Allstate's company culture is one of the foundations of our success. We believe that a purpose driven company must be powered by purpose driven people. As we accelerate Transformative Growth, we are focusing on how we recruit, retain, develop and engage employees, with organizational culture included as a key risk category overseen by the Allstate Board of Directors.
We define culture as a self-sustaining system of shared values, principles and priorities that shape beliefs, drive behaviors and influence decision-making within an organization. Times of change, like the execution of our Transformative Growth strategy, 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 through a dedicated team focused on Allstate’s Culture and Employee Experience, and by embedding new ways of working to empower employee flexibility and choice within both professional and personal development.
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.
|Topic||CEO Succession Planning||Talent Development Programs||Senior Leadership Succession Planning & IDE||CEO and Senior Leadership Succession Scenario Planning|
|Focus||Internal succession alternatives across multiple time periods and operating scenarios. Senior leadership development and CEO emergency succession plan||Organizational health and pay fairness analyses – how the organization recruits, develops and retains people, including its inclusive diversity commitments||Senior leadership succession planning and Inclusion, Diversity and Equity (IDE) progress update||CEO and senior leadership succession "what if” scenario planning in advance of unexpected succession issues|
Policies and practices
Our Shared Purpose
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.
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.
Additionally, Allstate’s core capabilities were designed to help us transform as a company and as individuals. The capabilities – Future Oriented, Change Ready, Customer Centric, Digital Mindset, Results Driven, and People Focused – each include relevant in-demand skills, trending external skills and skills critical for enterprise success.
Altogether, our behaviors, core capabilities and Our Shared Purpose help create a transparent, innovative and caring environment by empowering employees to shape and transform our future, enabling our collective success for customers, communities, society and the world.
To learn more about our values and operating standards, see the Our Shared Purpose section of the report.
Programs and initiatives
Planning and recruitment
A successful culture strategy begins before an Allstater joins our team. We use data and technology to know when, where and who we need to hire, including whether the candidate is internal or external. With the rise of remote work, our online learning platforms for hiring and onboarding have been critical to our success in planning and recruitment.
Strategic Workforce Planning
The Strategic Workforce Planning team within Human Resources constantly evaluates the skills, number and location of employees we need to succeed. In line with our business strategy, our talent strategy plans for employee growth and development.
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 of being impacted by business disruption 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 expected labor market trends to forecast where employees are needed and adapt hiring/internal placement to meet those needs. Our Strategic Workforce Planning team has redefined the ERS – we use labor market data to identify where Allstate is best suited to hire for certain skills and develop a common framework across areas of responsibility (AOR) to maximize career opportunities.
Enterprise Talent Market and Talent Share
With 54,300 full-time and 400 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. Allstate employees are empowered to apply to any open positions in departments across the company. Since 2017, we have supported over 17,000 Allstaters with internal placements.
|Internal placement rate||43%||43%||43%||42%||31%|
Allstate & You new employee onboarding and orientation
A robust onboarding program, Allstate & You, provides tailored options for new employees depending on whether they are entirely new to the Allstate family of companies or transitioning from an Allstate affiliate.
Allstate & You creates consistent orientation for all new employees and helps them connect to the company’s culture and business strategy. It helps them understand essential processes over an eight-month period and enables hiring managers to focus on role, team and AOR onboarding to ensure employees’ success.
We’ve made improvements to Allstate & You since its launch in 2019. These enhancements have doubled employee engagement, from less than 40% in 2019 to 80% in 2021. Some of the enhancements:
- Rewarding new employees with Allstate swag as they complete sections of the program.
- Designing a checklist that helps employees understand the priorities of the program.
- Creating a communication channel for new employees to openly inquire and engage with other new employees.
- Expanding e-learning courses, video tutorials and simulations to address specific navigation inquiries.
- Piloting office hours for AskHR and ATSV so employees can ask questions on demand. This is being expanded in May 2022.
Work flexibility and remote working
Flexibility is one thing that makes Allstate an attractive employer. Many Allstate employees already had flexible work options, but the COVID-19 pandemic demonstrated just how flexible work can be. At the start of the pandemic, we transitioned 95% of our workforce to remote working in just one weekend. In 2020, to support employees through remote work, we invested $12 million in a program that provided new employees with equipment to effectively work from home. As of 2021, we have currently invested an additional $9 million in the program to ensure our employees remain supported.
Globally, in 2021, approximately 75% of our employees were home-based, enabling us to attract and retain diverse and capable talent across geographical boundaries, as well as positively impact employee wellbeing and embrace new ways of collaborating—no matter where an employee sits. 24% of employees are hybrid, splitting their time between an Allstate office and their home-office. Finally, 1% of employees are office-based and fully rely on our Allstate buildings to serve our customers and drive business results.
Allstate plans to maintain a flexible, hybrid work model to continue to better meet employees’ needs and choices. We anticipate our real estate footprint will reduce by about 50% in 2022 when compared to a 2020 baseline.
Culture and employee experience
The culture and employee experience team was created in 2021 to formalize our approach to culture change and provide a research-based view of improving employee experience.
In 2021 the team conducted internal research and partnered with an external firm to explore the barriers and accelerators of our cultural change. This resulted in a long-term roadmap that encompasses all aspects of the employees career, from attraction through exit.
Our efforts in the past year were primarily focused on leveraging opportunities to incorporate our four behaviors (outlined above) into our current work. Some of this work includes Global Learning Month, enabling managers and employees to accurately assess performance during annual performance reviews, and creating a Manager Care Guide to support day-to-day challenges in retention and the changing talent marketplace. In 2022, these opportunities will be fully embedded into our talent practices as we create and deliver frameworks, tools, resources and programming across all four behaviors.
The four behaviors that define our culture and drive business results are Clarity, Feedback, Challenge Ideas and Collaboration. Within Clarity, the Learning and Performance teams have delivered live sessions to connect goal setting and feedback into more continuous performance approaches. Pilot teams helped us test and revise a decision clarity framework from 2021 and using their feedback, we reimagined it into the DRIVE decision clarity framework. The new framework enables faster and clearer decision making, and is being supported with eight live enablement learning sessions, on-demand e-learning, videos, reference documents and tools to support transparent decision making. In 2022, a community of practice will enable employees to learn from each other as we make DRIVE the decision-making approach at Allstate.
Similarly, for each of the Behaviors we will create tools and resources that address the unique challenges and strengths of Allstaters. To address Feedback, we will have to adopt a universal framework that we build into our performance approaches, education and development. We will also address Challenge Ideas and Collaboration based on the input of employees for the support needed. This change is being measured through a monthly survey with employees in a Culture Transformation Index. We also assess progress through additional surveys, event feedback, focus groups, and standard HR dashboard measures.
In 2022 we took a deep research approach to our employee experience, starting with the employee value proposition. We have conducted research with internal and prospective employees to understand what elements are most important to their employee experience, what they are satisfied with and what they desire. This research will guide Allstate to what we want to be known for as an employer, and will articulate that to current and potential employees, with supporting investments.
Each employee receives an annual performance review, with more 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.
Our Enterprise Learning and Development team is humanizing how Allstate looks at performance, development and growth. They’ve done extensive internal and external research to help us understand how our current HR practices helped or hindered Allstaters’ progress. The research showed gaps in performance feedback, particularly with our cross-functional and cross-geographical teams. In 2021, Enterprise Learning and Development also conducted a test and learn pilot with Human Resources to test out two enhanced performance tools from SAP SuccessFactors.
Performance management conversations
We regularly review and communicate resources for employees and people leaders to help facilitate ongoing conversations about performance management and development.
In 2021, Enterprise Learning and Development partnered with the Culture and Employee Experience team to launch a people leader and individual contributor Performance Enablement Session. This live learning event helped new and tenured employees navigate performance reviews. The session discussed assessments, ratings, system navigation, and critical dates, and reemphasized our behaviors of feedback, collaboration, challenging ideas and decision clarity.
On March 1, 2022, Enterprise Learning and Development launched two enhanced performance tools from SAP SuccessFactors. They make the performance management process easier by helping with feedback requests, tracking progress on goals and creating discussion notes for check-in conversations. To encourage collaboration and continuous performance conversations, we gave leaders additional tools on coaching, discussions and development resources to help employees grow.
In 2022, the Performance Enablement sessions will continue to support employees with critical components of the annual performance year, beginning with an enablement session around goal setting in Q1.
|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%||83%|
|Inspire survey results: “My immediate manager actively provides encouragement and time for me to participate in development opportunities.”||71%||81%||87%||89%||89%|
Enterprise learning and development
Allstate’s employability strategy
Key aspects of our employability strategy:
- Curate, market, assess and update Allstate's learning resources for the workforce to meet the demands of the industry.
- Enable business units to understand and use the competency framework that allows insight into their skill makeup and gaps.
- Refine the continuous performance management process across Allstate that adheres to the agile business model and the goals of the Transformative Growth strategy.
- Provide easier access for employees to seek career opportunities to apply or acquire knowledge.
In 2018, Allstate leaders recognized the need to invest in upskilling our people for the future of work. Allstate earmarked $40 million to ensure employees have the relevant skills to grow their careers at Allstate or elsewhere, which triggered the expansion of Enterprise Learning and Development.
To prioritize skill development, Enterprise Learning and Development began to provide learning solutions for continuous capability building, while supporting business goals. From 2018-2021, the team established the infrastructure to make learning resources accessible to employees and raised awareness about the need for continuous learning. We invested in external learning platforms and revamped in-house development programs, including leadership and onboarding.
One focus in 2021 was purposeful development. We turned a keen eye to leadership development and our core capabilities, while enabling employees to consume the content that was relevant to their role and career plans.
Enterprise Learning and Development also works with Strategic Workforce Planning to upskill employees and create opportunities within the company. This helps employees be ready for future opportunities. It also helps us identify talent gaps and geolocational opportunities for recruiting, retention and development of employees for the needs of tomorrow.
In 2021, Enterprise Learning and Development launched Degreed, a platform that provides Allstate learners with a “front door to learning” to support Transformative Growth. Degreed consolidates learning from Allstate’s TalentConnection and each of our third-party content vendors, including LinkedIn Learning and edX, as well as our three new learning resources, Harvard Business Review, GetAbstract and O’Reilly Books, into one easy-to-use platform, simplifying skill-building and providing insights on further development opportunities.
Based on feedback from employees and Allstate leadership, the launch of Degreed and the rollout of core capabilities should help employees develop professional skills and better understand what skills are needed for the future. Enterprise Learning and Development will continue to seek feedback to support employees.
|# of completed courses||279,843||367,837||451,491||707,985||1,097,753|
|# of unique learners||41,934||44,268||37,241||39,050||47,585|
|# of hours of learning||348,370||465,749||389,918||503,857||1,474,597|
*2021 numbers represent Allstate Global, while previous numbers are U.S. only.
The micro-credential program was refreshed at the start of 2021. Seven new Degreed pathways were delivered to help employees learn, apply and market the skills of today: Innovation, Change Agility, Customer Focus, Agile Work, Virtual Work, Data Analysis and Coding. Allstaters completed more than 490 micro-credentials, and hundreds are in progress.
|Customer Focus Micro-Credential||Data Analysis Micro-Credential|
|Pathway Followers||Over 50% Complete||100% Complete||Pathway Followers||Over 50% Complete||100% Complete|
|Virtual Work Micro-Credential||Innovation Micro-Credential|
|Pathway Followers||Over 50% Complete||100% Complete||Pathway Followers||Over 50% Complete||100% Complete|
Allstate offers tuition reimbursement for a college degree, an advanced degree or an additional degree for all employees. As the COVID-19 pandemic brought social and financial inequities to the forefront, we recognized that many employees and potential candidates may not be able to afford to pay tuition costs upfront. To develop our talent, address financial inequity and become a more attractive employer, we launched our tuition assistance pilot program, Free for Me.
Free for Me pays for tuition in advance to ensure that the employee has zero out-of-pocket expenses. We recognize that having to pay for tuition in advance creates a barrier to participating in employer-funded tuition assistance programs, so we decided to implement a program that drives equity across the system. By paying in advance, Free to Me makes tuition assistance more accessible to all employees, including non-exempt employees, regardless of their pay.
The program is being piloted with two of Allstate’s largest call center departments, Service Delivery and Direct Sales, and if proven successful will be implemented for all non-exempt employees in late 2022.
As part of the Tuition Assistance Program, 112 Allstaters graduated and earned a degree using financial assistance Leadership and Management Journeys from Allstate. Just under $3 million in financial assistance was provided to Allstaters to pursue their degrees for 2021. There were also 600 academic advising sessions to help participants select the right school and degree to meet their career objectives and financial needs.
Enterprise Learning and Development will work with Bright Horizons EdAssist Solutions and dozens of universities to help Allstaters receive college credit for the learning and development hours spent on the job. This will make it easier and more affordable for Allstaters to get a college degree.
|# of participating employees||1,064||937||1,176||702||734|
|$ tuition reimbursement paid||$3.7M||$3.6M||$3.7M||$3.3M||$2.9M|
While companywide training is important to create a unified culture and promote general expertise, we also promote department-specific expertise. A few examples:
In 2021, Claims Learning and Development (CLD) built on the success of their virtual reality simulation pilot and launched two courses for auto estimating and two for property estimating. The fully immersive simulation models three loss types – fire, water and wind/hail. Pilot learners demonstrated improved proficiency after participation in VR activities, compared to those not in the pilot. We’re considering expanding the program in 2022.
Allstate Technology, Services & Ventures (ATSV) created learning advisers to deliver plans for key skill development. ATSV recognized the need for leaders to have a better understanding of artificial intelligence and machine learning. The team deployed learning to more than 8,000 ATSV global employees in 2021 through two Technology Quotient Learning Campaigns that helped prepare participants for the digital transformation.
With many new instructors onboarded in 2021, the Allstate Direct Distribution team created the Instructor Certification Program to efficiently develop instructors. They focused on licensing performance and process improvements during 2021, which required all new Direct Sales Agents to be licensed to sell insurance. Instructors certified through this new program supported and coached new hires through the pre-licensing course and licensing phase. We plan to develop this program further in 2022.
Live and on-demand seminars
In addition to formal training, Allstate provides 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 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 helps provide leaders with tools and resources to continuously develop their teams on crucial skills for the future. In 2021, Enterprise Learning and Development partnered with the Culture and Employee Experience team to create learning events central to our shared behaviors: feedback, collaboration, challenging ideas and clarity. We had over 2,474 unique employees attend at least one of the four Quarterly Skill Builders, and a total of 3,225 attendees overall. The series features external experts facilitating topics including data visualization, storytelling and talent development.
Enterprise Learning and Development hosted a Global Learning Month to promote a culture of learning and empower employees to learn new skills with perspectives from industry experts, Allstate leaders and their peers. In 2021, over 7,000 employees participated in Allstate’s Global Learning Month.
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.
Allstate is redesigning its management and leadership training to help leaders with democratized, modular, self-directed training focused on career mobility, inclusivity and opportunity for growth.
Talent pipeline programs
Accelerated Leadership Experience
Allstate launched a new two-year leadership development program in 2021. The Accelerated Leadership Experience gives Allstate a strong pipeline of diverse, innovative and talented leaders who demonstrate a strong commitment to Our Shared Purpose.
The inaugural cohort, with 8 internal and 10 external candidates, will have a streamlined rotational experience to accelerate their growth. Participants are assigned an executive mentor and senior leader career coach. A foundational curriculum aligned to Allstate's core capabilities will guide their learning and development through the program as they collaborate and challenge ideas, contribute to a culture of Inclusive Diversity & Equity, and are dedicated to collective success.
Essentials of Leadership and Management
Since the debut of Allstate’s Essentials of Leadership and Management in 2020, over 3,443 employees accessed the curriculum in 2021. With a continued focus on building the Leadership and Management Journeys program, we created and launched My Leadership Evolution and Leader of the Future, two additional programs crafted with mid- to senior-level leaders in mind. 100% of surveyed participants said they were likely to recommend My Leadership Evolution to others, and 86% said Leader of the Future content was relevant to their job.
In 2022, Leadership and Management Journeys will evolve with more experiential learning to accelerate and enhance leadership skills and strategy execution.
As we’ve championed Inclusive Diversity & Equity, participation in internal and external mentorship and development programs increased substantially in 2021, with a record of 240 Allstaters.
In 2021, Allstate expanded its partnership with Bonfire, an external development program for women, nominating over 250 high-potential Allstate women leaders to participate. This expansion will help place more women in the executive succession pipeline, address gender disparity among leadership and provide leaders with valuable allyship tools.
In addition to Bonfire, Allstate partners with other developmental programs for women, reflecting the investment we make in our people. Partnerships with Women Unlimited, Leading Executive Women and Menttium help develop high-potential women and provide mentorship opportunities to inspire and enable women to overcome barriers in the workplace.
The Power of Mentoring for Inclusive Diversity
Allstate’s The Power of Mentoring for Inclusive Diversity (MInD) program was redesigned in 2019 to increase focus on employees’ careers and expanded to include all underrepresented groups of all genders. This program provides a network of internal mentoring relationships, builds capabilities, facilitates knowledge sharing and strengthens business acumen.
In 2021, MInD engaged 76 high-potential managers, senior managers and directors, all women, ethnically and racially diverse employees, and members of the LGBTQIA+ community. These employees were nominated to receive executive mentorship and networking opportunities.
Read more about our efforts to advance diversity at Allstate in the Inclusive diversity and equity section of this report.
Allstate’s Talent Share program offers short-term internal development opportunities to gain valuable business acumen and on-the-job experience. Participants learn new skills and build relationships that can help grow their careers. Managers play a key role in developing Allstate’s internal talent. Talent Share participation has more than doubled in 2021, with a record of 269 participants and a satisfaction rate of 97.5% among participants and leaders.
Culture Guide Program
In 2021, Allstate launched the Culture Guide Program. It’s an eight-month engagement that helps new employees develop personally and professionally by networking with a tenured employee. An employee guide helps the new employee navigate and understand Allstate culture, resources and processes.
Our annual Inspire survey gives Allstate feedback about employee engagement and its drivers. In 2021, 84% of all eligible employees responded to the survey. The survey results showed that 82% of employees have a favorable view of engagement at Allstate. Our leadership teams get feedback from the survey on 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 show that providing employees with exciting career paths and educational opportunities improves morale and engagement.
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 helps us determine which efforts are most important to support employees’ satisfaction and well-being. The program 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.
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 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 2021, Allstate’s total employee turnover was 28.3%, and voluntary turnover was 23.1%.