JPMorgan Chase CEO Jamie Dimon challenges traditional hiring practices, arguing skills matter more than past mistakes, as his company embraces second chances for ex-felons - and hires them.
With over 240,000 employees, America's largest bank, JPMorgan, is committed to recruiting talent from various backgrounds, including those with criminal records. In a recent LinkedIn interview, CEO Jamie Dimon reaffirmed his longstanding belief that skills are as important as education in identifying qualified candidates.
While a Harvard business degree might be prominently featured on a resume, Dimon acknowledges that past struggles, though not explicitly mentioned, shouldn't be overlooked during the hiring process.
Leading JPMorgan's Second Chance Agenda, 68-year-old Dimon champions the reintegration of individuals with criminal records into the workforce, local economy, and their communities. "There are 70 million ex-felons in the US and a lot of those folks, we met with them, ... can't get a car, can't get housing," he said.
"A lot of them are married, they don't want to go back, they need help, they need skills, so what do you do? We got rid of 'check the box', and these are not hardened, violent criminals—but we've hired something like four or five thousand ex-felons, a lot of them are misdemeanours. It just shows you there's a lot of talent out there."
A Second Chance Initiative
JPMorgan's data indicates a newfound talent pool. In 2023, nine percent of the bank's US hires possessed prior criminal records irrelevant to their job duties. The prior year, the financial giant hired over 4,600 individuals with "criminal backgrounds."
Despite receiving a record-breaking $36 million compensation package in 2023, Fortune report, Dimon questioned some traditional markers of candidate potential. He further emphasised Ivy League credentials or stellar grades don't necessarily translate to exceptional work performance or character.
Dimon noted when you consider people's skills, it's incredible how talented some individuals are in specific areas, even if those skills aren't reflected on their resumes. "And of course, if someone overcame unbelievable hardships in life, would you incorporate that when you hire them? I would. I look at all those things," he added.
National data reveals that one in three Americans possesses a criminal record. Despite fulfilling their legal obligations, these individuals often face substantial hurdles to employment and economic mobility, resulting in billions lost to the US economy each year.
Through its advocacy efforts and internal hiring practices, JPMorgan is committed to dismantling some of these barriers. The Investment banking company sees "the power in second chances every day." Notably, JPMorgan's US hiring demonstrates a commitment to inclusivity.
Nearly 10 percent of the bank's annual new US hires possess prior arrest or conviction records unrelated to their job duties. This achievement stems from JPMorgan's commitment to fair hiring practices.
By "banning the box" – eliminating the requirement for criminal history disclosure on applications – and advocating for supportive legislation, JPMorgan is actively expanding access to meaningful careers in financial services for a wider talent pool.
Building A Stronger Workforce
JPMorgan isn't alone in this endeavour. The Second Chance Business Coalition, a group of over fifty companies, advocates for reducing barriers to employment.
Research published in the Journal of Criminal Law and Criminology highlights a compelling fact: individuals experience an average twenty percent increase in potential earnings upon re-entering the workforce with a clean slate.
This highlights the economic benefits of second-chance hiring practices, not just for individuals but for society as a whole.
"If you paid your debt to society, you should be allowed to work," Dimon, who faced widespread criticism in May for suggesting that average Americans are financially stable despite rising inflation and stagnant interest rates straining household budgets, asserts succinctly.
The recruitment landscape may face significant changes in the coming year, with reports suggesting 40 percent of companies are considering AI-powered applicant interviews. However, the extent to which leading organisations will prioritise expanding hiring pools to include individuals with criminal backgrounds remains to be seen.
