The construction industry faces persistent labor shortages, high turnover rates, and increasing recruitment and training costs. One of the most effective yet underutilized strategies for addressing these challenges is hiring returning citizens. Not only does this approach provide access to a stable, skilled workforce, but it also delivers measurable financial benefits to employers.
Key ROI Factors
1. Lower Recruitment & Turnover Costs
- High Retention Rates: Returning citizens often demonstrate greater job loyalty, reducing the need for frequent rehiring (National Employment Law Project, 2021).
- Reduced Hiring Costs: Workforce development organizations, pre-apprenticeship programs, and trade unions frequently provide pre-trained candidates, minimizing recruitment time and expenses (Urban Institute, 2018).
- Lower Turnover: The average turnover rate in the construction industry hovers around 57% annually, whereas employers who hire returning citizens report significantly lower turnover rates (U.S. Bureau of Labor Statistics, 2023).
2. Tax Credits & Hiring Incentives
- Work Opportunity Tax Credit (WOTC): Employers can receive up to $2,400 per hire for individuals with a felony record (U.S. Department of Labor, 2023).
- Federal Bonding Program: Offers up to $25,000 in free fidelity bonding, mitigating employer risk (U.S. Department of Labor, 2023).
- State & Local Incentives: Some jurisdictions provide grants and wage subsidies for second-chance hiring in construction (Council of State Governments, 2022).
3. Skilled Labor Pipeline – Many returning citizens complete vocational training while incarcerated, gaining skills in:
- Carpentry, electrical work, HVAC, plumbing, and masonry (RAND Corporation, 2021)
- Heavy equipment operation
- Welding and metalwork
- Pre-apprenticeship and reentry programs, such as Project JumpStart, Helmets to Hardhats, and Second Chance Construction Training, prepare job-ready candidates (National Skills Coalition, 2022).
4. Productivity & Work Ethic
- Employers report that returning citizens often outperform general labor hires in reliability and commitment (Society for Human Resource Management, 2020).
- Construction jobs offer clear career pathways, increasing motivation for long-term employment (Brookings Institution, 2019).
5. Safety & Risk Management
- Studies show that workers with a criminal record are no more likely to have workplace safety issues than other employees (American Journal of Industrial Medicine, 2020).
- Many reentry programs provide OSHA 10 or 30 certification, enhancing job site safety (National Institute for Occupational Safety and Health, 2022).
Case Studies & Real-World Impact
1. Turner Construction
- Partnered with workforce programs to hire returning citizens.
- Reported a 20% lower turnover rate compared to industry averages (Harvard Business Review, 2021).
- Saved thousands per hire in recruitment and training costs.
2. Associated Builders & Contractors (ABC) Member Companies
- Companies participating in second-chance hiring initiatives saw improved retention and fewer absentee issues (Associated Builders & Contractors, 2022).
- WOTC savings combined with training cost reductions led to an estimated ROI of $5,000+ per worker in the first year.
3. Dave’s Killer Bread Foundation (Manufacturing, Distribution & Adjacent Trades)
- 30% of employees are returning citizens.
- Turnover among this group is lower than the general workforce (Dave’s Killer Bread Foundation, 2021).
- Increased brand reputation and social impact led to higher consumer trust and sales growth.
Estimated ROI Calculation for Construction Employers
| ROI Factor | Estimated Savings Per Hire | Total Savings (10 Hires) |
| Lower Turnover & Recruitment Costs | $3,000–$5,000 | $30,000–$50,000 |
| Work Opportunity Tax Credit (WOTC) | Up to $2,400 | $24,000 |
| Training Cost Reduction | $2,000+ | $20,000+ |
| Federal Bonding Program Savings | ~$1,000 | $10,000 |
| Total Estimated ROI | $8,400+ per hire | $84,000+ |
Final Takeaway
For construction firms, hiring returning citizens isn’t just about social responsibility—it’s a financially smart workforce strategy. Between lower turnover, tax incentives, and access to a skilled labor pool, companies stand to gain significant cost savings and productivity benefits. Programs like Project JumpStart provide employers with a pipeline of trained, motivated candidates ready to contribute on day one.
Investing in second-chance hiring isn’t just good for individuals reentering the workforce—it’s a win for businesses and the construction industry as a whole.
PJSI recruits students with a variety of backgrounds including second chance. Learn more about how Project JumpStart can help your company build a stronger workforce. Contact us today!