Thread regarding State Farm Insurance layoffs

Two years of failures

Two years ago new leadership at the highest levels took over control of State Farm and have begun a massive, far-reaching overhaul of every department of the entire company. As a result of these massive and still-in-progress changes, many long term employees have lost their jobs and many others will soon lose theirs.

The changes are supposed to make State Farm much more profitable. They are failing. Very badly.

In the first two years of these changes we have lost billions of dollars of profits, we have lost over one million customers, and we have (and continue) to lose many of our best employees at many levels (workers, bosses, etc, etc). No one is safe from becoming unemployed and many employees are understandably stressed out because their future employment is now very, very uncertain. No one knows when these changes will be concluded, either.

Posted by @SwyQoB7-ise in another thread. I'm sorry for copying the text, but I believe it deserves to be on the front page.

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Post ID: @OP+Szyzotw

16 replies (most recent on top)

@Szyzotw-7pmr

You are so right. Many of us know we are providing crappy service but are stuck in the middle of this crap the executives have pushed on us. I know so many people taking 10-20K a year pay cuts just to get out of this toxic environment.

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Post ID: @7rvw+Szyzotw

Former claim rep and underwriter here. A decade in ops and another couple in Agency. It’s a mess everywhere. Agents are struggling mightily as well. Most have stopped pushing for bonuses and perks because they are unobtainable in most markets. Agents see falling income but not falling expenses. We’re trying to pay office expense, payroll and payroll taxes, advertising and marketing, etc. Moving to Agency was a big shock...one that you don’t understand until you sign the front side of the paychecks, and they come out of your own bank account. Angry customers have only one place to call, and that’s the agent’s office. Every letter that goes out says “contact your agent if you have questions” but we no longer have a place to get any answers. It’s hard to attract and keep team members when they spend most of the day getting yelled at over the decreasing level of service from State Farm. Trust me when I say they still want an agent. But they expect the agent to have special access, and we now call the same toll free claim number as the customer, and wait on hold in the same queue. It’s frustrating for the customer, the agent, and operations folks. But Exec is happy.

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Post ID: @7pmr+Szyzotw

Any claims department is only as good as the people it hires, retains, or promotes. It's official: We s---.

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Post ID: @2qia+Szyzotw

The auto claims department is deteriorating into ruins. Service is so bad long-term employees say nothing and count the moments until they can retire, provided they are not fired or downsized first. 95 percent of our new hires are mediocre at best, training is a joke, and 900,000 customers just last year decided we over-price and under-deliver. If our promise to pay turns out to be merely lies, we are destined for failure. Makes you wonder why any of this is desirable, or why it is tolerated.

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Post ID: @1qqf+Szyzotw

Stop whining.

You're the only one whining. Like you do in nearly every thread you post in. You sound like a two-year-old with all the griping and moaning you do.

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Post ID: @1hgr+Szyzotw

What a bunch of Whiney babies. These changes are long overdue and are bringing about the type of modern improvements we need.

LOL. You're very, very confused. Nearly all the changes made in Systems are a direct result of CDE -- the executives trying hard to undo their mistakes. Too little, too late.

If you can't see that now, you will. Unless you're really as dumb as your posts make you appear to be. Which is entirely possible.

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Post ID: @1xje+Szyzotw

Why are their still so many externalsin Systems when they are letting internals go? Externals exist for a reason and that is for the flexibility to downsize/temporary labor. TEMPORARY .....Systems Execs.....TEMPORARY! You guys really don’t seem to get the fundamentals of business or Systems for that matter.

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Post ID: @1bcf+Szyzotw

PREACH Not Sarah! so accurate!

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Post ID: @1led+Szyzotw

Poor brainwashed "Sarah". (Or, is "Sarah" Tipturd's alias?) Have you seen all the green badges walking in the tunnels ALL THE TIME? The externals aren't doing crap right now.

Bottom line is that an overhaul is overdue, but it's being done in the most unprofessional and chicken sh-- way. 1) current execs should have been fired over the hubs DF, AP, SA); 2) new execs probably arrived in trojan horses who's loyalties are with Progressive or Geiko! They are ripping apart the company from the inside-out and laughing all the way to the bank!

State Farm and its "leadership" must be the laughing stock within the industry and all Fortune 500 companies. In fact, in D.C., how can Tipturd be taken seriously if he can't manage his own household (multiple affairs), let alone manage a company the (shrinking) size of SF. Most importantly, he's lost ALL creditabilty with the employees. He is truly loathed by all! When will the Board wake up?

The company will never climb out of this mess. They'll no longer attract the cream of the crop employees as in previous years. Their reputation is ruined for many years to come. Current and recently released employees will see to that.

How much money is being spent on the continuous training in the hubs because of the rapid and continuous turnovers? We train them, then they job jump. The hubs should never have been approved in those areas. Long gone are loyal employees.

The agents/agent's commisions must be eliminated or drastically reduced before SF decreases the expense ratio. They should be employees at this point. Agents are a thing of the past. People do not want to deal with them.

Half the money spent on this transformation could have been spent on a new Claims system! That would have solved a HUGE problem, that has since manifested a domino effect throughout the rest of the company.

If you don't take care of your employees, the employees won't take care of the customers! The customers will always get treated the same way the employees are being treated.

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Post ID: @1ozn+Szyzotw

PLA is exactly right. Although the estimate to tie shoe laces at 10,000 hours would be the initial estimate and then systems would claim scope changed from left shoe to right shoe and it will now take 100,000 hours. And btw SF does control their investments-obviously not the market. No other insurance carrier including the almighty GEICO had comparable investment returns.

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Post ID: @1ker+Szyzotw

So you think the changes these schmucks have made have a single thing to do with increase in net worth? That’s the stock market dummy and they don’t control the investments. Millennial fool.

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Post ID: @omt+Szyzotw

What a bunch of Whiney babies. These changes are long overdue and are bringing about the type of modern improvements we need. We have gained billions in net worth last year. We have indeed lost a million policies which are due to big rate increases in 2017 partially bc we have a very high expense ratio. We need to trim because we run much higher expenses, mostly employee costs, than every other insurance company. And if it didn’t take “Systems” years to get something actually implemented, we wouldn’t be this far behind. Ask Systems for an estimate to tie their shoelace and it will be 10,000 hours. The only people that actually get anything done in Systems are the externals. If you hear a Systems employee complain, ask them if they’ve ever worked past 3pm on a Friday.

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Post ID: @pla+Szyzotw

The OP is correct, except that I would add that in Systems the overhaul started 7 years ago. And although Tipsy wasn't the CEO, he was running things. And they effectively ruined Systems, like they have ruined every department they have touched.

When will the board realize they are destroying the company?

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Post ID: @bdh+Szyzotw

Just wait for Agency convention this Fall. Agents are going to lose their minds when they realize how far behind the company is with systems, claims and mobile technology.

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Post ID: @qie+Szyzotw

Perfectly stated

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Post ID: @gso+Szyzotw

You cannot be this dumb. The issues we see today started long before. Stop whining.

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Post ID: @ynd+Szyzotw

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