The manufacturing industry is facing a significant challenge - a labor shortage that is only expected to grow in the coming years. With an aging workforce and difficulty attracting new talent, manufacturers are being forced to get creative when it comes to recruiting and retaining skilled workers.
One often overlooked solution? Fair chance hiring.
Fair chance hiring refers to the practice of giving individuals with a criminal record a fair shot at employment. This can open up a vast new talent pool for manufacturers struggling to fill open positions.
So why should manufacturers consider fair chance hiring? Here are three key reasons:
- Widen Your Talent Pool
1 in 3 Americans have some kind of criminal record. By expanding access to jobs for this population, manufacturers can tap into a diverse and motivated talent pool that is often overlooked.
This is especially critical in the current labor market. Economic trends point to decreasing labor force participation, higher turnover, and a looming talent shortage. Manufacturers can't afford to overlook any potential sources of workers.
- Improve Retention
Contrary to common assumptions, research has shown that employees with past convictions actually stay longer and advance faster than their peers without criminal histories. On average someone with a record stays at their job 12% longer than someone without a record.
The cost of employee turnover can be staggering for manufacturers - estimates range from $3,300 to $8,000 per lost employee. Improving retention through fair chance hiring can have a significant impact on the bottom line.
- Enhance Your Brand
Implementing fair chance hiring practices can also be an important part of a manufacturer's corporate social responsibility (CSR) strategy. Polling indicates that 80% of Americans support expanding these types of inclusive hiring practices and would be proud to work for a company that provides these opportunities.
Positioning your company as one that values second chances and provides opportunities for the formerly incarcerated can enhance your appeal to a new generation of workers. In fact, 64% of millennials say they won't take a job without a connection to CSR.
Tapping Into an Overlooked Talent Pool
The manufacturing industry is at a critical juncture. As the labor shortage continues to intensify, savvy employers will need to think creatively about how to attract and retain skilled workers.
Fair chance hiring offers a unique opportunity to unlock a vast, often overlooked talent pool - individuals with criminal records who are eager for a fresh start and the chance to contribute their skills. By embracing this approach, manufacturers can not only fill open positions, but also make their company more attractive to job seekers, improve employee retention, and make a positive impact on their local communities.
Fair chance hiring is a win-win-win proposition. And it just might be the solution your company needs to overcome the manufacturing industry’s toughest talent challenges.
