Latest / The Diversity Career Podcast with Fexingo: Inclusion, Equity, and Underrepresented Professionals / How One Company Built a Career Ladder for Formerly Incarcerated Professionals
Transcript
- Lucas: So Luna, I was looking at some labor-force data over the weekend, and one number really jumped out: every year in the US, roughly 600,000 people are released from state and federal prisons. That's about the population of Milwaukee, coming back into the job market. Luna: And the vast majority of them want to work. I've seen stats that something like 70 to 80 percent of formerly incarcerated people say they're actively looking for jobs within the first year of release. Lucas: Right. But the obstacles are enormous. Background-check filters, occupational licensing restrictions in over 30 percent of jobs that require a license, and just straight-up discrimination in the hiring process. A 2020 study from the National Bureau of Economic Research found that applicants with a criminal record were about 60 percent less likely to get a callback than identical applicants with no record. Luna: That's a massive gap. And it's not just about fairness — it's about economic waste. I've read estimates that the total economic cost of mass incarceration to the US economy is around 78 billion dollars a year, counting lost wages, reduced tax revenue, and the cost of re-incarceration. Lucas: Exactly. So today I want to look at a company that's actually built a systematic career ladder for formerly incarcerated professionals — JPMorgan Chase. They launched what they call their 'Second Chance' program back in 2018, and as of early 2026, they've hired over 4,000 individuals with criminal records. Luna: Four thousand. That's not a pilot program or a token effort. That's a real pipeline. Lucas: It is. And what I find interesting is how they structured it. It's not just about removing the checkbox from the application. They did three specific things. First, they redesigned the hiring process itself. They partnered with reentry organizations — groups like the Center for Employment Opportunities and Defy Ventures — to source candidates who had already gone through job-readiness training. So they're not just taking random applications; they're tapping a curated pipeline. Luna: So the screening happens upstream. That makes sense because it reduces the risk for hiring managers who might be nervous about evaluating candidates with records. Lucas: Exactly. Second, they changed their background-check policy. Instead of automatically disqualifying anyone with a criminal record, they did what's called an 'individualized assessment.' They look at the nature of the offense, how long ago it was, and whether it's relevant to the job. And they also adopted 'Ban the Box' voluntarily — that's removing the criminal-history question from the initial application, so candidates get evaluated on their skills first. Luna: That's crucial. Because if you have the box on the application, a lot of people just don't get past the automated filter. And studies show that Black and Latino applicants are disproportionately affected because of systemic disparities in the justice system. Lucas: Right. And the third piece is the most interesting from a career-ladder perspective. JPMorgan didn't just hire people into entry-level roles and leave them there. They created what they call 'career navigation' support — internal mentors, financial coaching, and a dedicated team that helps employees navigate things like transportation, housing, and even expungement of records. Because a job isn't a career if you can't hold it and grow in it. Luna: And what does the data say about retention? Because I feel like a lot of companies worry that hiring people with records will lead to higher turnover. Lucas: That's exactly the counterintuitive finding. JPMorgan has published data showing that their Second Chance hires have a retention rate of over 60 percent after one year, which is actually higher than their overall entry-level retention rate. And the internal promotion rate is comparable to other employees. So the business case is strong — you get loyal, motivated employees who are grateful for the opportunity and perform well. Luna: It's almost like when you remove artificial barriers, you find talent that's been overlooked. And it's not just JPMorgan — other companies like Slack, Microsoft, and even some smaller firms have similar programs. Lucas: Yeah, Slack's program was actually one of the early models. But JPMorgan's scale makes it a useful case study. They've also been vocal about the policy side — they've advocated for ban the box laws and for limiting the use of credit checks in hiring, which also disproportionately affect people with records. Luna: So for a listener who might be in HR or talent acquisition at a mid-size company, what are the first steps they could take to start building something like this? Lucas: I think the most actionable step is to partner with a reentry organization. You don't have to build the pipeline from scratch. Groups like the Center for Employment Opportunities have chapters in over 30 cities and already provide pre-employment training. So you can start with a small cohort — maybe 10 or 20 hires — and track their performance against a control group. Luna: And also look at your own background-check policy. You can move to a 'fair chance' approach without changing state laws — just stop asking about criminal history on the initial application and do individualized assessments for those who make it past the first round. Lucas: Exactly. And it's worth noting that there are legal protections already. There are over 150 cities and counties that have ban the box laws, and the Equal Employment Opportunity Commission has issued guidance saying that employers can't use criminal records in a way that has a disparate impact on protected groups. So the groundwork is there. Luna: Lucas, something you've talked about on this show before — the importance of mentorship and sponsorship. Does JPMorgan's program include that? Lucas: Yeah, that's the third pillar. Each Second Chance hire is paired with a mentor from within the bank — usually someone who's been there for a few years and has gone through training on how to support someone who might be navigating reentry. And they also have a 'buddy' system for the first 90 days. It's not just about showing up; it's about integrating into the culture. Luna: That kind of support is expensive upfront, but it pays off in retention. I'd love to see more companies share their data publicly, so we can build a stronger case. Lucas: And if you're listening and this topic resonates with you — maybe you're thinking about your own career path or how to make your workplace more inclusive — that's exactly the kind of thing we try to dig into on this show. And it's also the kind of conversation that listener support helps us keep going. We keep this podcast ad-free, and that's possible because some of you choose to support us at buy me a coffee dot com slash fexingo. If that's something you want to do, we appreciate it more than we can say. But either way, we're glad you're here. Luna: Yeah, it really does make a difference. And speaking of making a difference — there's another angle I want to touch on. One thing that often gets overlooked is the financial burden of reentry. Many formerly incarcerated people come out with no savings, no credit history, and sometimes even debt from court fees. Lucas: That's a huge point. JPMorgan actually addressed that too. They offered what they called 'financial wellness' coaching — help with opening bank accounts, building credit, and even small loans or advances for things like work uniforms or transportation. Because if you can't get to work or you don't have the right clothes, the job doesn't stick. Luna: It's the holistic approach. A job isn't just a job — it's a foundation for everything else. And when companies treat it that way, they get better outcomes. Lucas: So to wrap up: 4,000 hires, 60 percent retention, and a model that's replicable. The key ingredients are partnership with reentry organizations, a fair chance hiring process, and wraparound support. It's not charity — it's talent strategy. Luna: And it challenges the assumption that a criminal record defines someone's potential. That's a powerful shift. Lucas: Absolutely. I'm Lucas. Luna: And I'm Luna. Thanks for listening.