Allstaters make it possible for us to achieve our goals, execute our business strategy and cultivate a thriving company culture. Our employees’ skills and dedication define Allstate’s business and enable us to serve our customers. We strive for all employees to reach their potential through professional development, personalized coaching and teamwork.

Accountability

Purpose-driven companies are powered by purpose-driven people. We conduct an annual comprehensive review of our organizational health, which covers employee engagement, development, retention, compensation and inclusive diversity. Allstate provides employees with opportunities to give feedback on our ability to build a thriving culture that values and develops each and every Allstater.

Talent Review and Succession Planning

The Board of Directors reviews Allstate’s leadership succession continuously throughout the year, with rotating areas of focus each quarter.

April July September November
Topic CEO Succession Planning Talent Development Systems Senior Leadership Succession “What If?” Scenario Planning
Focus Internal succession alternatives across multiple time periods – immediate, less than 2 years, 3-5 years, and long-term under different operating scenarios Organizational health and pay fairness analyses – how the organization recruits, develops and retains people, including its inclusive diversity commitments Key leader development and retention CEO and senior leadership succession – Board dialogue in advance of unexpected succession issues

Strategic Workforce Planning

We proactively plan for workers’ shifting roles to address the current and future needs of our business. Our Strategic Workforce Planning team, within our Human Resources organization, evaluates the skills, number and location of workers we need to succeed.

The planning process helps us align our talent strategy with our business strategy. Our team reviews the areas of the business that have the most potential for disruption and works with employees to ensure the function can adapt. We are creating a skills-based taxonomy for employees in their roles today to identify those at risk and understand what skills may be required to meet the future needs of the business.

We work with Enterprise Learning & Development to implement initiatives to upskill employees to create new opportunities within the organization and help them advance beyond their current skills. In 2019, we used aggregate findings and insights to create an enterprise view of opportunities for upskilling. During 2019, we completed deep dive Strategic Workforce Planning engagements with Allstate Brand Distribution (Field & Home Office) and Allstate Technology & Strategic Ventures. These engagements helped these organizations to identify critical talent gaps and geo-locational opportunities for recruiting, retention, and development of employees for the needs of tomorrow.

As part of Allstate’s Enterprise Resource Strategy, we assess the location of employees and expected labor market trends across our talent center locations. We then forecast where we will need employees and make plans to adapt our hiring/internal placement to meet those needs. In 2019, Strategic Workforce Planning spent several months helping to redefine the ERS strategy. We used labor market data to identify which Allstate Talent Centers were best suited to hire for certain skills, and developed a common framework that was leveraged across AORs to maximize career pathing opportunities.

Allstate’s meticulous approach to workforce planning promotes the long-term value of our business and the success of our employees and stakeholders.

Policies and Procedures

Allstate maintains policies to support talent attraction and retention such as our flexible work policy and equal opportunity policy. These provide a structured approach for maintaining a company culture where all employees can thrive. We leverage our Employee Value Proposition to guide our efforts in talent attraction and management.

Our Employee Value Proposition

GOOD WORK. GOOD LIFE. GOOD HANDS.
Our Employee Value Proposition represents the things that make Allstate a great place to work. This, and much more, is all here for you.

Good work
The opportunity to make an impact through meaningful work, career growth, personal and professional development, and recognition and rewards
Good Life
Support to help you live well in all areas of your life, including physical, emotional and financial well-being, and work-life flexibility
Good Hands
Opportunity and resources to give back, and to support and strengthen local communities

Work Flexibility

Allstate is prepared for situations that require flexibility and teleworking, so our employees can still do their jobs from the safety and convenience of their homes. In response to the COVID-19 pandemic, flexible work arrangements are becoming increasingly critical to the health of our employees and our business.

Our flexible work policy consists of compressed and part-time work schedules, telecommuting, home-based work, job sharing and flexible start times. All exempt and nonexempt employees are eligible for flexible work, based on factors such as business need, work performance and job characteristics. In 2019, 45% of Allstate employees utilized flexible work arrangements, and our employee survey found that those participating in these arrangements generally reported higher levels of well-being than the overall employee population. Flexible work arrangements were frequently cited as an area Allstate is exceeding employee expectations. Internal data shows that those in flexible work arrangements receive the same rate of pay increases and promotions as those in nonflexible arrangements.

In addition to formal flexible work arrangements, Allstate encourages managers to foster a flexible work environment where employees can integrate work and life priorities. By being open and sympathetic to the needs of each employee, we can reinforce our culture of transparency, achieve stronger working relationships and promote employee retention through positive work-life balance.

Programs and Performance

Through our collective power, we harness our diverse talent to better serve customers and shareholders to be a force for good in the communities we serve.

Employee Engagement

Allstate conducts the Inspire survey every year to gather feedback about employee engagement and its drivers. 78% of all eligible employees responded to the survey in 2019, an increase from the previous year. The survey results continue to indicate that more than 80% of employees have a favorable view toward engagement at Allstate. We provide our leadership teams with feedback from the survey regarding manager effectiveness, as well as annual updates about the health of our culture to support continuous improvement.

To ensure parity in engagement across demographics, we examine survey results by race/ethnicity, gender and tenure. This process also allows Allstate to identify opportunities to provide support for specific groups. We incorporate metrics from the Inspire survey throughout our report, including this section, as evidence of strong employee engagement and effective talent management. Our engagement surveys consistently show that providing employees with exciting career paths and educational opportunities improves morale and engagement.

Employee Engagement

Employee Life Cycle Survey Program

Our Employee Life Cycle Surveys gauge the attitudes, beliefs and behaviors of our employees at different career stages so Allstate can best determine which initiatives and efforts are most important to support our employees’ satisfaction and well-being. The program includes both a 90-day retention survey to assess new hires’ integration into Allstate and an exit survey process. When an employee decides to leave Allstate, the exit survey helps us understand what they found most compelling about Allstate’s Employee Value Proposition, why they are leaving and what future endeavors they will undertake.

Workforce Insights

To sustain an efficient and skilled workforce, it is imperative that Allstate attracts and retains high-quality employees. We recognize the strategic link between what prospective and existing employees value and what we offer in exchange for their work. Improving employees’ retention and engagement improves the organization’s ability to serve customers, agents and communities – and each other.

To assess the health of our workforce culture, we carefully monitor turnover and look for insights into employee uncertainty or dissatisfaction. Turnover affects Allstate’s financial performance, through short-term impacts to productivity and the cost of recruitment, as well as long-term effects on intellectual and human capital. We estimate that the cost to replace an employee ranges from 50% to 150% of the employee’s salary, including hidden costs such as loss of productivity while the position remains open.

Workforce Insights (WFI) identifies employees who are at the greatest risk of leaving Allstate using our Predictive Attrition model, and gives their managers the chance to inspire them to stay. WFI launched two pilot studies in Allstate Brand Distribution and Allstate Technology & Strategic Ventures. In these studies, WFI provided managers with the name(s) of direct reports identified as high-risk. Using a conversation guide, we asked the manager to have a “stay conversation” with the high-risk employee. Stay conversations may cover career development, work duties and interpersonal relationships.

WFI also provides managers with two brief surveys: one to document concerns that arose from the stay conversation and another to understand how the manager addressed the employee’s concerns. These surveys provide a wealth of information to combat attrition by identifying systemic issues and the actions best suited to address them. Our goal is to improve the working experience of our employees while reducing the costs associated with attrition. In 2019, Allstate’s total employee turnover was 18.5%, and voluntary turnover was 12.2%.