What Is Fair Chance Hiring? A CEO’s Guide to Inclusive Recruitment

·  5 minutes read

Hiring shouldn’t be about someone’s past—it should be about their potential.

That’s the principle behind fair chance hiring: the practice of giving candidates with prior convictions or gaps in their resumes a genuine opportunity to compete for jobs based on merit. For CEOs and business leaders, this isn’t just a social good—it’s a smart talent strategy.

Let’s unpack what fair chance hiring really means, why it matters, and how you can apply it to build a stronger, more inclusive workforce.

What Exactly Is Fair Chance Hiring?

At its core, fair chance hiring is about removing unnecessary barriers that prevent people with criminal records or unconventional backgrounds from entering the workforce.

This means:

  • Delaying background checks until later in the hiring process (“ban the box”)
  • Focusing on current qualifications and job fit, not just the past
  • Providing clear, consistent evaluation criteria
  • Ensuring hiring decisions are fair, unbiased, and compliant

It’s not about ignoring someone’s history—it’s about looking at the whole person, their skills, their growth, and their future potential.

Why Should CEOs Care About Fair Chance Hiring?

Manager mentoring a new hire from a fair chance hiring program.

Because it’s not just the right thing to do—it’s also good for business. Here’s why:

BenefitWhy It Matters
Larger Talent PoolOne in three Americans has a criminal record. Fair chance hiring gives you access to a vast, often overlooked labor pool.
Loyal, Hardworking EmployeesFair chance hires often bring high levels of commitment and job satisfaction.
Improved DEI OutcomesIt supports diversity, equity, and inclusion efforts with measurable impact.
Enhanced Employer BrandCompanies practicing inclusive hiring tend to attract socially conscious customers and employees.
Regulatory ComplianceMany regions have Fair Chance Hiring Laws. Adopting compliant practices helps you avoid legal risks.

If you’re already exploring fair hiring practices, this is a natural extension. In fact, a growing number of policy experts and organizations advocate for this shift. This employer-focused policy brief by NELP outlines the case for fair chance hiring with compelling business and societal benefits that CEOs should take seriously.

What Makes a Hiring Process “Fair Chance”?

A fair chance hiring process involves more than just policy changes. It’s a cultural shift.

1. Delay Background Checks

Avoid asking about criminal history in the initial application. Instead, let the candidate showcase their skills first.

2. Structure Your Interviews

Use structured interviews and consistent evaluation rubrics to reduce unconscious bias. You can read more in our blog on reducing bias in hiring.

3. Train Your Team

Educate hiring managers on fair chance policies and how to evaluate applicants based on relevant job criteria.

4. Provide Second Chances with Support

Consider programs that help fair chance hires transition smoothly, like mentorship or training during onboarding.

Real-World Example: How Employers Are Making It Work

CEO training team on benefits and practices of fair chance hiring.

Some of the most respected companies have embraced fair chance hiring—including Walmart, CVS, and JP Morgan Chase. You can explore more in our blog: 10 US Companies Leading the Way in Fair Chance Hiring.

They’ve proven that with structure, support, and the right policies, hiring people with past convictions doesn’t just work—it can outperform traditional recruitment.

How Does Fair Chance Hiring Compare to “Fair Hiring”?

Fair hiring is the umbrella concept. It includes any effort to make hiring practices more inclusive, ethical, and bias-free. Fair chance hiring is one crucial pillar under that umbrella, specifically focused on people with barriers to employment.

Explore the full scope of fair hiring here:
Fair Hiring Explained: What It Means and How to Do It Right

Best Practices for Implementing Fair Chance Hiring

HR managers conducting structured interview with a fair chance candidate.
Best PracticeDescription
Job-Relevant EvaluationsOnly consider background information if it directly impacts the role.
Compliance with LawsKnow your local Fair Chance Hiring or Fair Hiring Act requirements.
DocumentationKeep written justifications when rejecting candidates based on background checks.
Open CommunicationBe transparent with candidates about your process.

Need help writing a compliant policy? Here’s a great resource: Fair Hiring Policy Template

Related Pages

  • Fair Hiring in Banking: How the Act Impacts Financial Institutions
  • EEOC Compliance in Hiring: What You Need to Know
  • Automated Hiring Fairness: Can Tech Help?
  • What Makes a Fair Hiring Agency?

FAQs

What is the goal of fair chance hiring?

It’s about giving individuals with records or barriers a legitimate opportunity to compete for jobs, based on their current qualifications and potential.

Is it risky to hire someone with a criminal record?

Not necessarily. When done thoughtfully, fair chance hiring has been shown to reduce turnover and increase employee loyalty. It’s about making informed, job-relevant decisions.

How is fair chance hiring different from diversity hiring?

Fair chance hiring focuses specifically on candidates with criminal records or similar barriers. It overlaps with DEI but serves a distinct, often underserved, population.

Do I have to comply with any specific laws?

Yes—many states and cities have Fair Chance Hiring Laws. It’s smart to align with them, even if not legally required, to future-proof your practices.

Can automation help ensure fair hiring?

Absolutely. Read how automation can reduce bias and increase consistency in our guide: Can Automation Make Hiring Fairer?

Final Thoughts

If you’re serious about building a diverse, equitable, and high-performing team, fair chance hiring isn’t just a nice idea—it’s a competitive advantage.

It challenges outdated assumptions. It opens doors to untapped talent. And most importantly, it reflects a future-focused, inclusive business mindset.

Content

    Fletcher Wimbush  ·  CEO at Discovered.AI
    Fletcher Wimbush · CEO at Discovered.AI
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