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An Assessment of Statefarm’s’ Labor Market

Introduction

This paper presents a detailed assessment of the labor market from which the Statefarm Insurance Company draws its employees. The report looks at the size and demographics of the labor market as well as the specific career qualifications of the employees. The report also assesses the level and appropriateness of the training program offered to new employees to prepare them for job responsibilities at Statefarm insurance. Every company has its own culture and system of work. New employees must be taken through a training program to familiarize themselves with the culture and working process of the company. Such a training program must be tailored to the human resource requirements of the company.

Company Overview

Statefarm is one of the largest Insurance companies with its headquarter located in Bloomington, IL. The company has other branches located in California, Florida, Heartland, Canada, Texas, and many others. Statefarm provides insurance and other financial services such as mutual funds and banking services. In order to remain competitive in the highly competitive business environment, the company invests in result-oriented employees. The human resources department developed a compensation program that rewards performance as a way to retain and motivate performing employees.

Employees’ pay packages are always pegged on the current labor market rates as well as the skills and experience of the employees. The reward and salary scheme is continually reviewed at least on an annual basis to ensure that it is tailored to the standards. The company provides equal promotion opportunities to its employees based on merit (Heath and Vasquez, 2001, p. 351). The company’s diverse employee team is as wide as its clientele. Statefarm believes in the ability of its employees to work to the demand policyholders holders. In this regard, the human resources department recruits employees who are up to the challenge of never-changing changing clients’ needs.

Discriminatory factors such as race, ethnicity, gender, and disability do not count in securing employment at state farm Insurance companies. Employees are required to regard one another as well as the customers to the company. Employees are treated fairly and in accordance with the state laws of employment (Hellriegel and Slocum, 2007, p. 217). The chairman and CEO Mr. Ed Rust believe the diversity of his team is what has built the company to its current levels. Employees are allowed to contribute their diverse experiences and skills towards the continuous improvement of service provided to the customers.

Population and Demographics of Statefarm’s Labor Market

Statefarm Insurance company’s business lines include; property, causality, health, life, and watercraft insurance. It has an employee team of close to 70, 000 people working in various departments (Plunkett, 2006, p. 434). Sales and recruitment of new policyholders are carried out by its agents who are distributed in all regions that the company has established branches. About 17,000 agents work for state farm Insurance companies in its 16,000 agents’ offices (Plunkett, 2006, p. 434). The company’s human resource department has developed a unique recruitment process. Job seekers sent their applications online through a careers center on the company’s website “statefarm.com.”

Statefarm has attained a record as a company where employees are treated. Several organizations have recognized the company for being the best private employer. Among the awards the company has received include; the best company employing multi-cultural women ranked in the top 50 employer list in 2009 among other awards (Lovelock and Wright, 2002, p. 334). The company employees its team from the age of 20 years own with qualifications of at least a bachelor’s degree. There are several career areas on Statefarm’s’ employment list. The career areas include; agency, customer care, actuarial, marketing, personal relations among other areas (Lovelock and Wright, 2002, p. 333). These areas require well-qualified individuals who are up to the challenge of the company’s client. To enable employees to meet the dynamic and challenging work environment, the company organizes various training programs for employees.

Job applicants start by registering on the site to obtain both a user name and a password before posting their resume. The resume is kept in the applicant’s database for a period of 12 months before being discarded by the system. Besides the normal employees, the company also offers students an internship program. The internship program is offered for a period of 11 weeks both at the headquarters and its branches across the US. The internship program is eligible for both graduate and undergraduate students with a good academic performance record.

The Research and Development Center

Statefarm Insurance in collaboration with the University of Illinois runs a world-class research and development center. The center gives opportunities to students both in the graduate and undergraduate programs to take part in the company’s research programs. Statefarm’s employees also receive further pieces of training besides taking part in the research work. Findings from the research are implemented in the running of the company.

The research center comprises the section for consumer feedback. Statefarm’s’ product consumers as well as the general community are encouraged to give their feedback about the products through the feedback center. Students and the staff use the feedback to evaluate consumer behavior. This information helps the company to develop products tailored to the needs of the consumers. The interaction between the students and the state farm staff gives both students and the staff an opportunity to explore more innovative opportunities. The research and development center is used to disseminate relevant information to the staff. It also caters for the staff’s training needs to prepare them for the changing work responsibilities.

With the growing international business opportunities, Statefarm Insurance Company has ventured into the Asian, Spanish, Chinese, and Latin markets. The company embarked on a cultural awareness program for its employees. This is aimed at empowering the employees with cultural skills to serve the customers from diverse regions. Cultural awareness skills also focus on issues of women and young adults who also have unique insurance demands. The company’s punch line is “a good neighbor.” Its employees are also trained to support the company’s cooperate social responsibilities (Hellriegel and Slocum, 2007, p. 216). Statefarm’s CSR projects are modeled on its motto, aiming at improving the living standard of the communities where they operate.

Conclusion

The success of any organization depends much on the support of its employees. Many companies struggle with the problem of attracting and retaining talented employees who are up to the challenge to meet the demands of their customers. Poor pay packages and unfavorable working conditions are among the many reasons why employees keep moving from one organization to another, looking for competitive employers. The human resource department has a task to formulate companies working culture that values people and rewards their efforts in relation to market standards and qualifications.

Companies should collaborate with higher learning institutions especially in the areas of research and development. Such collaboration results in mutual benefits both to the learning institution and the company. Students in the learning institution can benefit from internship programs in the research and development centers established. Internship programs provide students an opportunity to feel the work environment and apply their skills and knowledge. Companies on the other hand would benefit by gaining relevant information required for them to offer their customers services tailored to their needs.

References

  1. Heath, L., R. and Vasquez, M., G. (2001). Handbook of public relations. California: Sage publications, Inc.
  2. Hellriegel, D. and Slocum, W., J. (2007). Organizational Behavior. Mason: Thompson South-Western.
  3. Lovelock, C. and Wright, L. (2002). Principles of service marketing and management. New York: Prentice Hall
  4. Plunkett, W., J. (2006). Plunkett’s Banking, Mortgages & Credit Industry Almanac 2007: Banking. Houston: Plunkett Research Ltd.
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