is a way for companies to add new perspectives and to better position themselves for future success.

If the Great Resignation has a silver lining, it’s that massive disruption has given businesses a reason to innovate and expand their hiring practices. Corporate leadership, and especially HR organizations now need to think outside the box. We have a fresh opportunity to explore new avenues for bringing in qualified talent. The benefits of second-chance hiring go beyond just social good. It also makes great business sense. With such an upheaval in the job market, tapping into a pool of overlooked talent can be advantageous to your organization.

I have the unique privilege to lead HR for a company that employs many people impacted by incarceration. I see the transformative power of second-chance hiring every day. Both our inbound and outbound engagement centers are staffed by some of the most talented, loyal, brilliant people I have ever met. I can tell you from my own experiences that when you purposely exclude this population, you’re missing out on great talent. The positive outcomes I have seen us achieve can be replicated, but that requires employers to change their policies along with their mindset.

It can be hard to know where to start. A great first step is to engage with your community and organizations that focus on workforce development and reentry for second-chance talent. By doing so, you may find some of your most dedicated and motivated new employees.

To stay competitive, businesses must continuously adapt and innovate. As leaders, we drive the changes that set our organizations on a course that will determine our future success. The Great Resignation is a big mountain to climb, and we are not yet at the summit. Businesses that want to not only survive, but thrive going forward can’t afford to overlook the business, societal and economic benefits of second-chance hiring.