Latest / The Diversity Career Podcast with Fexingo: Inclusion, Equity, and Underrepresented Professionals / How One Company Built a Career Ladder for Formerly Incarcerated Talent
Transcript
- Lucas: So earlier this year, I came across a report from the Prison Policy Initiative that really stuck with me. Formerly incarcerated people face an unemployment rate of over 27 percent — that's nearly five times the general population's rate, even in a strong labor market. Luna: And that number gets worse when you break it down by race, too. Black and Hispanic men with records see even higher rates. Lucas: Right. So today we're looking at one company that decided to do something about that. It's called TransCorp Solutions — they're a mid-sized logistics firm based in Ohio, about 800 employees. And in 2023 they launched a structured career ladder specifically for formerly incarcerated talent. Luna: I've heard the phrase 'second-chance hiring' thrown around a lot, but most programs I've seen are just entry-level placements with no real path forward. What made TransCorp different? Lucas: Great question. They didn't just hire people — they built a pipeline. They partnered with a nonprofit called the Second Chance Institute, which does pre-release training and then provides ongoing coaching once someone's on the job. TransCorp also adjusted a few of their hiring criteria. Luna: Like what? Background checks? Lucas: Exactly. They stopped automatically disqualifying candidates with felony records for warehouse roles. Instead, they do a case-by-case review focused on the nature of the offense and how long ago it was. They also removed the requirement for a driver's license for non-driving positions — which is a huge barrier for many returning citizens. Luna: That makes sense. In many states, getting a license reinstated after incarceration can take months or even years. Lucas: Right. So the program started with a pilot cohort of twelve people in their Columbus distribution center. Each person was paired with a 'buddy' — not a manager, but an experienced peer who could show them the ropes and answer questions without any performance pressure. Luna: And the buddy system — was that paid? I've seen programs where the buddy role is just extra work, no compensation. Lucas: TransCorp actually gave buddies a small stipend — two hundred dollars per month per new hire they mentored. It wasn't huge, but it signaled that the company valued that role. And they trained the buddies on things like trauma-informed communication and how to handle a situation if someone's parole officer calls during a shift. Luna: That's practical. So what did the career ladder actually look like? Lucas: They mapped out four tiers. Tier one is entry-level warehouse associate — picking, packing, shipping. After six months and completion of a basic safety and operations course, you can move to tier two, which is a 'team lead' role — still hourly, but with a pay bump of about 15 percent. Tier three is shift supervisor, which is salaried. And tier four is operations manager. Luna: And did anyone actually climb that ladder in the first couple years? Lucas: Yeah. One of the most notable stories is a guy named Marcus. He was part of that first cohort, started as a picker in the warehouse. Within eighteen months he became a shift lead, and now he's training new hires. The Second Chance Institute's coach told me that Marcus's confidence went up dramatically once he saw that the promotion path was real — it wasn't just a promise. Luna: I'd love to know what the numbers look like. Retention, productivity — any data? Lucas: TransCorp shared some early results. In the pilot cohort, turnover after one year was 28 percent, compared to 45 percent for their general warehouse hires. And productivity — measured by units picked per hour — was within 5 percent of the average after a three-month ramp-up period. So basically, after a short learning curve, they performed just as well. Luna: That's a pretty strong business case. Lower turnover saves a ton on recruiting and training costs. Lucas: Exactly. And they also saw a cultural benefit. Several long-time employees told leadership that working alongside people with lived experience of incarceration changed their own assumptions. The company started a voluntary 'listening circle' once a month where people could share stories. Luna: Were there any unexpected challenges? Lucas: A few. One was transportation. Many returning citizens don't have reliable cars, and public transit in Columbus doesn't run great for night shifts. TransCorp ended up subsidizing a vanpool for the second shift — they split the cost with the workers. Luna: That's an example of a barrier that's not about capability — it's about logistics. And if you don't solve that, the program fails. Lucas: Right. Another challenge was parole conditions. Some people had curfews or couldn't work certain hours. TransCorp worked with parole officers to adjust schedules where possible. They also created a policy that no one would be fired for missing work due to a parole appointment — they treated it like a doctor's visit. Luna: That kind of flexibility is rare. I think a lot of companies worry about legal liability or just don't know how to navigate the system. Lucas: Which is why the partnership with Second Chance Institute was so important — they handled a lot of that navigation. TransCorp didn't have to become experts in reentry law. They just had to be willing to adapt. Luna: So what's next for TransCorp? Are they scaling this? Lucas: They're expanding to two more distribution centers this year, and they've started a similar track for office roles — think customer service and data entry. They're also working with a local community college to offer a certificate in logistics management that fits into the tier-three requirements. Luna: That's a real investment. It's not just hiring — it's building a system. Lucas: Right, and I think that's the key takeaway. A career ladder isn't a poster on the wall. It's a set of intentional policies — adjusted criteria, mentorship, skill-building, transportation support — that make the path real. Luna: And it benefits everyone. The employee gets stability and growth. The company gets loyal, motivated workers. And the community sees reduced recidivism. Lucas: Yeah. And honestly, this kind of deep-dive reporting is exactly why we love doing this show. It takes time to find the numbers and talk to the people involved. Luna: Absolutely. And that's possible because of listeners who support us directly. If you've gotten value from episodes like this, you can chip in at buy me a coffee dot com slash fexingo. It's just a way to keep the show ad-free and independent. Lucas: It's a small group that already does, and it genuinely makes a difference. So thank you to those folks. Luna: Now, back to TransCorp — one thing I was curious about: did they see any pushback from existing employees about the program? Lucas: Some initial skepticism, yeah. A few workers worried about safety. But TransCorp held town hall meetings where they explained the screening process and introduced the first cohort. Once people worked alongside them, those concerns mostly faded. After six months, a survey showed 85 percent of employees supported continuing the program. Luna: So communication and transparency were key. Lucas: Exactly. They didn't just spring it on people. And they made sure the program had a champion at the executive level — the VP of operations was directly involved. Luna: That's a good lesson for any company considering something similar. Lucas: Yeah. I think the takeaway is: start small, partner with experts, listen to the workers, and build a real ladder — not just a one-off hire. Luna: And maybe consider that vanpool. Lucas: Yeah, the vanpool. Sometimes the most impactful thing is also the most practical.