U.S. incarceration rates have surged, disproportionately impacting people of color, with formerly incarcerated individuals facing a 27% unemployment rate – higher than the total U.S. unemployment rate during any historical period. Meanwhile, 2.1 million manufacturing jobs are projected to go unfilled by 2030, risking $1 trillion in economic losses. Studies have shown employment is the most effective way to reduce recidivism, yet excluding this talent pool can cost upwards of $87 billion annually in GDP. Fair chance employers are not blind to criminal records but commit to overcome stigma and bias through inclusive hiring practices. With 77% of manufacturers anticipating ongoing labor challenges, peers Eaton and Xylem have embraced fair chance hiring to address shortages. Both are members of the Second Chance Business Coalition, which champions expanding the talent pool by creating economic opportunities for individuals with criminal records while meeting corporate needs. Therefore, IDEX has an opportunity to tap into this overlooked workforce, solving critical labor needs while driving social and economic progress;

Case studies show this population has excellent attendance, reduced turnover, and increased productivity. In contrast, companies with outdated hiring practices risk discrimination claims and non-compliance with EEOC guidelines and state laws. Since people of color are disproportionately impacted by the criminal justice system, fair chance employment can also advance company diversity goals. In its 2022 Sustainability Report, IDEX describes that, “[w]e firmly believe that a diverse and inclusive workforce leads to diversity of thought, which in turn drives innovation and success.” Yet IDEX’s EEO-1 reports only 29.4% of its U.S. workforce is diverse, significantly lower compared to 40% of the general U.S. population that is considered racially or ethnically diverse.

Best practices can include:



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Resolving technical barriers in job applications such as removing criminal history disclosure requirements;



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Partnering with community-based organizations specializing in job preparation for people with past convictions;



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Reviewing background screening practices to ensure an inclusive and compliant processes;



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Reviewing language and building internal communications destigmatizing the issue throughout the entire workforce;



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Creating employee support structures for justice-involved individuals;
Shareholders believe that company value would be well-served by examining whether revisions to company practices related to recruiting formerly incarcerated individuals could expand IDEX’s talent pool and decrease future risks related to discriminatory hiring.