Second Chance Hiring and Employment: How Fair Chance Employers Are Solving the Talent Shortage

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Key Takeaways

  • Second chance hiring is the practice of recruiting, hiring, and promoting qualified people with conviction histories, and it has become a serious answer to open roles employers cannot fill.
  • Eighty-five percent of HR professionals surveyed by Society for Human Resources Management (SHRM) said workers with criminal records perform their jobs as well as or better than workers without records.
  • Roughly one in three American adults has some kind of criminal record, so a blanket background screen shrinks your applicant pool before the first interview.
  • Employees hired through second chance employment programs tend to stay longer, which matters when replacing a single worker can cost thousands of dollars.
  • The Work Opportunity Tax Credit lapsed on Jan. 1, 2026, but the Federal Bonding Program still gives employers free fidelity bond coverage.
  • Support after the offer letter, including transportation help, treatment access, and mentorship, is what makes fair chance hiring stick.
  • In 2025, 63% of Pioneer Human Services’ enterprise workforce was formerly incarcerated and/or in recovery.

What Second Chance Hiring Really Means

Second chance hiring, also called fair chance hiring, means evaluating candidates on skills and fit first and considering conviction history in context, not as an automatic disqualifier. It does not mean skipping background checks or ignoring safety requirements for sensitive roles. It means asking a better question: Does this record actually relate to this job?

The math is hard to argue with. The U.S. Chamber of Commerce reports that unemployment among people with criminal records hovers near 30%, and about half a million people leave prison every year.

Work With Pioneer Human Services

Pioneer Human Services was founded in 1963 and has been proving this business model since 1967. Our award-winning teams have delivered services and products to customers earning accolades and customer loyalty for nearly 60 years. In 2025, 63% of Pioneer’s enterprise workforce was formerly incarcerated and/or in recovery.

  • Aerospace manufacturing: Pioneer Industries is a Tier 1 aerospace parts supplier with more than 100,000 square feet of space, offering computer numerical control (CNC) machining, sheet metal fabrication, finishing, waterjet, and complex assembly.
    • We hold many certifications including the AS9100D Certificate that provides evidence of our commitment to producing quality products (services), and the National Aerospace & Defense Contractors Accreditation (NADCAP) for special chemical processing.
    • Pioneer Industries has supplied Boeing for more than 50 years, earning Boeing Performance Excellence recognition and Premier Bidder status.
  • Food services: Our commercial kitchens prepare nutritious, ready-to-serve meals for residential facilities, behavioral health programs, and lunch programs, with delivery 365 days a year across six Washington counties. Every menu is certified by a registered dietitian, and trained diet aides accommodate diabetic, gluten-free, low-sodium, kosher, and other special diets. We are licensed as a food processor by the Washington State Department of Agriculture.

The Business Case Beats the Stigma

Employers who have tried second chance employment rarely go back. Research from the SHRM and the Charles Koch Institute found that 85% of HR professionals and 81% of business leaders stated that workers with a conviction history perform about the same as – or better – than their peers. Four out of five HR professionals also said a second chance hire costs about the same to make as any other hire.

Retention is where the returns are especially visible:

  • The Manufacturing Institute notes that workers with past convictions tend to stay longer and advance faster than their peers, and are terminated for cause at no higher a rate.
  • Rehiring costs run roughly $3,300 to $8,000 per employee, so every avoided exit protects the budget.
  • The Urban Institute found the same pattern of reliability and long tenure.

There is a public safety dividend, too. People who hold steady work after release are far less likely to return to prison.

Incentives, Bonding, and Risk

Here’s what employers should keep in mind:

The Work Opportunity Tax Credit, worth up to $9,600 per qualified hire, lapsed for workers starting on or after Jan. 1, 2026. However, Congress has renewed it retroactively before, so keep screening and keep your paperwork.

The Federal Bonding Program is still running. It provides no-cost fidelity bonds covering theft, forgery, larceny, and embezzlement for the first six months of employment. Only 1% of those bonds have ever been claimed.

Build the Job So It Holds

A conviction history is rarely the reason a hire does not work out. Transportation, housing instability, court dates, and untreated substance use disorders are. Employers who partner with reentry organizations for wraparound support see the difference in their 90-day numbers.

Start with three moves: Review which roles truly require a clean record, train supervisors on how to onboard without singling anyone out, and build a referral relationship with a local reentry provider.

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About Pioneer

Pioneer Human Services empowers justice-involved individuals to overcome adversity and reach their full potential. With over 35 programs across the state of Washington, we’re working to eradicate mass incarceration through innovative programs and social entrepreneurship. Support our work today to help us provide individuals with conviction histories the treatment, housing and employment services needed – and most importantly — hope for the future.