People

organizational
culture

Allstate’s company culture is one of the foundations for our success. As we accelerate Transformative Growth, we are also focusing on how we recruit, retain, develop and engage employees. In 2019, we made organizational culture one of the risk categories overseen by the Allstate Board of Directors.

Accountability

We define culture as a self-sustaining system of shared values, principles and priorities that shapes beliefs, drives behavior and influences decision-making within an organization. Times of change, like the execution of Transformative Growth, can impact a company’s culture and workforce. Our Human Resources team, led by the chief human resources officer, ensures a strong commitment to culture.

Talent review and succession planning

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

  April July October 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

Policies and practices

Our Shared Purpose

As Allstaters, everything we do is grounded in a shared purpose of empowering customers with protection to help them achieve their hopes and dreams. We are purpose-driven individuals who leverage our unique identities with equitable opportunity and rewards. Together, we bring Our Shared Purpose to life through an unwavering commitment to our shared Values, Behaviors and Operating Standards.

Our Shared Purpose is a guide to what it means to be an Allstater. It helps create a transparent, innovative and caring environment by empowering Allstaters to help shape and transform our future, enabling our collective success for customers, communities, society and the world.

Four behaviors define our culture and drive business results:

  • Collaborate early and often to develop and implement comprehensive solutions and share learnings.
  • Challenge Ideas to leverage collective expertise, evaluate multiple alternatives and create the best path forward.
  • Provide Clarity for expected outcomes, decision authority and accountability.
  • Provide Feedback that is candid, actionable, independent of hierarchy and safe.

Programs and initiatives

Planning and recruitment

A successful cultural strategy begins before a new Allstater joins our team. We use data and technology to know when, where and who we need to hire — whether the candidate is internal or external. Then, we use our learning platforms to onboard them, which is more important now, with many of our new people beginning remotely.

Strategic Workforce Planning

Our Strategic Workforce Planning team within Human Resources constantly evaluates the skills, number and location of workers we need to succeed. We plan for workers’ shifting roles to align our talent strategy with our business strategy.

The 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.

As part of Allstate’s Enterprise Resource Strategy (ERS), we assess employees’ locations and expected labor market trends across our talent centers. Allstate then forecasts where employees are needed and adapts hiring/internal placement to meet those needs. In 2019, Strategic Workforce Planning spent several months helping redefine ERS. We used labor market data to identify which Allstate talent centers were best suited to hire for certain skills, and developed a common framework across AORs to maximize career opportunities.

Enterprise Talent Market and Talent Share

With 41,860 full-time and 300 part-time global employees at Allstate, there is no better place to begin the hiring process than within our organization. Our Enterprise Talent Market philosophy and Talent Share programs support employees’ internal advancement. When a position opens in any department across the company, Allstate employees can apply.

Metric 2017 2018 2019 2020
% internal placement rate 43% 43% 43% 42%

Onboarding

As we transitioned a cohort of Esurance employees into Allstate, Enterprise Learning and Development created and launched Allstate & You, a refreshed and more robust onboarding program. We expanded it to the full organization in November 2020. Within the Allstate & You umbrella, there are now options for new employee onboarding, depending on whether the employee is entirely new to the Allstate family of companies, or is transitioning from an Allstate affiliate.

Allstate & You creates consistent orientation for all new employees, helps them connect to the company’s culture and business strategy. The program also helps them understand essential processes over an eight-month period and enables hiring managers to focus on role, team and AOR onboarding journey so employees can be successful.

Work flexibility and remote working

Flexibility makes Allstate a more attractive employer. Many Allstate employees already had flexible work options, but the COVID-19 pandemic in 2020 demonstrated just how flexible work can be. In just one weekend, we transitioned 95% of our workforce to remote working. To support them in working remotely for an extended period, we invested $14 million in a program that provided employees with equipment to effectively work from home.

After the pandemic, Allstate plans to maintain a flexible, hybrid work model to continue to better meet employees’ needs. We anticipate our physical office capacity to reduce about 50%.

Career management

Each employee receives an annual performance review, with additional performance conversations throughout the year. During these formal and informal check-ins, the employee and manager discuss goals, long-term career development and share two-way feedback. Weekly check-ins are designed to guide employees on a more day-to-day basis and discuss how the employee is working to advance their performance goals.

In 2020, Enterprise Learning and Development began a multi-year journey to humanize how Allstate looks at performance, development and growth. They started collecting data through external research and internal focus groups to inform how Allstate could shift to a more human-centered approach around performance management, increase accessibility to career development tools and simplify the process for employees.

Performance management conversations

In 2020, we communicated updated resources for employees and people leaders to help facilitate ongoing conversations about performance management and development. We used quarterly check-in resources, leader sessions and new tools to promote a different way to think about performance for employees. In 2021, leaders across the company will receive additional tools on coaching, performance conversations and practical development resources to help employees grow.

Metric 2017 2018 2019 2020
Inspire Survey Results: “At Allstate, I have the resources that I need to develop my professional skills and actively manage my career” 80% 80% 80% 85%
Inspire survey results: “My immediate manager actively provides encouragement and time for me to participate in development opportunities.” 79% 81% 87% 89%

Enterprise Learning and Development

Allstate’s employability strategy

Several years ago, Allstate leaders recognized the need to invest in upskilling our people for the future of work – earmarking $40 million toward the employability of the workforce. Employability means employees have relevant skills to grow their careers at Allstate or elsewhere.

To prioritize skill development, Enterprise Learning and Development began to provide learning solutions for continuous capability building, while supporting business goals. From 2018-2020, the team established the infrastructure to make learning resources accessible to employees and raised awareness about the need for a culture of continuous learning. This included investing in external learning platforms and revamping in-house development programs, including leadership and onboarding programs to support employees along their career journeys.

Enterprise Learning and Development also works with Strategic Workforce Planning on initiatives to upskill employees and create opportunities within the organization. This helps employees advance beyond their current skills to be ready for future opportunities. These engagements helped areas of the business identify critical talent gaps and geo-locational opportunities for recruiting, retention and development of employees for the needs of tomorrow.

Continued learning

Allstate now has three learning platforms: LinkedIn Learning (business and creative learning content), edX (university-level learning content) and TalentConnection (Allstate-generated content). This gives employees access to dedicated solutions to build technical, business and creative skills when they need them – on-the-job and off-the-job. The platforms also enable Enterprise Learning and Development and learning teams across the organization to curate a curriculum required for their specific business needs.

We offer an online portal with tools and resources to help employees set career goals. We have modules that help employees identify their strengths and opportunities, grow their networks, develop their résumés, and initiate career-related conversations with managers and peers.

In 2020, we piloted Degreed, which aggregates learning content, making searching for skills-building opportunities easier for employees. Degreed provides insights into skill development within departments and organizations, which allows leaders to understand what skills their employees are building and deploy content strategically where there are gaps. We are deploying Degreed in phases in 2021.

Because of the transition to remote work, we scaled back the launch of some learning campaigns and responded to employees’ needs with “just-in-time” content to support working and leading from a distance.

Metric 2017 2018 2019 2020
# of completed courses 279,843 367,837 451,491 707,985
# of unique learners 41,934 44,268 37,241 39,050
# of hours of learning 348,370 465,749 389,918 503,857

Tuition reimbursement

Allstate offers employees tuition reimbursement for a college degree, an advanced degree or an additional degree. We offer up to $5,250 per employee per year.

Metric 2017 2018 2019 2020
# of participating employees 1,064 937 1,176 702
$ tuition reimbursement paid $3.7M $3.6M $3.7M $3.3M

Department-specific development

While companywide training is important to creating a unified culture and promoting general expertise, we also promote department-specific expertise. A few examples:

Allstate’s Claims department piloted a virtual reality simulation for the property division, simulating three loss types – fire, water and wind/hail. Fully immersive and desktop versions were available. Pilot learners demonstrate improved learning proficiency after participation in VR activities, compared to those not in the pilot.

New skills are a crucial part of Allstate’s commitment to Transformative Growth. Allstate Technology, Services & Ventures (ATSV) created learning advisers across the organization to deliver specific learning plans for key skill development. ATSV recognized the need for leaders to have a better understanding of artificial intelligence and machine learning. ATSV distributed targeted content to over 790 leaders globally in 2020.

Live and on-demand seminars

In addition to formal training, Allstate provides employees with a variety of in-house learning and development – live and streaming – throughout the year. The Good Work Series celebrates the Good Work pillar of our Employee Value Proposition and focuses on nurturing an inspiring workplace culture.

Leaders as Teachers provides internal perspectives from Allstate executives on leadership and other topics pertinent to our business strategy.

Thought Leader Forum introduces an external point of view on business and leadership to accelerate development.

Quarterly Skill Builders series helps provide leaders with tools and resources to continuously develop their teams on crucial skills for the future of work. In 2020, over 2,387 unique employees attended at least one of the four Quarterly Skill Builders featuring external experts facilitating topics including data visualization, storytelling and talent development, with a total of 4,025 attendees overall.

Global Learning Week promotes a culture of learning and empowers employees to learn new skills with perspectives from industry experts, Allstate leaders and their peers. In 2020, we had 24,000 registrants (7,000 unique employees) attend Allstate’s Global Learning Week, more than double the amount of participation than the prior year, with over 2,000 development commitments made to grow one new skill by the end of the year.

Targeted leadership development

We offer additional support to employees identified as being part of top talent to ensure successful transitions as their responsibilities increase, such as when they are newly promoted into a management role.

In 2020, Allstate began to redesign management and leadership training to help leaders with democratized, modular, self-directed training focused on career mobility, inclusivity and opportunity for growth. To date, there have been more than 5,000 (non-unique) leader participants across mentoring, Talent Share, rotational and new leadership programming.

The Power of Mentoring for Inclusive Diversity (MInD)

Allstate redesigned the Power of Five women mentoring program to focus on the employee lifecycle and expand to include minorities of all genders, renaming it Power of Mentoring for Inclusive Diversity (MInD). It focuses on sponsorship, increasing experience-based job shadows and networking opportunities for attendees based on participant feedback. This includes a capstone job shadow experience for select participants. There were 74 participants in the 2020 cohort, and the program received an overwhelmingly positive response.

Participants take part in 1:1s, mentoring circles and a program conference. We integrated the program with existing development conversations and opportunities such as Skill Builders, Employee Resource Groups and Global Learning Week. With the rebranding in 2019, we added:

  • Cohorts for minorities and the LGBTQIA+ community
  • Updated guides for mentors, mentees and leaders of mentees
  • Resource library of planning activities, monthly toolkits and focus on skills needed for future success

Essentials of Leadership and Management

Essentials of Leadership and Management deployed in the third quarter of 2020. It allows first-time people leaders and those looking to assume leadership positions to develop key leadership and management capabilities. With more than 700 participants to date, employees focus on 13 leadership and management capabilities, share best practices across the enterprise and put case studies into practice.

Talent pipeline programs

Accelerated Leadership Experience – The Leadership Development Program (LDP) and Executive Development Program (EDP) are being merged into a new two-year leadership development program that infuses Allstate with a strong pipeline of diverse, innovative and talented leaders. Beginning in summer 2021, we’ll select internal and external candidates with the talent needs of the company who will have a streamlined rotational experience to accelerate their growth. They will collaborate and challenge ideas, contribute to a culture of Inclusive Diversity & Equity, and will be dedicated to collective success. Candidates must also demonstrate a strong commitment to Our Shared Purpose. As part of the program, leaders will be assigned a mentor and career coach, and a foundational curriculum will guide their learning and development.

Employee engagement

Our annual Inspire survey allows Allstate to gather feedback about employee engagement and its drivers. In 2020, 84% of all eligible employees responded to the survey, an increase of 6% from the previous year. The survey results showed that 84% of employees have a favorable view toward engagement at Allstate. Our leadership teams get feedback from the survey regarding manager effectiveness, as well as annual updates about the health of our culture to support continuous improvement.

We examine survey results by race/ethnicity, gender and tenure to identify opportunities to support 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
Metric 2017 2018 2019 2020
% favorable 83% 84% 84% 84%
% participation 82% 65% 78% 84%

Employee Life Cycle Survey Program

Allstate’s Employee Life Cycle Surveys help us understand the attitudes, beliefs and behaviors of employees at different career stages. This program helps us determine which initiatives and efforts are most important to support employees’ satisfaction and well-being. It includes 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 they’ll do next.

People Analytics

To sustain an efficient and skilled workforce, Allstate attracts and retains high-quality employees. Improving their retention and engagement improves our 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.

People Analytics (PA) 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. PA launched two pilot studies in Allstate Brand Distribution and Allstate Technology, Services & Ventures. In these studies, PA 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.

PA 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 employees while reducing the costs associated with attrition. In 2020, Allstate’s total employee turnover was 23.5%, and voluntary turnover was 11.2%.

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