Latest / The Diversity Career Podcast with Fexingo: Inclusion, Equity, and Underrepresented Professionals / How a Retailer Built a Career Ladder for Formerly Incarcerated Talent
Transcript
- Lucas: We've talked a lot on this show about companies removing barriers for specific groups — name-blind resumes, gender-neutral leave, neurodivergent career ladders. But today I want to talk about a group that often gets overlooked in the DEI conversation: people with criminal records. Luna: Yeah, that's a population that faces huge hiring friction. About one in three American adults has some kind of criminal record, and studies show that having a record reduces callback rates by about 50 percent. Lucas: Exactly. And that's a massive waste of talent. So I want to look at one company that has built a real, structured career ladder for formerly incarcerated individuals: Giant Eagle, the regional supermarket chain based in Pittsburgh. They run about 470 stores across Ohio, West Virginia, Indiana, and Maryland. Luna: I know they've had a second-chance hiring program for a while — I think it started around 2021? Lucas: Right, they launched it in 2021 in partnership with a nonprofit called Operation Better Start. But what's interesting is that it's not just a hiring program — it's a career ladder. Participants start in a 12-week paid transitional role, typically as a store associate or in the warehouse. After those 12 weeks, if they meet performance standards, they're offered a permanent full-time position with benefits, including health insurance and a 401. Luna: So the transitional period is essentially a probationary phase with training built in? Lucas: Exactly. And the training isn't just job-specific. Operation Better Start provides life coaching, financial literacy workshops, and help with transportation and housing if needed. Giant Eagle assigns each participant a mentor from within the company — a manager or a senior associate — who checks in weekly. Luna: That level of support makes sense. A lot of folks coming out of incarceration don't have a stable place to live or a bank account. If you don't address those basics, the job doesn't stick. Lucas: Right. And the numbers suggest it works. Giant Eagle reported that as of early 2025, they had hired over 300 people through this program, with a one-year retention rate of about 80 percent. That's significantly higher than their overall hourly retention rate, which is typically around 60 to 65 percent. Luna: Eighty percent is remarkable. What about promotion rates? Lucas: They don't publish a specific promotion rate, but they do track that about 20 percent of participants have moved into supervisory roles within two years. So it's not just a dead-end job — there's a path forward. Luna: That's the part that really matters for a career podcast. It's one thing to get a job, it's another to have a trajectory. Lucas: Exactly. And the program is designed with that in mind. After the first year, participants can apply for tuition reimbursement — up to $5,000 a year for job-related coursework. That could be a GED program, a community college class, or even a certification in supply chain management. Luna: So it's a career ladder, not just a hiring pipeline. That's the distinction I want to hold onto. A lot of companies have 'ban the box' policies or say they hire from second-chance programs, but the jobs often top out at entry level. Lucas: Right. And that's the criticism I've heard — that some second-chance hiring is just PR. But Giant Eagle's model has enough structure that it feels substantive. They also deliberately recruit from neighborhoods near their stores, so employees can walk or take a short bus ride to work. That removes a transportation barrier that's huge for this population. Luna: Let me push back a little. Giant Eagle is a large company with dedicated HR resources and a nonprofit partner. Is this replicable for a small or midsize employer? Lucas: Fair question. I think the core elements are replicable even at smaller scale. You don't need a formal nonprofit partnership — you could start by working with a local reentry organization or even a community college that has a reentry program. The key pieces are: a structured onboarding period with clear milestones, a mentor assigned from day one, and a visible path to promotion. You can do that with 20 employees or 2,000. Luna: What about legal risk? I know some employers worry about negligent hiring claims. Lucas: That's the most common objection I hear. But the data doesn't support it. Multiple studies — including a 2017 study from the Society for Human Resource Management — found that employees with criminal records are no more likely to commit workplace infractions than those without. And there's actually a federal bonding program through the Department of Labor that insures employers against theft or property damage by a previously incarcerated employee for the first six months. Luna: I didn't know about that bonding program. So the insurance piece is already handled. Lucas: Exactly. And more and more states are passing laws that limit when employers can even ask about criminal history. So the legal landscape is shifting in favor of second-chance hiring. Luna: Alright, let's take a quick breath here. You know, if this conversation has given you something to think about — maybe you're an HR professional or a hiring manager considering a similar program — I want to mention that listener support is what keeps this show ad-free and allows us to dig into these specific case studies. If you find value in that, you can support us at buy me a coffee dot com slash fexingo. That's buy me a coffee dot com slash fexingo. No pressure, just a way to keep the conversation going. Lucas: Yeah, I'll echo that. We love doing this work, and it's thanks to listeners who chip in that we can stay independent. So thank you to anyone who's already supported. And now, back to Giant Eagle — there's another angle I want to explore. Luna: Which is? Lucas: The business case beyond retention. Giant Eagle operates in a tight labor market — grocery margins are thin, and turnover is expensive. Replacing an hourly employee costs about $1,500 to $2,000 when you factor in recruiting, training, and lost productivity. If you hire 300 people through a program that retains them at 80 percent instead of 60 percent, you're saving a lot of money. Luna: So this isn't charity — it's a talent strategy. Lucas: Right. And there's also the customer connection. Giant Eagle's customer base is diverse, and many shoppers have personal experience with the justice system themselves. Seeing employees who look like them and have similar backgrounds can build loyalty. Luna: That's a point that often gets missed in the DEI conversation — the representation piece isn't just about race or gender. It's about life experience. Lucas: Absolutely. And I think that's where this program really stands out. It's not a checkbox. It's a pipeline that starts with a real need — a person needs a job and a company needs workers — and builds a structure around it. Luna: What would you say to a listener who wants to pitch something like this at their own company but doesn't know where to start? Lucas: I'd say start small. Pick one role — maybe a warehouse position or a customer service role that's hard to fill. Call your local reentry organization and ask if they have candidates who'd be a good fit. Start with a pilot of five people. Track everything: retention, performance, cost savings. Then use that data to build the case for expansion. Luna: And don't forget the internal champion piece. You need a senior leader who's willing to sponsor the program and talk about it publicly. Lucas: That's key. At Giant Eagle, the CEO Laura Karet was publicly behind it from the beginning. That sends a signal to the whole organization that this is a priority, not just an HR experiment. Luna: Alright, so let's wrap with a forward look. What's next for this space? Are we going to see more retailers adopt these programs? Lucas: I think so. In 2025, the 'Fair Chance Business Pledge' — which started under the Obama administration — was relaunched with over 60 major companies signed on, including Walmart, Target, and Home Depot. So the momentum is building. The question is whether those pledges translate into the kind of structured career ladders we see at Giant Eagle. Luna: That's the gap between intention and implementation. Hopefully more companies cross it. Lucas: Hopefully. And if they do, we'll be here to cover it.