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High Tech Firm Checkr Solving Criminal Record Discrimination On Background Checks

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For many leaving prison, it is one of the most frightening days of their life. While embracing family and friends, eating a good home cooked meal, and sleeping in a good bed are the best in life on the outside of the fence, it is the stress of starting life over that hits most emerging from prison.

Those with criminal records have a difficult time recovering from them when it comes to a job search. No matter what good deeds many may have done to distance themselves from past mistakes, a background check from a prospective employer is a difficult barrier to overcome. “Ban-the-Box” campaigns have been successful in removing the question “Do you have a criminal conviction?” from many applications. Even so, if the interview is successful the next steps involving a background check can disqualify a candidate just because of a past conviction.

Nobody is arguing that certain people convicted of certain crimes should be not disqualified, like someone involved in insurance fraud should not be selling insurance (plenty of other examples exist). However, once the background check is seen by a potential employer, it can’t be unseen. That is where Checkr has stepped in to solve a problem.

Criminal background checks have been around for decades. Candidates give permission for a company to conduct a background check and the results come back as either; 1) clean or 2) there’s something there. That “something there” has the potential to create an immediate bias, meaning that many resumes are simply removed from consideration at that point. Checkr’s founder and CEO, Daniel Yanisse describes himself as someone who looks to fix things that are broken. Yanisse told me in an interview, “This was a process that was clearly broken.

Over 77 million Americans have a criminal record (including small, minor drug charges like marijuana). Many of these people are qualified candidates looking for a second chance, but immediately are excluded from the hiring mix due to flunking an initial background check. Checkr works with major employers (Netflix NFLX , Airbnb, and Instacart - to name a few) providing a high-tech solution for handling their background check service. Checkr provides both the technology to conduct the check, but also intervenes with candidates when a criminal background check confirms a history of a run-in with criminal justice.

Many individuals with records seek opportunities in the gig economy, where companies tend to rely heavily on background checks to determine if candidates qualify for a position, without ever meeting them face-to-face. Given its significance, Checkr wants the background check experience to be as humanizing as possible and allow candidates the opportunity to represent themselves fully. Yanisse said that the technology they developed allows the candidate to provide some context prior to the employer looking further at the candidate. “It helps start a conversation if the person could do the job and the only disqualifying factor is a crime,” Yanisse said. Checkr gets in touch with the candidate and lets them know about the process. Yanisse told me, “We have to gain confidence of the candidates so that they know we are trying to give them an opportunity to provide context to what is a very personal and tragic part of their life.

Since the COVID pandemic has subsided (at least in many parts of the country), employers have complained that it is difficult for them to find workers. Indeed, there is a worker shortage but it is not because workers are clinging to government subsidies, but because there are just fewer workers as baby boomers are exiting the workforce faster than population growth and immigration. Checkr believes that those with criminal records are a key to helping fill those positions.

Employers who speak to Checkr are faced with facts such as excluding those with criminal backgrounds is costly to all businesses ... keeping those with past convictions out of the work force is costing the U.S. $77 billion a year (lost production and recidivism). Yanisse said of his conversations with employers who are interested in using Checkr, “Employment is the single most important influence on decreasing recidivism and where companies can make an impact to help break this cycle.” Corporate America has received this message of giving people a second chance from both Republicans and Democrats ... one of the few bipartisan issues among the parties. However, there was no easy way to do this without a significant amount of manual effort. Yanisse realized that the approach required the use of technology to make that hiring process seamless and cost efficient.

When Checkr gets a criminal background hit on a candidate, it can reach out to the candidate and allow him/her to provide some context. Checkr allows the candidate to acknowledge the charge and then provides a platform where they can provide additional information (years of being out of trouble, family situation, community service, matured since offense, etc). It allows the discussion to at least begin with the employer.

Fairness in background checks is a smart middle ground between the overreliance on screening candidates out due to criminal records and strengthening pathways towards personal and career successes.  Fair hiring is a win-win solution for businesses and communities:  businesses widen their talent pools and communities where businesses are located are rebuilt through the power of work.

Background checks are just the start for Checkr. In June they announced the launch of an end-to-end solution for job candidates to complete expungements and clear their criminal records. It is the first initiative of its kind in the industry. They encourage candidates to apply and provide some financial support to help with the legal fees associated with expungement. Checkr is donating $100,000 to provide qualified candidates expungements for free. Yanisse said, “We just received a $250,000 grant from Schmidt Futures. That money plus the $100,000 Checkr has pledged will sponsor 1,000 expungements in Q3. We hope customers and partners will donate and pledge to this cause as well.

To learn more about Checkr’s “Fairer Futures” efforts and how companies can improve their business practices, go to [eBook] The Diversity Group You’re Overlooking: How to be a Fair Chance Employer.

These are amazing people who are taking on an old problem ... and winning.

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