Inclusive diversity & equity
Inclusive Diversity & Equity is a core value for Allstate and the foundation of Our Shared Purpose. Allstate's IDE strategy is focused on the four pillars of business practices, culture, people and community. Through diverse talent, perspectives and experiences, we foster an inclusive and equitable workplace.
Allstate works to develop and retain a workforce and supplier base that mirror the diversity of our customers and communities. Allstate's performance in workforce diversity meets or exceeds external benchmarks. In 2022, we made DiversityInc'sTop 50 Companies for Diversity for the 19th consecutive year. Allstate has also been recognized by many supplier diversity certification organizations, including the Women's Business Enterprise Networking Council for 10 years for our success in supporting women-owned businesses. Allstate provides active mentorship to student, women-owned companies through the Collegiate Accelerator.
In 2022, women made up approximately 58% of our workforce, and 42% of our employees were racially or ethnically diverse. We're working to increase diversity at top levels. For more on our company demographics, please see our EEO-1 report.
In 2022, we expanded our IDE work throughout all areas of our business. Allstate thrives when our collective differences, backgrounds, educations and cultures create an inclusive environment where diverse perspectives are encouraged and embraced.
Putting principles into practice
Allstate is an inclusive workplace that strives to provide employees, vendors and our community with equitable opportunities.
Inclusive Diversity & Equity is a priority for Allstate. Allstate's IDE strategy is actively supported by the Board of Directors and championed by Allstate's IDE team, Sustainability team and ESG Steering Committee. Allstate strives to become the differentiated IDE leader among major corporations by eliminating inequities in our business practices, culture and communities.
Allstate's multi-year IDE strategy builds on existing efforts around hiring, talent development, investing and supplier diversity. We focus on diverse perspectives, experiences and engagement that contribute to a more inclusive and equitable workforce.
We strengthen our commitment and accountability to drive greater results through our enterprise goals:
- Allstate strives to increase female and racially and/or ethnically diverse workforce representation and has set multi-year targets to achieve this goal.
- We accelerate development, advancement and retention of diverse talent through sponsorship, mentorship and leadership development programs.
- We advance Allstate's commitment to the OneTen initiative by broadening the path for Black talent without a four-year degree into the talent pipeline and creating a more equitable environment to attain family-sustaining jobs.
- We engage our diverse network of Allstate agents across the country to mirror the communities where they live and serve.
- Allstate's talent management strategies aim to improve the skills and capabilities of all employees.
- Allstate integrates Inclusive Diversity & Equity into our core policies, processes and decision-making.
- Business practices goals are anchored by our commitment to diverse supplier spending and investing with diverse sponsors and managers.
- IDE is one of Allstate's core values and a foundation of Our Shared Purpose. We're creating a culture of inclusivity and equity.
- We measure Allstate's culture of inclusivity and employee sentiment through annual and quarterly engagement surveys.
- We encourage and increase IDE mindsets and behaviors through various learning experiences and engagement with Employee Impact Groups (EIGs).
- Allstate advances racial equity by contributing funds through The Allstate Foundation.
- We create and strengthen ongoing relationships with diverse external organizations, including minority-serving institutions such as historically Black colleges and universities and the Hispanic Association of Colleges and Universities.
Policies and practices
Allstate's corporate policies and practices related to IDE help guide our daily operations. Our Shared Purpose – which outlines Allstate's values, operating standards and behaviors – highlights IDE as a core value. We hold each other accountable to encourage and embrace our collective differences. We work harder, meet customer needs more effectively and identify more innovative ideas when our differences are embraced and we are encouraged to be our authentic selves. Our success comes from a chorus of many different voices. At Allstate, every voice counts.
We seek out individuals with varying characteristics, values and beliefs, and backgrounds and experiences. At Allstate, employees are not just empowered to help shape our future, they are expected to lead the way.
Employee Impact Groups (EIGs)
In 2022, Allstate renamed its Employee Resource Groups as Employee Impact Groups to focus on their impact on integrating IDE into business practices as well as culture. Allstate's EIGs are diverse communities that enhance the employee experience through engagement, development and collaboration. They bring value to participants and Allstate through cultural education and awareness, market and community outreach, professional development, recruiting, retention, and customer engagement. EIGs were instrumental in coordinating and celebrating heritage months and providing enriching experiences for all Allstaters. Allstate launched a new EIG in January 2023: Native American Peoples at Allstate.
We also have Business Impact Groups (BIGs), voluntary employee-led groups that create opportunities for employees to work together to create business solutions. BIGs focus on creating business impact and serve as an incubator for innovation, collaboration and professional development.
In 2022, more than 7,700 employees participated in an EIG or BIG, with 47% of those employees participating in two or more groups. Allstate allocated 28% of our total IDE budget to EIGs to demonstrate our commitment to financially supporting the positive impacts these groups have on our business, workforce and EIG members. While this appears to be a substantial decline from the 48% reported last year, it is due to a change in calculation methodology rather than a decrease in benefit to the EIGs. Last year, costs associated with our external partnerships were included in the EIG budget, but this year those costs were removed because external partnership resources and services benefit the whole enterprise, not just EIGs. For the second year, The Allstate Foundation also teamed up with EIGs to distribute grants to organizations that best exemplify their missions, distributing a total of $500,000 to nonprofits selected by the EIGs.
Employee Impact Groups at Allstate:
- Allstate Asian American Network
- African American Working Network
- Abilities Beyond Limitations and Expectations
- Allstate PRIDE
- Allstate Veterans Engagement Team and Supporters
- Allstate Women's "I" Network
- Families at Allstate Matter
- Native American Peoples at Allstate
- Professional Latino Allstate Network
Business Impact Groups at Allstate
- Young Professionals Organization
Allstate strives to improve the communities where we work, live and connect through responsible supply chain practices, including increasing our support of diverse suppliers. Allstate's diverse suppliers must provide certification as a minority-, woman-, veteran-, LGBTQ- or disabled-owned business by one of the following councils:
- National LGBT Chamber of Commerce (NGLCC)
- National Minority Supplier Development Council (NMSDC)
- Women's Business Enterprise National Council (WBENC)
- National Veteran-Owned Business Association (NaVOBA)
- Disability:IN (formerly U.S. Business Leadership Network)
- WE Connect International
- Certification from local, state or federal government agencies
- We include the following diverse categories in our supplier diversity efforts:
- Disabled business enterprises
- Disabled veterans' business enterprises
- Disadvantaged business enterprises
- Historically Black colleges and universities
- Historically underutilized business zone
- Lesbian-, gay-, bisexual-, transgender-, questioning-owned business enterprises
- Minority-owned business enterprises
- Small Business Administration 8(a) program
- Woman-owned business enterprises
- Small disadvantaged business enterprises
- Veteran-owned business enterprises
In 2022, our supply chain partners included 2,500 diverse suppliers, a 25% increase from 2021, and we spent $386 million with diverse suppliers, compared to $366 million in 2021. We are especially proud of this outcome because we started the year with a $100 million deficit as a result of two diverse suppliers selling their businesses to new owners that do not meet our diverse supplier criteria. In 2022, we also extended our focus on creating economic equity through women-owned suppliers in India. Through that expansion we identified $4 million in spending that is being directed toward women-owned businesses.
We also revised our approach to contracting. Instead of distributing formal requests for proposals, we identified diverse suppliers, built relationships with them, assessed their capabilities, contracted with them, and shared their core competencies with key decision-makers. This allows us to significantly increase spending with diverse suppliers who have historically not been offered that level of opportunity with Allstate.
A recent analysis indicated that $1 spent with Allstate's diverse suppliers drives $1.80 in total economic production. This means the economic impact of Allstate's purchases with diverse-owned suppliers in 2022 is estimated at over $694 million, which supports jobs and wages/benefits within that supply chain and the communities where those businesses operate.
Building ties with diverse groups through memberships
Allstate works with select organizations to conduct national benchmarking, connect with diverse suppliers and identify successful practices in supplier diversity. Allstate is a member of the following organizations, among others:
- Financial Services Roundtable for Supplier Diversity (FSRSD)
- National LGBT Chamber of Commerce (NGLCC)
- National Minority Supplier Development Council (NMSDC)
- The Conference Board Supplier Diversity Leadership Council
- Women's Business Enterprise National Council (WBENC)
In 2022, Allstate's senior vice president of Sourcing and Procurement Solutions became a member of the Board of Directors of WBENC. We also sponsored its Women of Color (WOC) Student Entrepreneurial Program at Florida A&M University to help develop the next generation of female entrepreneurs of color. This resulted in the award of seed money to support three Black female student entrepreneurs in starting or expanding their businesses.
In 2022, Allstate expanded the focus of our IDE program. In addition to pursuing Inclusive Diversity & Equity in our workforce and among our suppliers, we are now considering how every aspect of our business can benefit from this work. We launched the Allstate IDE A.C.T. (Accountability, Clarity, Transparency) Framework to integrate IDE strategy, goals and collaboration across Allstate. This model ensures joint accountability, drives lower-cost execution, reduces complexity by clarifying roles and creating an IDE ecosystem of sharing and business area partnership with IDE leadership. It creates stamina for our IDE strategy by holding business areas accountable to drive IDE goals locally. Through this framework, Allstate is creating better cross-company connections, optimizing the impact of IDE.
Programs and performance
Allstate's inclusive culture and emphasis on diversity and equity are strengthened through day-to-day activities and practices that encourage us to focus on our values.
In 2022, Allstate implemented a monthly Inclusive Diversity & Equity Talent Scorecard to track progress against our vision of becoming a differentiated leader in IDE and to develop a workforce that mirrors the diversity of the communities and customers Allstate serves. Our IDE Talent Scorecard holds leaders accountable for strategic people and culture change. It assesses the gender and racial/ethnic diversity of Allstate's current talent pool, as well as the diversity within each phase of the talent lifecycle. The first of these monthly scorecards was produced in June, and has continued since.
In 2022, we established roadmaps for using data and technology to help select the right talent for roles while eliminating bias from the process. A vendor for a talent intelligence platform will be selected in 2023, with implementation in 2023 and 2024.
Our IDE Talent Scorecard helps Allstate's Talent Acquisition team monitor workforce demographics. That's how we measure the success of initiatives to recruit, support and advance diverse talent.
We partner with our Employee Impact Groups and the external organizations below to encourage a more diverse referral pipeline:
- Association of Latino Professionals for America
- Black Data Processing Associates
- Blacks United in Leading Technology International
- Corporate America Supports You
- Hispanic Alliance for Career Enhancement
- International Association of Black Actuaries
- Microsoft Software and Systems Academy
- Military Spouse Employment Partnership
- National Association of Black Accountants
- National Association of Hispanic Real Estate Professionals
- National Black MBA Association
- National Sales Network
- National Society of Black Engineers
- Path Forward
- Society of Hispanic Professional Engineers
These recruitment efforts are supported by initiatives including:
- Our apprenticeships in Human Resources, Cybersecurity, and Allstate Technology.
- Our Returnship program, which focuses on mid-level software engineers returning to the workforce after a gap in employment due to caregiving.
- The Asset Manager Diversity Accelerator (AMDA) program we launched with William Blair and LGIM America in 2022. This two-year rotational development program supports diverse and under-represented job seekers in the asset management field.
- Our work with programs like Junior Achievement and One Million Degrees that encourage youth empowerment through education initiatives, including career programming and mentorship.
- Our support of Bottom Line, an organization that partners with degree-aspiring students of color from under-resourced communities to get into and through college and successfully launch a career.
- The Externship program we hosted in 2022 with Bottom Line students, which included job shadowing, professional development and skill building.
Work with Historically Black Colleges and Universities (HBCUs)
In 2022, Allstate deepened its work with historically Black colleges and universities (HBCUs). Allstate awarded Sales Leadership scholarships to students at 27 HBCUs. This is the first step in a multiyear program where HBCU students can apply for additional scholarships and internships, become licensed and eventually join the company full time. In December 2022, Allstate Government and Industry Relations and our Inclusive Diversity & Equity team hosted a meet and greet with Rep. Nikema Williams of Georgia, Allstate leaders and select HBCU scholarship recipients. Allstate is a long-standing sponsor of the HBCU Celebration Bowl and embarking on a new partnership as a presenting sponsor of the 2023 HBCU All-Star Battle of the Bands.
Performance and pay practices review
In 2022, we increased our minimum wage to $17 to $20 per hour, depending on location, the second increase in the last two years. We analyze pay equity every year, comparing the pay of men and women, and non-minorities and minorities in similar jobs. If we identify statistically significant gaps in pay, we make adjustments. In 2022, we added pay ranges to 100% of our job listings and began offering Performance Stock Awards for leaders who meet Inclusive Diversity & Equity goals.
Workforce Inclusive Diversity & Equity training
Allstate educates recruiters, managers and hiring managers to foster inclusive hiring and ensure diversity and equity are valued in the workplace. We require all new employees to complete Inclusive Diversity & Equity training. It includes topics such as self-awareness regarding cultural identity and unconscious bias, providing tools to help employees create a more inclusive environment. In 2022, Allstaters completed more than 31,000 IDE courses.
In 2022, we did an audit of our existing IDE training and launched a new IDE education strategy to build intercultural competence and an inclusive culture. We measure the impact of course offerings on our employees and our business.
We offer employees a Disrupting the Unconscious Bias of Cultural Fit course to target the ways we may unconsciously label diverse candidates as not "the right fit" for a role. The course presents new ways to evaluate how everyone can add to the organization and create impact. Multiple business units have included this course in their leadership training, and 2,720 employees completed it in 2022. To encourage inclusive belonging at Allstate, the course From Microinequities to Inclusion: Understanding and Addressing Subtle Expressions of Bias educates on microinequities and allyship. It was completed by 13,387 employees in 2022.
We host programming on critical diversity and equity topics, including gender identity, religion in the workplace and generational differences. This content informs and often becomes embedded into management development training. This is particularly true for topics aimed at deepening understanding about systemic racism, oppression and equity. To increase knowledge and awareness and build dialogue among team members, we offer employees an Anti-Racism Resource Center and an Inclusive Diversity & Equity toolkit.
Training the next generation of diverse suppliers
During the annual Allstate Supplier Diversity Exchange, diverse suppliers and startups network with key Allstate decision-makers and our major suppliers and strategic partners. The program helps Allstate support businesses in underserved areas and helps participating companies become better positioned to compete for contracts.
In 2022, we expanded the Supplier Diversity Exchange and renamed it the Business Diversity Summit. The weeklong intensive training event had over 2,100 attendees, 30 sessions and dozens of speakers. We expanded the audience to include Allstate employees, diverse and prime suppliers, and individuals from academia and government. Recognizing the overlap in third parties contracting across the insurance industry and Allstate's power to drive change, we also invited Allstate peers. While these companies are competitors in the traditional business sense, we appreciate the value of their collaboration toward a diverse and sustainable supply chain.
Supplier diversity – the legacy
Since 2004, Allstate has spent a total of $5.6 billion with diverse suppliers. We're taking a more holistic approach to impacting our supply chain, going beyond recruiting, supporting and increasing our spending with diverse tier 1 suppliers (the companies we purchase from directly). We're finding ways to enhance the diversity of our majority-owned tier 1 suppliers. We encourage all suppliers to hire diversely and to increase the diversity of their suppliers (our tier 2 suppliers). For suppliers that need extra support launching diversity programs, we offer free consultation services from our business diversity team. With this expanded approach, we revised the way we describe our work, from "supplier diversity" to "business diversity."
We've set quarterly reporting expectations with our largest tier 1 suppliers, rewarding compliance and penalizing lack thereof. We've also set the expectation that our suppliers share Allstate's commitment to mitigate climate risk by reporting their environmental data to CDP and through emissions reductions, as stated in our Supplier Code of Business Conduct and our supplier agreements.
OneTen and Allstate
OneTen aims to close the opportunity gap for Black talent in America by hiring, promoting and advancing 1 million Black individuals who do not have a four-year degree into family-sustaining careers over the next 10 years. OneTen takes a skills-first approach, focusing on competencies to ignite potential for generations to come.
Allstate was a founding member of OneTen, and our CEO become a coalition board member in 2021. In 2022, we exceeded our corporation's goal for hiring and promoting Black individuals without a four-year degree into family-sustaining jobs, with over 340 hires and over 150 promotions. We broadened the path for Black talent by launching an Apprenticeship Program, Internship Program and Entry Level Rotational Program. Allstate's collaboration with OneTen is a critical component of our IDE work.
* Allstate has not made, and will not make, any hiring or contracting decisions on the basis of race, ethnicity, gender, disability, age, or any other protected characteristic. Rather, as this document reflects, Allstate is committed to achieving its goals to increase diversity, and the representation of underrepresented groups, by recruiting diverse talent into its candidate pipeline.