People

State Farm preparing for predicted workforce changes

What if you held a job fair and nobody came?

The concept that there are not enough skilled workers to replace retiring Baby Boomers – those born between 1946 and 1964 – is about to become a reality.

In 2004, the Census Bureau reported the U.S. labor force will continue to age at a rate four times greater than the growth rate of the overall labor force. But, the workforce of tomorrow has changing needs that will impact how companies engage and retain employees in the future.

State Farm® looked within and asked current employees for solutions. In 2006, the Continuous Renewal Group (CRG) initiated conversations with leaders, 5,000 employees and 850 former employees to determine what issues State Farm will face in the future

“We began by asking employees why they came to work for State Farm, why they stay and what would cause them to leave,” said Colleen Van Dyke, Vice President of Agency-CRG.  “We then probed deeper to learn what influences employee engagement and the resulting impact on current and potential employee behavior.”

Things like personal relationships with management and peers, Company culture and the ability to grow and develop were all factors identified as driving engagement.

Preliminary research, including internal findings and the study of 50 other companies, indicates that “engaged” employees, those who believe they are contributing to the Company’s overall mission, are more capable of achieving desired results. 

Although State Farm already boasts the lowest voluntary termination rate in the insurance industry, an ever- changing workforce indicates the danger in taking this for granted. State Farm plans to heighten awareness of employee engagement and the value of retaining a talented workforce in 2007. 

“We are gaining great insight into what matters to different employee segments at different points in their careers,” said Van Dyke. “Engaged employees are, and always will be, a critical element in our long-term success as an organization.”

The CRG study recommendations for maintaining employee engagement and retention will be provided to the Chairman’s Council for consideration in June.

“We are gaining great insight into what matters to different employee segments at different points in their careers.”
Colleen Van Dyke – Vice President of Agency-CRG

Talent Profile: Building a Career

Anticipated nationwide skilled workforce shortages have increased competition for aptitude. Talent Profile is an internal online tool that captures valuable information about associate experiences, education and competencies. Employees can also indicate their career goals. 

Leaders are then able to make recommendations and assessments of employee potential for taking on new roles and responsibilities.  Together, employees and supervisors can map out a development plan. 

When hiring managers have an opportunity available, they can easily access talent profile and find individuals whose interests and skills sets match their needs.   

“This tool gives employees the chance to take charge of their career by helping them outline what they’ve already achieved, where they’d like to go and how they can get there,” explained Mary Schmidt, Vice President-Human Resources.  “It also initiates crucial conversations between supervisors and employees about development and the attainment of realistic career goals.”

“As an enterprise, this tool helps us better understand where we are in terms of talent, what investments we need to make to prepare our workforce for future challenges and what we need to look for as we recruit so we supplement the skills sets already part of our organization,” said Schmidt.

Talent Profile rolled out Companywide in 2006, and feedback has been used to add enhancements in 2007.  Employees can learn about the Talent Profile through the Company intranet.

Definition of excellence

Recognized as an employer of choice, State Farm® is committed to fostering diversity and inclusion.  Agents and employees come from diverse backgrounds, and are encouraged to use their prior experiences to build business strategies for the future.  Reflecting that commitment to excellence and personal growth, State Farm was recognized by many organizations in 2006.