Thread regarding State Farm Insurance layoffs

There is so much I can say about State Farm

I used to work at State Farm. I worked nine years as a State Farm employee. I quit the summer of 2017. I worked in Injury during my last year. While I was not laid off, I felt as if my hand was forced. There are a number of factors that made me throw in the towel: poor treatment of me as an employee; unethical if not illegal business practices; and poor treatment of the policyholder.

First, I would like to say when I started with State Farm; I was proud to be a State Farm employee. In training, the trainers always talked about going the extra distance for the customer and how good the company was to its employees. My first few years, it seemed that the company was doing good to satisfy its employees and policyholders. Continuing insurance education was constantly encouraged along with policies that supported the additional learning. The company was willing to pay for multiple retakes of an exam. These policies changed to the current one. The learning and development department has become leaner with more unforgiving policies. Employees are only allotted so much time per year for learning and development.

Poor treatment of me as an employee.

I have been going to school for 3 years and State Farm was always accommodating to my schedule. Then in Injury, I asked for an accommodating schedule such as I always had. I was told that I would have to use my time off and take 15 - 30 minutes of my PTO to use every time that I had to go to school. I constantly asked for schedule changes. Management would not accommodate; instead, my team manager said that I would have to appeal my decision to the claim manager who was above my section manager. He said that the most likely outcome would be that I would have to continue taking PTO. Also, I knew that if one of my co-workers would not get a more manageable schedule on account of her children, then I knew I was fighting a futile battle with regards to my work schedule. I found out that team work is only team work until I was out of the office. God forbid if I was sick because I would come into an excess of twenty voicemails for being out one day. Getting time off was worse than trying to get a bill passed through Congress. We were always told that the needs of the customer determined when people could be off. When asked for the metrics to support such a need, my team manager said that we could not look at the metrics or question them. Other offices such as those in Newark, Lincoln, or Birmingham always got preferential treatment. Before I became an injury claim specialist, I was a total loss claim specialist. While total loss was consolidating. my then team manager told us to consider looking for other jobs. Upper management then got upset at how low our morale was because of this.

Unethical /possibly illegal activities.

During my tenure as a claim representative in ACC and total loss, I found out that at that current time State Farm would not investigate fraud involving auto property damage losses less than $9,000, especially if the suspicious losses involved certain minority groups.

During my tenure as an injury rep., my team manager let people speak of how they were successful in settling injury claims. One claim specialist said that she lied so that she would settle low in her range of value. This was not rebuked by my team manager and the TM said something along the lines "you have to do what you have to do." She and other of my former teammates felt that the claims of others were much higher. There was an attitude that any means to settle a claim and settle as low as possible was good. Additionally, pressure came from upper management that our valuations were still too high, so management wanted to listen in our negotiations. Before I left, I had the understanding that State Farm is working on developing programs to suggest the valuation of claim for third parties to replace the valuation of a State Farm employee. Of course, management is saying that an employee can go against the valuation in certain circumstances, but management has been known to lie. Ironically, when it comes to settling claims with an employee State Farm has different approaches, especially if they have connections with management. I will note that this one employee that I knew because of his claim settled a pre-existing knee injury that had been allegedly exacerbated in an accident for over $40k. (There was very little documentation to support such an amount, but the employee complained and management was acquiescent.) That same employee a couple years later, got me as a claim specialist, and for a minor accident I valued that employee's claim low based on the facts of the claim. The employee contacted me directly through my email about his claim and had the expectation that his claim should get my undivided attention before anyone else's claim. (At the time, this was against company protocol, I'm unsure if this has changed.) The employee complained to my management about my negotiating because it was not in his favor, my team manager was a friend of the employee and had the claim moved to a different segment. I found out that the employee settled for higher than my evaluation. It seems perverse to me that State Farm treats some people better than others when as a company they should treat every person equally whether first party, third party, employee, or non-employee. If this had been a third-party claimant or even some other first-party policyholders, management would have been congratulating me on my evaluation.

In my segment of injury, we were overworked. There was a re-alignment so that the more "experienced" performers were moved off the team. These people had worse numbers than I did. Once that occurred, my numbers on the white board were among the bottom performers. Another peer and I had more claims than other members of our team, and because we had so many claims to manage, the other metrics such as number of calendars, availability, etc. followed. We were told to take the laptop home so we could work outside of the office or we were told to come and work overtime. On top of managing our own claims, management wanted us to answer everyone else's incoming phone calls that were bouncing around because of the volume of work.

I knew claim personnel that worked at their desks during their lunches and would be willing to assist their peers during their lunches because that was about the only down time they had to provide such assistance. On the other hand, I knew of claim associates who had such an easy work load that they could watch episodes of "Orange is the New Black" on a daily basis. I did not have the luxury of free time. Management complained that no one would make good liability decisions, that we were overpaying people for their injury claims, and management pushed us to encourage less personal contact between State Farm personnel (think auto estimators) and our customers. During my exit interview, I did not tell the HR person about people using their lunch time to service claims because I would want that employee to retain the right to sue instead of be fired.

Poor treatment of the policyholder.

Over time, State Farm has become more disrespectful of the policyholder. They believe in adulterated growth such that underwriting losses are so great that they warrant the rise in premium prices and which then that expense gets blamed on the employees. They have automated so many processes such that it is hard to have just one person to handle a claim. They have forced out many experienced workers to get cheaper and less knowledgeable claim handlers, this means that policyholders get a crappier experience because the company treats claim handling like the manufacturing of widgets. One manager told me, if 80% of people have a good experience, who cares about the 20% that do not. The processes in place are for the 80%, the people that do not have complicated claims.

There is so much more that I can say, but I have other things to do. Just my two cents.

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Post ID: @OP+RVNZys2

9 replies (most recent on top)

I would disagree with time reporting solely falls upon the employee. I would say at certain points honest time card reporting was discouraged implicitly by business practices. Take for example when an employee mentions at a huddle that she is working through lunch to meet her numbers and the manager laughs at the employee and think she is making a joke. The manager then says I hope you're joking. The company further encourages incorrect time card reporting by overworking their employees (at least when I was working in injury and total loss); by discouraging the taking of normal breaks (especially if the customers needs weren't being met); and by discouraging overtime. How is the employee who has unreasonable demands going to meet the demands placed upon them? Employees end up clocking out for lunch and working on their lunch. I saw this. I knew someone who was asked to quit their job and received a settlement for working through their lunch. State Farm has the unequal bargaining power. The corporate actions when I was working there indicated that the customer was more important than the employee; ergo, employee should sacrifice health, ethics, family and do what it takes to satisfy the customer. If the employee wants to meet or exceed the KPI's without working overtime, then the employee must not work on the clock. Other people took laptops home to manage their inventory from home. Again, these were my observations. I did not want my peers to get fired; I would want them to be able to seek legal recourse if it is an option. I view the employees as the underdog and State Farm leadership as the bully.

I would also like to note a few more items. I experienced race and gender discrimination. I was told that I was too much of a "white male" for promotional positions. (Please note I do not consider myself white). You may ponder why I did not take any further actions - racial and gender discrimination is ok according to the U.S. Supreme Court as long as it is being done to right past wrongs. I would like to also mention, I suggested that State Farm needed to have gender neutral bathrooms. I got a call from an HR rep, very nervous about how much this was needed. I said it was merely a suggestion if State Farm was truly a diverse workplace. He asked me again if I needed such an accommodation, I told him again it was just a suggestion if State Farm was serious about being a diverse and inclusive employer. (I was laughing on the inside though).

I think there is age discrimination going on. Those over age 40 should get in touch with each other. Age 40 and over is necessary to proceed with an age discrimination action. Based on peoples' comments, these layoffs may be a form of age discrimination especially if a disproportionate number of people effected are forty years of age or over.

Please note, I'm not attacking the employees. I am attacking any member of management that has been too milquetoast to have leadership courage and speak out against the commoditization of claims handling/insurance products, workforce management/forecast and scheduling, and the cheapening of the labor force at State Farm. I would like to mention Michael Tipsford's Founder's Day 2016 letter. Here is the important part:

Now consider the following trends and consider how well we are positioned to actually respond to these trends. Things like globalization, climate change, change demographics, slowed rates of overall growth, natural resources, the availability and the consumption.

Think about this notion of sharing ownership of homes and vehicles as opposed to owning them outright. Wealth accumulation and transfer that is going to occur but itís going to be concentrated in the most wealthy, job destruction and job creation and class consequences, particularly on the middle class.

As you reflect on that list, itís clear that the macro trends that were so instrumental in our earlier success are going to no longer exist.

MT is preparing the company for a bleak future, a future where insurance is not the principal product of State Farm.

To those of you who took the time and read this -thank you. May this provide a certain foundation for you to move forward.

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Post ID: @3lag+RVNZys2

Regarding working thru lunch. It would fall on the employee and grounds for termination. Accurate time card and F&S adherence. Also, compliance course of positive time card reporting.

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Post ID: @2ndr+RVNZys2

Yeah, there’s this Cliff Notes thing. Even abridged to fit in a single paperback.

Doctor Freakin Zhivago was shorter.

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Post ID: @2obk+RVNZys2

Kudos OP

  • 1,417 words

  • 8,053 characters

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Post ID: @2aci+RVNZys2

Don't disagree with everything you say. And State Farm has a lot of issues right now. However I am in injury right now and it must be a different part of the country than you. We do not treat our policyholders as you state in this email. And all of our us employees don't feel the same. While there is anger and emotion on a lot of the changes that you mention. I can tell you people around me are at the whole and want to still do a good job. So while I don't disagree with a lot you said I don't think it's fair to peanut broad brush because you're not stating just State Farm you're talking about the employees.

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Post ID: @1dnx+RVNZys2

Good post.

And ladies and gentlemen, this is WHY you must move your policies to another company as soon as is feasible. You don't want to have your claim go through the clowns making decisions over there now.

State Farm used to be really good at Claims. You could count on them. Not anymore.

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Post ID: @1nzi+RVNZys2

+1

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Post ID: @1xay+RVNZys2

+1

Thank you OP

Not sure if I agree with all you said - however thanks for putting this together

It's important that all voices are heard

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Post ID: @jsu+RVNZys2

You with a brownie point for the longest post ever entered on TheLayoff.com

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Post ID: @ooi+RVNZys2

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