KPMG unlocks previously locked up talent.

KPMG, one of the Big Four accounting firms, has recently announced its commitment to expanding its hiring of ex-prisoners, following a successful two-year trial. This initiative not only marks a significant shift within professional services firms but also highlights a major corporate contribution to societal rehabilitation and economic growth.

The context of this initiative is set against a backdrop of significant challenges within the criminal justice system, where reoffending remains a critical issue. According to data from the Ministry of Justice, 37% of individuals released from custody in 2022 reoffended within a year. However, the likelihood of reoffending drops dramatically, by up to 9 percentage points, when ex-offenders secure stable employment. This stark statistic underscores the transformative potential of employment on individuals’ lives post-incarceration.

Recognising this, KPMG has positioned itself as a pioneer among white-collar firms in the integration of ex-offenders into the workforce. The move not only assists in addressing the reoffending crisis, which reportedly costs the UK around £18 billion annually, but also taps into a pool of potential employees who can contribute to filling the nearly one million job vacancies across various sectors in the UK economy.

Prisons and Probation Minister Ed Argar has articulated the government’s stance, emphasising the dual necessity of paying societal debts and enabling positive life choices post-release. KPMG’s initiative is thus seen as a significant endorsement of the government’s broader strategy to engage more large businesses in this cause.

KPMG’s pilot program launched in 2022 has involved ex-offenders being placed across various divisions within the firm, including senior roles in technology development and consulting. This approach not only challenges the preconceived notions about the capabilities and potential of ex-offenders but also sets a precedent for other firms in professional services and beyond.

KPMG’s 22,000 UK staff know about the programme for prison leavers, although they do not know their identities, and there has reportedly been no negative feedback about the initiative.

The positive outcomes of the pilot program, as reported by Jon Holt, KPMG UK’s chief executive, indicate that these hires are not only integrating well but are thriving and contributing significantly to the firm’s success. Such results have encouraged KPMG to not only continue but also expand this hiring initiative.

The social impact of this program extends beyond just employment. KPMG has partnered with Redemption Roasters, a company that runs a coffee roastery inside HMP The Mount (a prison), to supply coffee to KPMG’s London headquarters café. This partnership highlights how businesses can play a multifaceted role in supporting rehabilitation by promoting practical skills and supporting reintegration efforts.

Critically, the broader implications of KPMG’s strategy are profound. By integrating ex-offenders into high-value, skilled positions, KPMG challenges and potentially reshapes public and corporate perceptions about the post-incarceration trajectories of these individuals. Furthermore, it underscores the broader economic and social benefits of such integration, which include boosting productivity, filling critical labor market gaps, and reducing the economic strain of reoffending.

For business students and future leaders, this case presents multiple learning points:

1. Corporate Social Responsibility (CSR): How businesses can extend their CSR to include progressive employment practices that have significant social impacts.
2. Strategic Human Resource Management: The importance of inclusive hiring strategies that not only address labor shortages but also contribute to societal rehabilitation.
3. Business and Society: How firms can play a pivotal role in addressing societal challenges, thereby enhancing their brand reputation and building long-term loyalty among consumers and employees alike.

In conclusion, KPMG’s initiative offers a compelling blueprint for how businesses can effectively contribute to societal advancement while simultaneously enhancing their operational capabilities. It encourages a re-evaluation of the potential within this often-overlooked demographic of ex-offenders and serves as an inspiration for future business strategies that harmonise economic objectives with social needs.