Nevin Shetty’s analysis of second chance hiring has been discussed in business and technology outlets including TechBullion. His book Second Chance Economics is heavy on data, but it also provides a practical roadmap for employers who want to move from theory to action. Based on Shetty’s research and the experiences of companies that have already implemented inclusive hiring programs, here is a step-by-step guide for getting started.
Step One: Audit Your Current Application Process
Before changing anything, look at what you are currently doing. Pull up your standard job application and search for the question about criminal history. If it appears on the initial application, before the candidate has been evaluated on qualifications, skills, or experience, you are screening out potentially strong hires before you even know they exist.
Thirty-seven states and over 150 cities and counties have adopted ban-the-box policies that move this question to later in the process. Even if your jurisdiction has not passed such a law, adopting the practice voluntarily is a simple change that immediately expands your candidate pool.
Step Two: Train Your Hiring Managers on Individualized Assessment
Removing the checkbox is only the first step. Your hiring managers need to know how to evaluate candidates with criminal records when that information does surface later in the process. Individualized assessment means considering the nature of the offense, how much time has passed, what rehabilitation steps the candidate has taken, and whether the offense has any relevance to the position they are applying for.
This is not a complicated training. It can be covered in a two-hour session. But without it, hiring managers fall back on instinct, and instinct tends toward blanket rejection. Training replaces fear with a structured decision-making process.
Step Three: Build Partnerships with Reentry Organizations
You do not have to build your candidate pipeline from scratch. Reentry organizations in most major metro areas work with people who are reentering the workforce, helping them develop skills, prepare for interviews, and identify positions that match their qualifications. Partnering with these organizations gives you access to pre-screened candidates and a support network that can help with the transition.
Shetty, who built his career around strategic partnerships at companies like David’s Bridal and through his co-founding of Blueprint Registry, emphasizes that the most successful second chance programs are built on relationships, not just policies. The employer provides the opportunity. The reentry organization provides the preparation and support. The employee provides the effort. When all three are in place, the outcomes are consistently strong.
Step Four: Claim the Tax Credits
The Work Opportunity Tax Credit is one of the most generous and most underused hiring incentives in the federal tax code. For employees with qualifying backgrounds, the credit ranges from 2,400 to 9,600 dollars per hire. All it requires is submitting Form 8850 to your state workforce agency within 28 days of the employee’s start date. Talk to your payroll provider or tax advisor about integrating this form into your standard new-hire paperwork.
A company that hires 30 qualifying employees in a year could be looking at over 70,000 dollars in tax savings. That is not a rounding error. That is a line item that hits your bottom line directly.
Step Five: Invest in Onboarding the Same Way You Would for Any Hire
The single biggest predictor of whether a second chance hire will succeed or fail is the quality of their onboarding experience. This is true for all employees, but it matters more for people who may be reentering the workforce after a gap.
Effective onboarding means a structured first 90 days with clear expectations, regular check-ins, a mentor or buddy, and visible pathways for growth. Companies that invest in onboarding see higher retention across their entire workforce, not just among second chance hires. The investment is modest and the return is measurable.
Step Six: Start Small and Measure Everything
You do not need to overhaul your entire hiring strategy on day one. Start with a pilot program in one department or one location. Set clear metrics: retention at 90 days, retention at one year, productivity relative to other new hires in the same role, and attendance. Track these metrics the same way you would track any other business initiative.
Shetty, whose career has included managing hundreds of millions in institutional capital, approaches this with the same discipline: measure the inputs, measure the outputs, and let the data tell you whether to scale. The companies that have done this consistently find that the data supports expansion.
Step Seven: Share What You Learn
One of the biggest barriers to second chance hiring is the perception that it is risky and unproven. Every company that implements a program and shares its results helps break that perception. You do not need to launch a PR campaign. A presentation at an industry conference, a case study shared with peers, or a conversation with your trade association all contribute to the growing body of evidence that this approach works.
The restorative justice movement grows one employer at a time. Each company that demonstrates positive results makes it easier for the next one to say yes.
