Hiring People with Criminal Records for Your Cleaning Company

The United States has the world's highest incarceration rate with nearly 30% of adults having a criminal record. Finding a job after prison isn't easy, and 27% of formerly incarcerated people are unemployed (that's 7 times higher than the general unemployment rate).

That may sound surprising to employers, who know there more open jobs than people out of work for the first time in modern history.

Clearly, many employers aren't willing to hire people with criminal records. Are they making a mistake?

Should commercial cleaning companies hire someone with a criminal record?

Why Hire People with Criminal Records

Hiring people with criminal backgrounds, also called second-chance hiring, may not be as scary as you may think. In fact, there can be a strong business case to be made.

1. Ex-Offenders Can Be Loyal Workers
With limited employment options, people with criminal records tend to appreciate anyone who gives them a second chance. Many studies have found they're as or more likely to stick it out in a job than those without records.

• A Stanford University study found the proportions for terminations for unsuccessful job performance were equal for employees with and without records.
• A study of the U.S. military, which is the nation's largest employer, enlistees with prior offenses were actually more likely to get promoted than people without prior offenses.
• A five-year study by Johns Hopkins Hospital of almost 500 ex-offender employees, ex-offenders were more likely to stay in their jobs for more than three years than non-offenders.
• Northwestern University researchers found employees with criminal records were less likely to quit a job, and in general, were no more likely to be fired than employees without records.

For a cleaning company it costs anywhere from $500 to $2500 or more to recruit, hire and train a new employee. With sky-high turnover rates in this industry, keeping employees longer is money in the bank.

2. Tax Credit Opportunities
The Work Opportunity Tax Credit (WOTC) is a federal tax credit of up to $2,400 available to employers who hire people from certain targeted groups, including certain ex-felons. Businesses can even retroactively claim the WOTC for any qualifying employees hired after December 31, 2014.

3. Soft Skills
Ex-felons often develop valuable skills while completing their sentence. In fact, The Janitorial Store has sold many janitorial training programs to prisons across the U.S. They often hold jobs in prison, and those can add to their technical knowhow. Also, they may offer valuable soft skills. As an example, an individual is likely to develop strong problem-solving skills while toughing it out in prison.

Legal Issues when Banning Hiring Criminals

Still leery about hiring former felons? Be careful about taking a hard stance against it. In most cases, having an across-the-board ban on hiring anyone with a criminal record can put you at odds with the Civil Rights Act of 1964's Title VII and Equal Employment Opportunity Commission guidelines.

Additionally, “ban-the-box” legislation requires removing the check box indicating a criminal history from job applications. These laws cover public-sector jobs in 34 states and over 150 cities and counties, and for private-sector jobs in 11 states, with more expected to follow suit.

Check your state and local jurisdiction laws about when you're allowed to ask an applicant about their criminal record. Generally, ban-the-box rules prevent from asking about convictions until making a job offer and conducting a background check.

If a candidate broaches the subject earlier in the process, it's wise to say something like, “I appreciate your honesty. Having a record doesn't necessarily disqualify you from employment, depending on the nature and circumstances of the offense.”

Certain convictions will automatically prevent someone from holding a certain type of job (as an example, someone convicted of child sexual abuse cannot work at a daycare). In most cases, however, the decision is not so clear. Rejecting an applicant because of criminal history could violate the law; consult with an employment law attorney before doing so.

Consulting with an attorney costs money, but it's less expensive than getting hit with a lawsuit. Make sure you're following all laws precisely to avoid violating Title VII in any away.

The Society for Human Resource Management (SHRM) has launched the Getting Talent Back to Work initiative to help business leaders give ex-felons a second chance. The website is loaded with resources to help you adopt inclusive hiring practices and confidently evaluate applicants with criminal records.

Other Considerations for Hiring People with a Criminal Record

Some employers avoid hiring people with criminal records for fear it will increase their insurance rates. In general, costs for core lines like property, casualty, and workers' comp are unaffected. Employment practices liability insurance and commercial crime insurance, however, could be negatively affected. Ask your insurance agent for specifics.

Employers may also worry about liability concerns if an employee with a criminal record injures someone while working. This is a valid concern, but employers can only be held legally responsible if they are negligent in their hiring. Following EEOC guidelines and documenting the reasons for your hiring decisions show due diligence and avoid these problems.

All 50 states can offer insurance bonds to employers who hire risky populations through the Federal Bonding Program under the Department of Labor. You can learn more about these programs through your state employment agency.

You may also find help from the workforce development programs in many states and municipalities. They provide employment support to people with criminal records, and can be very helpful in connecting you to candidates with specific skills, including janitorial experience.

When former inmates find gainful employment, they are less likely to reoffend, which is good for society as a whole. With the unemployment rate at a record low, employers are realizing it's not a sound business practice to shut out anyone with a criminal record. There's a massive pool of able workers ready to join the workforce, if only given a chance.

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