The Power of Second Chances
MIT Sloan School of Management recently hosted CEOs and luminaries from prestigious companies like Nike and Intel for a conference called "Writing the Code: Second Chance Hiring", where the spotlight was on the many values and virtues of hiring employees with criminal records. The event was a collaboration between the Sloan Office of Diversity, Equity, and Inclusion and the Career Development Office, and its aim was to help reframe the narrative around people who have served time in prison.
The event was held as part of the commemoration of April as Second Chance Month - an initiative announced by the White House to help “people returning to their communities from jail or prison have a fair shot at the American dream.” The movement has increasing urgency, as over 70 million people in the U.S. have a criminal record and usually face daunting barriers to reintegration due to background checks. Statistics show that 9 out of 10 employers require them, and when a record shows up, the chances of a second interview are cut in half. Thus, people with a criminal background often remain unemployed up to a year after release, increasing reoffending rates.
But the benefits of hiring people who have been impacted by the justice system are becoming increasingly apparent. Companies that have second chance policies in place report equal or increased levels of productivity compared to other employees, along with high levels of loyalty and commitment. One Ohio company, Nehemiah Manufacturing, employs about 170 formerly incarcerated workers, making up 70% of its workforce. Nehemiah has a turnover rate of 15%, much lower than the 40% average for its industry. They also offer company-backed social services, which they credit as a ‘game-changer’ to removing barriers for their employees to smoothly re-integrate to society. These services include affordable housing options, first-time homebuyer matching programs, tax filing assistance, free transportation services, educational programs, an in-house AA group, and regular ‘grill-outs’ to build community.
Their CEO, Dan Meyer, claims these services are essential for companies undertaking this initiative. “When you treat people with love, dignity, respect, you get twice that in return,” says Meyer. “That means people showing up on time, highly motivated, highly productive.”
Nehemiah’s success shows that when people do get a second chance, especially those who’ve been incarcerated, they tend to grab it and not let go.
It’s hard to picture the ‘second chance’ movement, having as much momentum behind it without the involvement of MIT Sloan student Daniel Dart. Dart was the subject of a lengthy profile on Yahoo! Finance a few months ago, and his story of going from being a homeless teenager with a rap sheet for shoplifting and carjacking to holding two degrees from the London School of Economics and starting his own venture capital firm has taken the world of finance by storm. He’s currently enrolled in the MBA program at MIT, and his charisma and steady ascent to a successful career in finance embody many of the tenets that the ‘second chance’ movement is emphasizing.
The ‘Writing the Code’ conference that Dart helped to organize featured discussions led by 22 CEOs, founders, civic leaders and academics, all galvanized by the prospect of integrating more second-chance policies into the business world. They’re convinced that these policies will address a crucial economic need by tapping into a diverse talent pool who have traditionally been sidelined. The barriers that remain in place perpetuate a cycle of economic disenfranchisement that costs the U.S. economy up to $87 billion annually.
Many of these discussions highlighted the boosts to corporate brands that have come with incorporating these policies. 81% of consumers report support for businesses that employ formerly incarcerated individuals, believing they are making a positive societal contribution.
The Second Chance Business Coalition offers further research into the benefits of these policies and the logistics of implementing them. I hope that businesses continue to find the courage to challenge the traditional narratives surrounding the employability and productivity of ex-felons. By advocating for them, we not only help to close the skills gap rampant among most industries, but we also contribute to reducing recidivism and strengthening our communities.