Allstate, the giant insurance company, has made significant strides in adapting to the evolving workplace landscape. The company has implemented a flexible work policy that allows employees to work remotely or in a hybrid model, depending on their role and specific needs.
Key highlights of Allstate's new work policy include:
- Hybrid Work Model: Allstate has embraced a hybrid work model, allowing employees to balance their work and personal lives. This flexibility empowers employees to work from home, the office, or a combination of both.
- Coworking Spaces: The company is investing in coworking spaces, providing employees with convenient and professional work environments outside of traditional offices.
- Employee-Centric Approach: Allstate's focus on employee well-being and productivity has driven the adoption of this flexible work model. By empowering employees to choose their preferred work arrangements, the company aims to boost morale, attract top talent, and enhance overall job satisfaction.
"Flexible and remote work options are here to stay and will help improve diversity in cybersecurity," said Donna Ross, CISO at Radian Group Inc. "The rise of flexible and hybrid work models has transformed the way we think about productivity, collaboration, and work-life balance. What was once a necessity during the pandemic has become a strategic advantage for both businesses and employees."
Derek Fisher, Executive Director of Product Security at JPMorgan Chase & Co., and an External Advisor at Temple University, said, "Moving back to 'in-office mandates,' regardless of how many days, has brought back the sense that you are not trusted by your employer. We've learned during the pandemic that knowledge work can, and always will be able to, be completed regardless of location. Having access to what makes you comfortable and at ease allows you to focus your attention on the tasks you have been hired for."
"Many individuals have long, difficult, and stressful commutes. Or have challenges with finding childcare that is flexible and cost-effective. Or don't work well with the constant distractions and context switching that comes with the dreaded office 'walk-by' questions. Or even simply work better during non-traditional hours and days. Further adding insult is the fact that in most cases, employees return to the office to simply join virtual meetings due to the geographically dispersed nature of their workforce (which was happening way before the pandemic)."
Dan Salcius, Senior Writer and Content Strategist and Dun & Bradstreet, posted on LinkedIn these further insights on the new policy, adding that "Flexible work leaped 1,000 steps forward."
1. 99% Remote or Hybrid Workforce: Employees choose what works best.
2. Coworking Spaces: After selling the Chicago headquarters and reducing office space, Allstate partnered with LiquidSpace to provide coworking spaces in cities nationwide.
3. Innovative Office Design: Leased spaces feature cafes, quiet libraries, and event spaces to support new working methods.
4. Increased Job Applicants: The flexible work policy has led to a 23% increase in job applicants and double the applicants for roles where flexible work is an option.
5. Cost Savings: Real estate spending has been significantly reduced from $382 million in 2020 to $138 million this year.
6. Focus on Collaboration: New workspaces facilitate collaboration and team-building activities while avoiding the inefficiency of full-time office returns.
Salcius added a comment from Lauren DeYoung, Allstate's workplace futurist: "For years, the saying was, 'Build it, and they will come.' Now, it's 'Let's see where they go, and we will build there.'"
Allstate has no plans to return to pre-pandemic days of offices around the country. It cut annual spending on corporate offices from $382 million in 2020 to $138 million this year. The company still has 7,100 local storefronts that individual agents own and operate.
While those offices for providing in-person service will likely never fully go away, customers are more comfortable buying and managing policies online. Even generating quotes and assessing auto accident claims can be done digitally in minutes, rather than taking hours in person.
"Organizations offering flexible options have a significant advantage in attracting and retaining top talent. Today's workforce prioritizes work-life balance and values companies that trust and empower their employees," Ross added. "Flexible and hybrid work isn't without challenges. Maintaining company culture, ensuring effective communication, and managing remote teams require deliberate effort. Investing in collaboration tools, clear communication protocols, and inclusive policies can help bridge the gap."
Human Resources (HR) experts applaud Allstate's decision to embrace flexible work. They believe that such policies can lead to increased employee satisfaction, improved productivity, and reduced turnover. Additionally, flexible work arrangements can help companies attract and retain top talent, especially in a competitive job market.
However, implementing a successful flexible work policy requires careful planning and execution. HR professionals must address potential challenges, such as maintaining team cohesion, ensuring equitable opportunities, and providing adequate support for remote workers.
Businesses now occupy 210 million fewer square feet than they did in April 2020, according to CoStar Group Inc., a commercial real estate firm, and as of last year, nearly two-thirds of businesses planned to make further reductions, according to Cushman & Wakefield. By contrast, there are now 7,538 coworking sites in the U.S. as of October, up 22% over the past year, according to CoworkingCafe, a flex-space website.
Allstate's approach differs from the strict return-to-office policies taken recently by companies like Dell and Amazon.
At Dell, working remotely could mean missed opportunities for advancement, including promotions and/or new roles within the company. A leaked memo earlier this year showed the company was monitoring attendance and factoring that data in to employee reviews, rewards, and compensation.
"Companies like Dell and Amazon boomed during the pandemic when everyone was remote, including record revenue in 2021. Couple that with the reduced spend on office space, and you must wonder why some companies are bent on getting their employees back in the office," Fisher said. "It may be because 'that’s the way we always done it.' It may be because there is a control and oversight factor that plays in. It could be to justify the real estate that still exists. Or, yes, it could be because there is a need for collaboration."
Corporate employees at Amazon will be required to work in the office five days a week starting January 2, 2025. Amazon CEO Andy Jassy said in a September 16, 2024, memo to employees that in-person work was better for strengthening company culture. Amazon Web Services CEO Matt Garman said in a leaked meeting transcript from mid-October all-hands meeting that employees who don't like the work-in-office mandate could find alternative employment.
An October article in U.S. News & World Report lists the "30 Big Companies That Hire Remote and Hybrid Workers." They include 3M, Adobe, Airbnb, HubSpot, Intuit, Intel, PNC Bank, Splunk, Visa, and Workday, among others.
"Flexible and hybrid work models are more than a trend—they're a fundamental shift in how we work," Ross said. "Organizations that embrace this change and invest in the right infrastructure will thrive in this new era of work."
Fisher added, "Companies like Allstate are showing how it can be done to balance the needs of the company, versus hiring talented people that can accomplish the work before them. While the outstanding questions of how to build teams cohesion and enable career progression are certainly concerning for not just employers but also the employees, we should recognize that these are adaptions that people managers must take on.
"Times aren’t changing...they’ve changed. And in a few years, we’ll understand which method works best for both the employers and employees. Hint, we’ve figured this out during the pandemic."
