Latest / The Diversity Career Podcast with Fexingo: Inclusion, Equity, and Underrepresented Professionals / How a Bank Created a Career Track for Incarcerated Youth
Transcript
- Lucas: So there's this number that's been rattling around my head since I read the report: a major U.S. bank partnered with a nonprofit to hire young people who've been through the justice system, and their retention rate after two years is actually four points higher than their traditional hires. Luna: That is not the stat I expected. I figured it would be lower, honestly. Lucas: Right, and that's exactly the bias this program is designed to challenge. The bank, I'm not naming them, but they're one of the big ones, they started this about five years ago. It's a career track, not just a job placement. Participants get a paid internship that runs six months, they're paired with a senior mentor, and if they hit their milestones, there's a path to a permanent role. Luna: So it's not just 'here's a job, good luck.' There's structure. Lucas: Exactly. And the structure is what makes it work. The nonprofit partner provides what they call wraparound support — housing assistance, therapy, even help with transportation. Because if someone is showing up to work but they're worried about where they're sleeping that night, that's going to affect their performance. Luna: That makes so much sense. It's like the whole person, not just the employee. Lucas: And the bank had to change some of its own policies to make this work. For starters, they had to adjust their background check process. Not to ignore it, but to look at it in context. They removed the checkbox questions that used to screen people out early, and they trained hiring managers on how to have conversations about a candidate's record without letting it dominate the interview. Luna: That's a big shift. Because a lot of companies say they want to give people a second chance, but then the first filter just eliminates them anyway. Lucas: Right, and that's the subtle stuff. The other thing they did was they changed their contingency. Instead of requiring a clean record, they made the offer contingent on completing the internship successfully. So the check happens, but it's not an automatic disqualifier. Luna: So if they've done the work for six months, they've kind of proven themselves. Lucas: Exactly. And the numbers back it up. Participants are 40 percent less likely to re-offend than a comparison group from similar backgrounds who didn't go through the program. And the bank's internal data shows that after two years, these employees are staying at a higher rate than their traditional pipeline. Luna: That's a compelling business case. I mean, turnover is expensive. Hiring and training costs add up. Lucas: It's one of the strongest arguments — the cost savings from lower turnover actually offset the extra support costs. The bank's head of talent put it this way: 'We stopped asking what's wrong with them, and started asking what we can do.' Luna: That's a nice reframing. But what about the managers on the ground? Because I imagine there's some resistance. Lucas: There was, at first. Some managers were wary, and the bank didn't force it. They started with a volunteer cohort, and they gave those managers extra training and a resource network. Now they've got a waiting list of managers who want to be part of it. Luna: Because they see it working, and they see the dedication. Lucas: Yeah, there's one story — a participant named Marcus, he was 19 when he started, and he'd never had a bank account before. He's now a branch operations specialist, and he's helped his mom open her first savings account. That kind of ripple effect is hard to quantify, but it matters. Luna: That's the kind of story that would make me proud to work there. Lucas: And I think that's part of the retention story too. Employees feel a sense of purpose, and that translates into discretionary effort. The bank has seen that these teams often outperform others on customer satisfaction scores, which makes sense if you have people who are genuinely invested in the mission. Luna: So what about the broader landscape? Are other banks or companies doing similar things? I know we've talked about a few, but this feels like a different approach. Lucas: There are a few, but this one stands out because of the integration with the nonprofit and the focus on youth — most programs target older adults. There's also a tech company that runs a similar model, but they don't offer the same level of wraparound support. So the bank's approach is more holistic. Luna: And I guess the question is, can this scale? Because it sounds resource-intensive. Lucas: It is, but the bank is now measuring the return on investment, and they're seeing that the cost per hire, over time, is actually lower than traditional recruiting, because of the retention and the lower recruitment fees. They've also expanded to two other cities, and they're working with a consortium of employers to share best practices. Luna: That's promising. But I want to talk about one thing that might be a barrier for other companies: the background check issue. You mentioned they changed it, but how did they handle the legal side? Because there are regulations. Lucas: Right, and they worked closely with their legal team to make sure they were compliant with the Fair Credit Reporting Act and various state laws. They also use a process called individualized assessment, which the Equal Employment Opportunity Commission actually recommends. That means they look at the nature of the offense, the time since it happened, and its relevance to the job. Luna: So it's not a blanket ban, it's a thoughtful review. Lucas: Exactly. And they're transparent about it with candidates. They tell them right upfront, 'We're going to look at your record, but here's what we consider, and you have a chance to explain.' That reduces anxiety and builds trust. Luna: I love that. It's respectful. And it probably helps that the program is voluntary, so candidates are choosing to be part of it. Lucas: Yeah, and that self-selection is key. Nobody's being coerced. They're applying because they want to turn things around, and the bank is giving them a genuine shot. That mutual investment is what makes it work. Luna: So, if someone is listening and they're involved in hiring at their company, what's the first step they could take to build something like this? Lucas: The bank would say: start with one cohort, keep it small, and partner with a nonprofit that has deep expertise. Don't try to build the support system in-house. And be prepared to adjust your policies, because the odds are your current screening processes are unintentionally exclusionary. Luna: That's solid advice. It's not about being a hero, it's about being methodical. Lucas: Exactly. And I think that's a good place to pause. We've covered a lot, but I want to make sure we also mention the show's own support line — if today's conversation helped you think about your own hiring practices, or if you just appreciated the deep dive, that's the kind of thing that keeps us going. You can support the show at buy me a coffee dot com slash fexingo. It's a small way to keep this podcast ad-free and independent. Luna: Yeah, and every little bit really helps. Lucas and I put a lot of research into each episode, so if you find value in it, that's the best way to say thanks. Lucas: But back to the story — there's one more piece I found interesting. The bank also tracks the long-term outcomes of participants who don't stay with the bank. Even if someone leaves after a year, they're 60 percent more likely to be employed elsewhere than people who never went through the program. Luna: So the program is a stepping stone, even if it's not a final destination. Lucas: Exactly. They're building skills and confidence that last. That's the real legacy. Luna: It's a model that I think has a lot of potential. Thanks for bringing it to us, Lucas. Lucas: Of course. It's a story worth telling. And if you're curious about how to adapt it to your industry, the bank has actually published a playbook. I'll link it in the show notes. Luna: Perfect. That's a great takeaway for our listeners.