The bottom line
U.S. employers are competing in a tight labor market, especially here in the Upper Midwest. In June 2025, unemployment sat around 2.5% in North Dakota and 3.3% in Minnesota, both lower than or on par with the national rate—meaning qualified candidates are scarce and expensive to replace.
At the same time, an estimated 77 million Americans—about 1 in 3 adults—have a criminal record and face barriers to work. That’s a massive, motivated talent pool most companies underuse.
What employers say about hiring fair chance talent
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Equal or better performance. In a national survey, 85% of HR leaders and 81% of business leaders said employees with records perform the same as or better than peers without records.
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Stronger retention & loyalty. Studies from Northwestern/Kellogg found lower quit rates among employees with records—reducing costly turnover. One estimate: ~$1,000 per hire saved per year from lower attrition.
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Real-world proof. Programs like Next Chapter report 93% retention and 97% conversion to full-time for returning citizens—evidence that structured, supportive pipelines work.
Cost savers & risk reducers
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Tax credits. The federal Work Opportunity Tax Credit (WOTC) can offset hiring costs—typically up to $2,400 per eligible employee, and in some cases up to $9,600 (e.g., certain veteran categories).
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Bonding coverage. The Federal Bonding Program provides no-cost fidelity bonds (often $5,000 for six months) to protect employers against theft-related loss when hiring candidates who face barriers to employment.
Community impact that loops back to your business
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Employment reduces reoffending. Research consistently links steady work to lower recidivism; meta-analyses show education and job training markedly reduce returns to prison, improving workforce stability and public safety.
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Skills + a job matter. Analyses indicate people who work after release are 5.9–25.3% less likely to return to prison than those who don’t. Maintaining a year of post-release employment correlates with dramatically lower recidivism.
Regional snapshot: ND & MN
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Tight labor markets. ND at 2.5% unemployment; MN at 3.3% (June 2025), both signaling hiring headwinds—and a strong case for tapping overlooked talent.
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Incarceration context. The U.S. still incarcerates around 1.8 million people; every state—including ND and MN—incarcerates more people per capita than most nations. That reality means tens of thousands of capable workers are returning to communities and looking for work.
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Minnesota law reminder. Ban the Box in MN requires employers to delay criminal history inquiries until after an interview or conditional offer (with specific exceptions). If you operate in MN, review your application and screening process.
How to get started (a quick playbook)
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Audit your application & postings. In MN, ensure compliance with Ban the Box; focus job posts on skills and essential requirements.
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Revise background check practices. Use job-related, individualized assessments (nature/time/relevance of offense) rather than blanket exclusions. See SHRM’s guidance and “Getting Talent Back to Work” resource.
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Stand up a pilot. Pick a few roles with clear success profiles; partner with workforce groups and reentry nonprofits (like F5 Project) for pre-screened candidates and wraparound support.
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Leverage incentives. Register for WOTC and line up the Federal Bonding Program so HR can use them on Day 1.
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Measure & share results. Track time-to-fill, retention, performance, and safety metrics. Many employers find fair chance cohorts match or exceed company averages on these KPIs.
The bigger picture
Choosing fair chance hiring isn’t just charity—it’s a competitive talent strategy with measurable ROI, tax advantages, and reputational upside. It also strengthens families and communities, which is good for business and the regional economy long term. When companies open the door, people walk through it—and stay.
Want help building or piloting a fair chance pathway? F5 Project can help you design compliant workflows, source candidates, and support retention.
