Applicant Reactions to Criminal History Hiring: Stereotype Processes, Diversity Rationale, and Individual Difference

Given the recent evaluation and reduction of Diversity, Equity, and Inclusion (DEI) initiatives in response to stakeholder concerns, we consider the context of applicant reactions to Fair Chance Hiring policies used to support the hiring of a stigmatized population: individuals with a criminal history. We draw on stigma and stereotyping literatures to examine non-stigmatized (those without a criminal history) applicants’ reactions to organizations’ use of Fair Chance Hiring language in recruitment. Specifically, we suggest that these third-party applicants will assign negative stereotypes to organizations with Fair Chance Hiring initiatives, subsequently impacting their job pursuit intentions. We also draw upon the diversity policy rationale literature to explore the effectiveness of moral and business case justifications in reducing negative stereotypes and increasing job pursuit intentions. Additionally, we consider an identity-based individual difference that qualifies these relationships. Through a vignette experiment and two behavioral experimental simulations exploring both active and passive job seekers, our results show that companies with Fair Chance Hiring policies are assigned higher levels of negative stereotypes, and that these stereotypes result in lower job pursuit intentions. However, using moral case (but not business case) justifications reduces applicants’ assignment of negative stereotypes to companies with these policies and improves applicants’ job pursuit intentions. In all, our results suggest that applicants’ negative stereotyping of organizations for upholding certain DEI policies is not inevitable; there are actionable approaches organizations can take to reduce negative reactions. Contributions and practical implications are discussed.