Allstate Diversity

Allstate Diversity

Michelle Brown and Mariel Harmon

Davenport University

Abstract

Communicating effectively with others is key within any organization. The company Allstate has learned how to communicate effectively with their employees and clients to implement inclusive diversity. By doing so Allstate has been able to implement inclusive diversity from reaching out to different backgrounds, cultures and ideas to help straighten the ideal of innovation and creativity. Without a structured diversity program and understanding the challenges that come with diversity; Allstate would have a slim chance receiving a spot on Diversity Inc’s top 100 companies to implement diversity in which they have proven for many years now that improving diversity is a passion within their organization.

When you think of a great insurance company who comes to mind? There are several insurance companies that play a huge role to help others such as Progressive, State Farm, Liberty Mutual, Esurance, Nation Wide, Farmers Insurance and several more. Every organization has their own unique way of assisting their customers, suppliers, creditors, stockholders and employees. However, Allstate Insurance Company specializes in all of these areas but they take pride in improving their diversity program. Diversity is certainly a challenging issue to handle but yet it is the central key to having a successful diverse workforce. Allstate has discovered they can turn the challenge of diversity into an advantage by integrating a program that links diversity to strategic business processes. “For Allstate, the concept of diversity is not limited to ethnicity and gender. It is based on a wider perspective that includes diversity in age, religion, sexual orientation, disability, etc. Diversity at Allstate is rooted in the company's culture, which has embodied inclusiveness and equal opportunity since the 1960s but it wasn't until 1993 that it became a strategic initiative” (Diversity: A competitive, 1999). Allstate has taken on extreme measures to ensure inclusive diversity within their organization.

        Allstate headquarters is located in Northbrook, Illinois and has become the largest publicly held personal lines property and casualty insurer in America which was founded in 1931 but became publicly traded company in 1993. Allstate helps to ensure their customers are insured from auto/house insurance to life insurance. According to Allstate, their slogan “You’re in good hands” represents reinsurance to their customers, suppliers, creditors, stockholders and employees. At the end of 2012, Allstate total assets were $126.9 billion compared to $125.2 billion at the end of 2011. With over 70,000 professionals made up of owners and employees, 60 percent are women and 30 percent are minorities. More than 40 percent of managers and officers are women in which 27 percent come from one of five minority groups (Organizational Profile, 2014).

Allstate’s commitment to inclusive diversity is integral to who we are as a company. It affects everything we do — even the way we design products, create services and communicate with our customers. From customizing how we present information to meet the needs of a specific community to supporting bilingual agents, we are constantly striving to make it easier for all customers to do business with us (Allstate, 2008).

One company for all.... all in the family, all encompassing, all together, all in a day’s work, all inclusive, there’s a place for you are important values that Allstate employees go by in order to implement a successful diversity program. According to Diversity Inc, Allstate is ranked the 37th best company in 2012 to implement diversity throughout their organization because they continue to illustrate diversity management progress.

        A strategy for leveraging differences to gain a competitive advantage is key at Allstate. By implementing different backgrounds, ideas and cultures the organization is able to create a unique culture of inclusions that helps to strengthen creativity and innovation. According to Vice President, Michael Escobar  

Inclusive Diversity is a key business strategy and competitive advantage for Allstate. We are creating a workplace where you can pursue your purpose, be your best, and have meaningful work and opportunities to grow. When we leverage our differences we provide extraordinary results for our customers, shareholders, and employees (Allstate Insurance Company: No. 36, n.d.).

Interjecting day to day functions with the idea of diversity is very important at Allstate because they have established different processes that focus solely on improving diversity within their organization. Some of these processes are recruiting a mixture of different individuals to accomplish their goal of a proactive retention strategy, ongoing education and training for all employees and a rigorous feedback mechanism and community outreach. Recruiting individuals that have a diverse background is key. Allstate evaluates every candidate to ensure diversity is spread out equally for every position at all levels of the company. For example, if there are too many men in one department Allstate leaders recruit women candidates to ensure there is a balance within that department. Leaders within the organization have the responsibility of proactive hiring and promotion. On the other hand, an alternative recruitment method is also used which is to hire individuals who approach the company as future customers.

        When employees join Allstate they are given a booklet called “The Allstate Partnership” which describes what employees and the company can expect from each other. Diversity is implemented into their performance model due to the fact one of its main goals are to retain the best employees. Allstate uses succession planning to determine different methods to pick the best candidates for the job. After the best candidate has been selected within his/her first six months, diversity training is implemented. According to Lewis Jordan, senior HR consultant

Diversity training has generated positive results because it focuses on managing behaviors rather than changing employees' belief system. The sooner and clearer we are in helping participants understand this is about monitoring behavior and not about changing beliefs, that dispels any sense of discomfort (Diversity: A competitive, 1999).

        Employees who finish training benefit from this program because training doesn’t just focus on ethnicity but also makes you realize diversity isn’t just defined by color but includes gender, age, sexual orientation, physical abilities, women with children and without and etc. Allstate also provides employee resource groups which gives employees the opportunity to connect with others individuals who have similar interest in which these groups are inclusive. These groups are:

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