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Inclusive diversity & equity

Overview

Inclusive Diversity & Equity (“IDE”) is a core value for Allstate and the foundation for Our Shared Purpose. Allstate’s IDE strategy is focused on the four pillars of Business Practices, Culture, People and Community to leverage diverse talent, perspectives and experiences and foster an inclusive and equitable workplace.

To accelerate the pace of change, Allstate launched a comprehensive IDE strategy. We conducted a top-to-bottom review of operating practices and made progress on many fronts, including pay equity by increasing the minimum wage. We also reduced the number of jobs requiring a college degree, which creates more opportunities.

Allstate strives to develop and retain a workforce that mirrors the diversity of the customers and communities we serve. Our collective differences, backgrounds, educations and cultures create an inclusive environment where diverse perspectives are encouraged and embraced.

Allstate’s performance in workforce diversity meets or exceeds external benchmarks. As of Dec. 31, 2021, women made up approximately 57% of our workforce, and 42% of our employees were racially or ethnically diverse. We’ve identified opportunities to increase diversity at top levels. For more information on our company demographics, please see our EEO-1.

In 2021, we met our IDE commitments with the following achievements:

  • Minimum compensation increased in 2022 to $17/hour and $20/hour, based on geographic differentials, the second increase in the last two years.
  • Continued to drive skills-based hiring without degree requirements on job postings. 54% of all new hires in 2021 did not have a 4-year bachelor’s degree.
  • Optional IDE course completion increased by 257% in 2021.
  • Maintained inclusive diversity index scores (Inspire Survey) in mid-80’s, on a scale of 0-100, from 2018-2021.
  • Established a dedicated impact portfolio for investments in businesses that can address IDE and climate risk while generating attractive risk-adjusted returns.
  • Increased our trading with minority, women, and veteran banking enterprises (MWVBEs) more than 10-fold compared with historical volume during 2021, representing 3.6% of total trading volume.
  • Since 2004 we have tripled our annual spend with diverse suppliers to $4.7 billion. In 2021, spent over $308 million with diverse suppliers compared to $235 million in 2020, with our top 10 diverse suppliers representing 32% of total diverse spend.
  • Issued $1.2 billion in bonds using minority/women/ veteran-owned firms in 2020.
  • Provided capital to benefit targeted communities, like low-income housing tax credits ($1.3 billion of book value as of 2021).

We’ve also taken other steps to advance equity:

  • The Allstate Foundation has formally added racial equity as a third focus area, in addition to youth empowerment and relationship abuse.
  • We observe Juneteenth as an annual company holiday to provide Allstaters the opportunity to reflect on its significance.
  • In 2020, Allstate’s CEO joined the CEO Action for Diversity & Inclusion, a coalition of almost 2,000 CEOs of the world’s leading businesses, to collectively take measurable action that advances diversity and inclusion in the workplace.
  • In 2021, Allstate’s CEO became a board member of the OneTen coalition. As a founding member of OneTen, Allstate will help the coalition combine the power of committed American companies to upskill, hire and promote 1 million Black Americans over 10 years into family-sustaining jobs with opportunities for advancement.

Accountability

Inclusive Diversity & Equity is a priority for Allstate. Allstate launched an IDE strategy that is supported by the Board of Directors as well as Allstate’s IDE Team, Environmental, Social, Governance (ESG) Sustainability Team, and ESG Steering Committee. Allstate’s goal is to become the differentiated IDE leader among major corporations by eliminating inequities in our business practices, our culture, and communities for all people.

Goals

In 2022, we are strengthening our commitment and accountability to drive greater results by implementing new enterprise goals:

People

  • Increase women and racial and ethnic minorities across officers, management, and employees.
  • Double participation in IDE training and conversations in 2022 benchmarked against 2019 rates (13,000 participants).
  • Improve employability for all team members.

Culture

  • Measure Allstate’s culture of inclusivity via Inspire survey results. Most recently, we expanded IDE-related survey questions to measure culture of employee belonging; equal opportunity regardless of background; senior leadership commitment to addressing inequity; and Allstate’s commitment to IDE as a company.
  • Keep the Allstate employee engagement score at the industry top quartile across demographic classifications.

Business Practices

  • Business Diversity: Spend $366 million with diverse suppliers in 2022 with a goal of increasing spend to at least $470 million by 2025.
  • Responsible Investments: Double trading volumes from 2020 levels (% of total volume) with minority, women and veteran banking enterprises (MWVBEs).
  • Responsible Investments: Target $180 million in new commitments with diverse sponsors and managers in 2022, nearly 3 times our historical annual average.

Community

  • The Allstate Foundation plans to contribute $7M to the advancement of racial equity, in addition to other funds for the signature cause of youth empowerment and relationship abuse.
  • Expand climate related investment capabilities and relationships, targeting incremental $1 billion to high impact investment by 2025.

Enterprise Diversity Leadership Council

106,150
courses on IDE completed by Allstate employees in 2021

The EDLC is comprised of leaders throughout the enterprise focused on advancing IDE at Allstate. The EDLC helps drive targeted results for IDE across the company by identifying and prioritizing actions, taking accountability for achieving target results, and ensuring clarity and understanding of the business relevance of IDE. The EDLC sits within the Environmental, Social, Governance framework at Allstate, with direct ties to the ESG Sustainability Team and ESG Steering Committee, and providing updates to the CEO. 

Allstate was listed on DiversityInc’s Top 50 Companies for Diversity in 2021 for its commitment to diversity, equity and innovative solutions, the 18th year on the list.

The EDLC helps increase IDE across the company by: 

  • Identifying and prioritizing actions – The EDLC was a catalyst for the creation of IDE commitments to increase visible leadership commitment and accountability. 
  • Taking accountability for achieving target results – The EDLC ensures our IDE commitments are integrated into business objectives. 
  • Ensuring clarity and understanding of the business relevance of IDE – The EDLC promotes best practices, including integrating communication of commitments with other business priorities; assigning officer sponsors to individual commitments; incorporating commitments into department goals; and ensuring ERGs are integrated and applied in the context of business priorities.

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 one of our core values. 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 actively 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 Resource Groups (ERGs) 

ERGs provide an inclusive and open forum where employees with a shared interest can connect, develop and collaborate. In early 2022, two of the 11 ERGs that Allstate supports were combined to bring the ERG total to 10, each with unique value propositions and goals. ERGs are aligned to IDE goals at Allstate, providing opportunities to support recruitment, advancement, development and retention of all talent.

ERG members partner and collaborate through professional development workshops, recruiting events, volunteer projects and mentoring. Officers from across the enterprise support the ERGs with their time, networks and resources, and advance IDE at Allstate. ERGs positively influence our efforts related to retention, promotion and workplace culture. 

In 2021, Allstate allocated 48% of our total IDE budget to ERGs to demonstrate our commitment to financially supporting the positive impacts of ERGs on our business and member employees.

In 2021, more than 15,000 employees participated in an ERG, with more than half of those employees participating in two or more ERGs. The shift to a virtual workplace increased global partnerships and involvement in Allstate ERGs, with an 18% increase in ERG membership since 2019.

Current ERGs at Allstate: 

  • Allstate Asian American Network (3AN)
  • African American Working Network (AAWN) 
  • Abilities Beyond Limitations and Expectations (ABLE) 
  • Allstate PRIDE 
  • Allstate Veterans Engagement Team and Supporters (AVETS)  
  • Allstate Women’s “I” Network (AWIN) 
  • Families at Allstate Matter
  • Intrapreneurs@Allstate (I@A) 
  • Professional Latino Allstate Network (PLAN) 
  • Young Professionals Organization (YPO) 

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 2021, Allstate conducted a third-party comprehensive assessment to guide our new IDE strategy. Our programs, policies and practices were evaluated to ensure we are building, maintaining and supporting an inclusive and equitable environment, where everyone can achieve their full potential.

There were three primary conclusions.

  • Transparency: We want clarity and transparency around what IDE means at Allstate, which means talking more openly with leaders and managers, providing data proactively and increasing engagement.
  • Resource Design and Allocation: We’re finding ways to reallocate and reimagine how resources are designed to address IDE priorities and create the most benefit at Allstate.
  • Trust: We want to further prioritize the trust of employees so they are confident that we are constantly moving toward our IDE goals.

Talent planning*  

Allstate is developing best practices to create and sustain a diverse pipeline of talent. To lead these initiatives, Allstate hired its first chief Inclusive Diversity & Equity officer in 2021.

Inclusive hiring 

Our Talent Acquisition team regularly monitors workforce demographics to determine the greatest opportunities to bring in more diverse talent. The team’s recruiting and outreach target, identify and recruit qualified diverse candidates. Allstate launched its first Cyber Security Apprenticeship Program in 2020 with students pursuing an associate’s degree from community colleges. We continue to grow and scale the program to more areas of Allstate. We currently have apprentices in Human Resources and Allstate Technology. In addition, a Returnship program was launched in May 2021 that focuses on midlevel software engineers returning to the workforce after a gap in employment due to caregiving responsibilities. We will start our second cohort in June 2022 and plan to hire additional product engineers.

Allstate builds relationships with external organizations to enhance the diversity of our hiring pipeline, including:

  • AnitaB.org 
  • ALPFA (Association of Latino Professionals for America) 
  • BDPA (Black Data Processing Associates) 
  • Blacks United in Leading Technology International (BUiLT) 
  • CASY (Corporate America Supports You) 
  • Disability:IN 
  • Hirepurpose 
  • Hispanic Alliance for Career Enhancement (HACE) 
  • International Association of Black Actuaries (IABA) 
  • Microsoft Software and Systems Academy (MSSA) 
  • Military Spouse Employment Partnership (MSEP) 
  • National Association of Black Accountants (NABA) 
  • National Association of Hispanic Real Estate Professionals (NAHREP) 
  • National Black MBA Association (NBMBAA) 
  • National Sales Network (NSN) 
  • National Society of Black Engineers (NSBE) 
  • Path Forward 
  • RecruitMilitary 
  • SHPE (Society of Hispanic Professional Engineers) 

We work with programs like Junior Achievement and One Million Degrees that encourage youth empowerment through education initiatives, including career programming and mentorship. We also partner with our Employee Resource Groups to encourage a more diverse referral pipeline.

The Talent Acquisition team works with external parties for events held by the National Sales Network and National Black MBA Association. Allstate also supports historically Black colleges and universities and Hispanic- and Minority-serving institutions to attract talent to our employment and entrepreneur career opportunities. We are expanding partnerships with the Divine 9 Fraternities and Sororities.

The future of work

The future of work is flexible. We empowered employees to choose how and where they work – with most opting for hybrid or remote – and provided them with the equipment they need. These practices promote employees’ well-being and feelings of inclusion.

Performance and pay practices review 

We complete an annual pay equity analysis that compares the pay of men and women, and non-minorities and minorities within similar jobs. If we identify any statistically significant gaps in pay, we make adjustments.

In 2021, the annual pay equity analysis was completed by a third party; results compared favorably to external benchmarks, and any identified pay gaps were remediated.

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 and provides tools to help employees create a more inclusive environment.

In 2021, employees completed more than106,000 courses on IDE. The number of courses completed in 2021 was more than triple the courses completed in 2020 (30,976 courses) and sixteen times the total of IDE courses completed in 2019 (6,445 courses).

We continued to offer the Disrupting the Unconscious Bias of Cultural Fit course, designed 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 13,523 employees participated in 2021. To address inclusive belonging at Allstate, the course “From Microinequities to Inclusion: Understanding and Addressing Subtle Expressions of Bias” educates on microinequities and allyship, and was completed by 34,031 employees in 2021.

We regularly host diversity and equity programs on critical topics such as gender identity, religion in the workplace and generational differences. Many of these topics—particularly those aimed at deepening understanding about systemic racism in the world and the concepts of oppression and equity—are embedded into management development training and programs throughout the enterprise. We launched an Anti-Racism Resource Center for employees and created an Inclusive Diversity & Equity toolkit to help increase knowledge and awareness and build dialogue.

Supplier inclusion

Allstate strives to improve the communities where we work, live and connect through responsible supply chain practices. In 2021 we spent over $366 million with minority-, woman-, veteran-, LGBTQ- and disabled-owned businesses, compared to $235 million in 2020. A recent, analysis indicated that $1 spent with Allstate’s diverse suppliers drives $1.97 in total economic production. This means the economic impact of Allstate’s purchases with diverse-owned suppliers in 2021 is estimated at over $680 million, which supports jobs and wages/benefits within that supplier chain and the communities where those businesses operate.

In 2020, Allstate made headlines by working exclusively with a group of minority-, women- and veteran-owned businesses for a $1.2 billion corporate bond offering. This is the first time a corporate bond offering of this size has been managed exclusively by diverse enterprises. We consider it an important milestone for improving equity in our financial markets.

We are working hard to further increase diverse supplier spending. We completed a Benchmarking and Category Analysis, which provides guidance on our greatest opportunities to grow diverse spending. 

To meet our goals, we will develop scorecards for business leaders to measure performance and navigate gaps. We will identify opportunities for incremental spending growth with current diverse suppliers and onboard ready-to-engage new suppliers, especially in categories where enterprise investments are growing. We also strive to expand the number of non-diverse prime suppliers reporting their respective Tier 2 diverse subcontractor spending to Allstate through this initiative.

To be eligible for our Supplier Diversity Program, a company 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)
  • USPAACC (U.S. Pan Asian American Chamber of Commerce)
  • Women’s Business Enterprise National Council (WBENC)
  • National Veteran Business Development Council (NVBDC)
  • Disability:IN (formerly U.S. Business Leadership Network)
  • Certification from local, state or federal government agencies

We measure spending in the first five categories listed below. We also measure our inclusive spending in all 13 categories identified by the Small Business Administration as diverse and of special interest in meeting statutory obligations. These include:

  • 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/woman-owned business enterprises 
  • Minority-owned business enterprises  
  • Small Business Administration 8(a) program 
  • Woman-owned business enterprises 
  • Small-business enterprises 
  • Small disadvantaged business enterprises 
  • Veteran-owned business enterprises 

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) 

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 participating companies become better positioned to compete for contracts.

Since the Exchange started, nearly 1,000 businesses have attended. In 2021, the virtual event brought together over 800 attendees from many industries. It included Office Hours and Virtual Capabilities Briefings to connect diverse suppliers with Allstate decision-makers for potential sourcing opportunities. In total, Allstate’s 2021 Supply Chain Partners included 2,000 diverse suppliers.

Allstate Mentoring Program

The Allstate Mentoring Program helps diverse business owners strengthen and grow their companies by helping them work on their business – not just in it. Participants are matched with Allstate executives whose expertise is aligned with the developmental need of the business owner. This historically 12-month program involves live sessions and webinars focused on leadership and employee development, financial management, sales and marketing, and technology enhancement.

We are reimagining and relaunching the Allstate Mentoring Program to include startup venture entrepreneurs in addition to established business owners to jump-start growth, capacity, equity and economic prosperity. We will shorten the program, leverage virtual meeting technology to increase the number of cohort participants and accessibility, as well as enable virtual mentorship engagement.

*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.

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