Five Good Reasons to Hire the Unemployed

It's official: you need a job to get a job.

The National Employment Law Project, which earlier this year helped bring attention to help wanted ads saying the jobless need not apply, said the situation is getting worse.

"We hear regularly from unemployed workers — mostly older Americans — who despite years in the labor force and significant experience are told they will not be considered for a job once employers learn they are not currently working,” NELP Director Christine Owens told the U.S. Senate Committee on Health, Education, Labor and Pensions on Dec. 6.

Her testimony backs up news stories such as these, reporting that many companies are posting want ads with a devastating caveat: Those without jobs need not apply for them. These companies seem to be using employment status as a proxy for competitiveness — and companies want competitive.

NELP estimates that more than 25 million Americans are without full-time work, including those who are underemployed or who have given up looking for full-time jobs. With a U.S. workforce of about 155 million, employers who refuse to consider the job-hunting jobless are effectively banning 16% of all potential employees from ever working at their company — even though one or more of them might have the in-demand skill set and experience they’re looking for.

That just seems like a bad idea. Which is why we canvassed hiring experts such as Bob McIntosh, a career counselor in Lowell, Massachusetts, who has spoken out in favor of hiring unemployed people, and checked out staffing sites promoting the jobless. With their help, we've compiled our own list of good reasons to hire the unemployed.

Note: We’re leaving out the ethical considerations. They’re either obvious to a particular company or they’re not — and I doubt we’re about to change their minds.

1. It's good public relations. Become a hero by letting it be known that you're interested in hiring the best folks for the job, regardless of their current employment status. This will not only benefit your brand, but it may draw talent to your company (people who like the way you do business) and inspire loyalty among the staff.  

2. Potential tax breaks. In 2010, the IRS offered two tax breaks to employers who hired people without jobs as part of the Hiring Incentives to Restore Employment (HIRE) act. Another new law offers incentives to businesses that hire unemployed veterans, enabling companies to claim a tax credit of $5,600 or more if the service member has been looking for work for six months or longer.  

3. You may be overlooking strong candidates. Don't automatically blame someone for their unemployed status. The conventional wisdom — that companies let go of their least effective or least productive workers — collapses when companies shut down entire divisions or departments or go through multiple rounds of layoffs. “There’s so many reasons one could be unemployed, due to no fault of his or her own,” says Helen Norton, a law professor at the University of Colorado Law School who testified before the U.S. Equal Employment Opportunity Commission about discrimination issues affecting the jobless.

4. Your churn rate will decline. Someone who's been out of work for a while won't be in a hurry to move to another job. They are highly motivated to keep their job and may be among your most loyal workers.

5. Don't let others define good employees for your company. Hiring someone who is currently employed doesn't necessarily mean you're hiring the best candidate. It means you're hiring someone who fits another company’s definition of a superstar. Good recruiters, and good hiring managers, know that a superstar at one company can crash and burn at another. Find the person who will be a superstar for you, not someone else.

One more thing: For those who haven't found work in a while, McIntosh recommends becoming a volunteer. Yeah, yeah. You've heard that before. But his reasons make a lot of sense.

First, volunteering can help keep your skills current or allow you to learn new skills, and having skills is what makes you competitive.

Second, it offers opportunities to meet new people. Why is that critical? Because applying for jobs through online job boards may be a big waste of time. Most people find work by networking. The bigger your contact list, the better the chances you'll hear about "hidden jobs," or those that aren't being advertised, McIntosh says. In the best case, they may refer you for a job. According to a July survey by Jobvite, recruiters said that referrals are the top rated source for finding job candidates.  

It's a new year, the perfect time to reconnect with friends and former colleagues. You never know who might lead you to a job, so don't be afraid to ask. — CG

Help wanted ad image courtesy of flickr user bjmccray