5 Financial Benefits of Hiring Ex-Offenders: A Smart Business Move

When businesses talk about inclusive hiring, the conversation often centres around doing the right thing. However, hiring individuals with convictions is not just an ethical choice, but a smart, strategic, and financially sound one.

This article explores the financial benefits of hiring ex-offenders, moving the conversation beyond social impact and into strategic value.

Exploring the financial benefits of inclusive hiring

Inclusive hiring can offer real financial advantages for your business. From recruitment savings to long-term retention, second chance employment has a bottom-line impact worth paying attention to. Let’s explore five significant business benefits of hiring inclusively.

1. Inclusive recruitment might save you more than you think
   

Recruitment is a significant expense for UK businesses. Estimates from the CIPD suggest that hiring a non-managerial employee typically costs around £2,000, once you factor in advertising, interviews, onboarding, and initial training. But what happens when the person you hire stays longer, performs better, and integrates quickly into the team?

Companies who have embraced inclusive hiring

Timpson, the retail chain known for its inclusive employment practices, reports that 75% of their ex-offender hires stay with the company long-term, well above the average for the retail sector. 

Halfords has observed similarly positive outcomes. Its prison academy graduates not only perform well, but are more likely to remain in their roles than other entry-level staff.

Marks & Spencer has also highlighted the strong sense of loyalty among ex-offenders, with employees often expressing how vital their job is to keeping them on the right path.

2. Creating inclusive recruitment pipelines can cut hiring costs
   

Another major benefit comes from how ex-offenders are recruited. Businesses that work directly with prisons or specialist charities often bypass traditional, expensive hiring channels altogether. Instead of relying on costly job adverts or agencies, employers can tap into ready-to-work candidates through schemes like the Ministry of Justice’s New Futures Network.

In fact, more than 400 UK businesses now partner directly with prisons, accessing candidates through job fairs, release on temporary licence (ROTL) schemes, and in-prison training programmes. These approaches streamline the hiring process and reduce the time and money typically spent searching for qualified applicants.

Greene King - A leading example in inclusive recruitment pipelines

Greene King, for example, has hired over 250 ex-offenders since 2019 by working with prisons to train candidates in hospitality before release. The pub chain even established prison-based training kitchens to build a reliable pipeline of chefs, addressing a long-standing recruitment gap in the sector.

Schemes like ROTL offer additional flexibility by allowing employers to evaluate potential hires in a real-world setting before making a permanent offer. Many candidates also arrive with trade qualifications and vocational training gained through prison education programmes, further reducing onboarding and training costs for employers.

3. Gain access to a pool of talented, skilled workers
   

With over 12 million people in the UK holding a criminal record, the potential of this workforce is enormous, and often overlooked. Far from being a hiring risk, ex-offenders frequently bring valuable experience, qualifications, and a deep motivation to prove themselves.

In the 2022–23 financial year, over 63,000 prisoners in England and Wales enrolled in work-related education programmes, ranging from construction and engineering to hospitality and IT. Many of these individuals leave prison with recognised certifications, and many more have the soft skills employers value: reliability, punctuality, and a strong work ethic.

According to government-commissioned surveys, over 90% of employers who have hired ex-offenders rate them as good at their jobs, and more than 80% report high levels of motivation and attendance. Managers regularly observe that these employees contribute to a more resilient and committed workforce, with some going on to leadership positions within their organisations.

4. Reduced reoffending means wider financial wins
   

While not a direct line on a company’s balance sheet, the role of employment in reducing reoffending carries significant economic weight. The cost of reoffending to the UK is estimated at £18.1 billion annually. Stable employment has been shown time and again to be one of the most effective ways to prevent reoffending, transforming lives while also reducing the strain on public services.

By providing job opportunities, employers contribute to cutting this wider social cost. And while the financial benefit may seem indirect, the implications are real: safer communities, lower criminal justice spending, and a more inclusive, productive economy. When you hire someone who might otherwise return to prison, you are supporting a shift from dependency to contribution.

5. Enhancing brand reputation and winning new business
   

There’s also a growing reputational and commercial benefit to inclusive hiring. Today, social value matters, not only to customers but to clients and procurement teams. In recent surveys, 92% of employers said that hiring ex-offenders improved their brand image and helped them secure new contracts. 

For public sector businesses in particular, demonstrating a commitment to social value can influence scoring, meaning inclusive hiring can open the door to new opportunities.

Public support can strengthen your brand

Consumer sentiment supports this shift, too. Around three-quarters of people in the UK say they would be happy to buy from a company that employs ex-offenders, while 80% believe businesses offering second chances are contributing positively to society.

Companies like Timpson, Greene King, and Virgin Group have used their inclusive hiring strategies not just to fill roles, but to enhance public trust, media attention, and internal morale. What begins as a socially responsible decision often becomes a commercially powerful one too.

Summing up: Smart business, not just second chances

The data tells a clear story. Hiring ex-offenders isn’t just a gesture of goodwill, but a strategic workforce decision with measurable financial benefits. From lower recruitment costs and higher retention to filling critical skills gaps and improving team performance, businesses that open their doors to individuals with convictions are gaining far more than they give.

Offploy is here to help you take the next step, supporting you with advice, resources, and connections to turn inclusive hiring into lasting value for your business.

To get started on your journey to inclusive hiring, visit our employer page here, or feel free to contact us directly. We’ll be happy to answer any questions you may have.