By Becca Tonn, Pikes Peak Workforce Center
Southern Colorado has weathered the economic downturn far better than many regions nationally. Unemployment is still low, hovering around 4%, while companies are thriving. In fact, many businesses face hiring and retention challenges rather than imminent closure.
But the flip side of this proverbial economic coin presents greater challenges than one might initially anticipate. Numerous reports show the costs of high turnover or operating with minimal staff equate to lost productivity and lowered employee morale.
Adding to that dilemma, Gallup reports that more than half of currently employed workers are actively seeking a new job.
Replacement of leaders and managers costs nearly 200% of their salary, while for technical roles or frontline staff, that proportion is 80% and 40%, respectively.
With nearly 8.1 million job openings (U.S. Bureau of Labor Statistics, published Jan. 7, 2025) in the U.S., and only 5.5 million people not in the labor force who want to work, we are at an impasse.
What’s a business owner to do?
Let’s start by considering alternative talent pools in our region, such as justice-involved individuals – anyone who has interacted with the criminal justice system as a defendant. Their unemployment rate hovers at 60% or higher, and many of them are desperate to find jobs and prove their worth. While other staff may have an eye on the exit door, “second chance” employees often prove to be very loyal and hardworking.
According to research from Society for Human Resource Management (SHRM), 85% of human resource leaders report that second chance hires perform as well as or better than employees without criminal records.
Research has also shown that justice-involved individuals often demonstrate higher retention rates and lower turnover, which equates to significant cost savings for employers. Simply stated, “fair chance” employees tend to be very grateful to have a job and committed to the company that hired them.
Largely untapped talent pool
In addition, U.S. Chamber of Commerce reports show that one in three American adults have a criminal record. Of course, that number includes people who have been convicted of misdemeanors or felonies and those on probation or parole. But, socially, the implications to our society are enormous.
“Without imminent employment opportunities, recently released individuals are likely to return to incarceration,” according to USChamber.com.
With the ripple effect, companies in Southern Colorado can improve economic prospects for individuals and families, increasing the financial, emotional and moral health of our neighborhoods, our communities, our cities as well as boosting their own bottom line.
Help with the hurdles
If the thought of this intimidates an employer, it’s important to know that the federal government offers safety nets for businesses willing to take a chance on a fair chance employee.
- Work Opportunity Tax Credit (WOTC) – Federal tax credit is available to employers who invest in “American job seekers who have consistently faced barriers to employment”
- Federal program bonds – Federal bonds that protect an employer against losses caused by the fraudulent or dishonest acts of the bonded employee. Employers receive these bonds free-of-charge as an incentive to hire these applicants. (Each bond has a $5,000 limit with $0 deductible and covers the first six months of a selected individual’s employment.)
At the Pikes Peak Workforce Center, our Business Relations team can answer questions about having an honest and transparent conversation during the hiring process, as well as offer guidance for onboarding, and resources to provide training.
What will your clients think?
Americans, generally, are kind hearted and care about our communities and making the world a better place. These days, many people buy their products and services from companies that are socially responsible and have a record of community involvement and giving back. Being open-minded and fostering inclusivity are hallmarks of many of your current and future customers.
Additionally, 93% of employers who have hired justice-involved individuals say it has enhanced their reputation, according to SHRM.
National success stories
Ben & Jerry’s, the ice cream moguls, and Dave’s Killer Bread have successfully implemented programs to hire justice-involved individuals. In both cases, they have benefitted their companies and their communities.
You’ve run out of excuses
We’ve shown that hiring justice-involved individuals can enhance your reputation and increase your brand devotion, fill the gaps in your labor pool, and bring loyal, hardworking talent to your team.
In addition, you can leverage federal tax credits and bonding to reduce risk and maximize financial benefits. Contact the Pikes Peak Workforce Center today to explore the benefits of hiring incentives for alternative talent pools to help you move forward with hiring a second-chance individual.
Why not take the leap this year to promote economic well-being in your Southern Colorado community while giving your business a boost?
