Gregg Keesling: State should invest in employment social enterprises

Every year, thousands of Hoosiers return home from prison ready to work, yet many lack stable jobs and support. Programs like RecycleForce help returning Hoosiers earn more and reduce their likelihood of returning to prison, which benefits families, employers and taxpayers alike.

Indiana has set the stage for a better approach. Last March, the General Assembly unanimously passed bipartisan legislation led by Rep. Carey Hamilton and Sen. Michael Crider and signed by Gov. Mike Braun that formally recognizes employment social enterprises as a distinct business structure in Indiana law.

ESEs are businesses built to do good — they provide jobs, training and support to people overcoming experiences like incarceration or homelessness.

RecycleForce is an ESE that serves as a vital bridge for individuals transitioning out of the Indiana Department of Correction. By providing an immediate job, specialized training and career support to those re-entering the community, ESEs directly reduce recidivism and the high costs of incarceration. With the new law in place, Indiana can better leverage ESEs as a core part of workforce development.

The RecycleForce ABC Model begins with an “any job,” an immediate transitional position offering not just a wage-paying job but also wraparound services, industry-recognized credentials and real work experience. Workers progress to a “better job,” often through our partner staffing enterprise, Keys2Work. Finally, they are ready for a “career” with central Indiana employers as they complete parole or other oversight. This stepped-up approach increases workforce participation while gradually reducing correctional supervision.

The evidence is clear. A rigorous, randomized controlled trial, the gold standard of social research, showed RecycleForce employees earned nearly $5,000 more than their peers and were more likely to remain employed. Just as important, I see the impact every day in the stability, confidence and momentum our employees gain.

So how can Indiana maximize the promise of the new ESE law?

First, prioritize ESEs in workforce strategy. State incentives should align with prison re-entry and transitional job programs through Braun’s January executive order re-establishing the State Workforce Development Board. Indiana should leverage the governor’s budgeting authority to allocate 15% of federal Workforce Innovation and Opportunity Act dollars for innovation, particularly efforts to scale ESEs and expand employer-aligned approaches like transitional jobs and on-the-job training. The state should prioritize programs with proven outcomes for economic mobility, consistent with the governor’s history of supporting evidence-based workforce strategies, and take advantage of the U.S. Department of Labor’s recent invitation to cut red tape to support innovation.

Second, expand apprenticeship opportunities. ESEs’ employer alignment and training focus make them ideally positioned to leverage apprenticeships to help workers earn higher wages and fill critical workforce needs. The U.S. Department of Labor recently announced $145 million for pay-for-success apprenticeship approaches, which Indiana can use to maximize outcomes.

And third, encourage growth through local government and philanthropy. Offices like the newly created Indiana Office of Entrepreneurship and Innovation can support ESEs alongside traditional entrepreneurs and advance workforce objectives, including Braun’s Executive Order 25-46, aimed at improving employment and housing for returning residents.

Indiana has a choice: Continue to manage re-entry or invest in solutions that strengthen families, employers and communities. Employment social enterprises do exactly that. Federal, state and local leaders have the opportunity and responsibility to realize the full promise of ESEs in driving good jobs and a strong economy. It’s not just the compassionate choice; it’s the smart one.•

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Keesling is president at RecycleForce.