As our nation becomes more ethnically and culturally diverse, companies are under pressure with the issue of workforce diversity. Managing diversity is not a new issue faced by companies. But the way it is used or managed has changed. The latest development is to use diversity as a competitive business strategy. Allstate is one of companies that is culturally diverse and is seeing improved results ranging from better customer satisfaction to increased sales. For several years, diversified workforce was social responsibility and legal necessity. It was thought that competitiveness and corporate social responsibility were opposing policies. A competitive organization was driven by profit maximization. But in today’s world, both views have converged. Both are equally important for business. Allstate is one such example.
Allstate insurance company has been managing diversity which is closely associated to its overall corporate objectives. The company launched its first affirmative action program in 1969. The focus was on affirmative action and diversity awareness through education and training. Allstate formulated four specific steps – succession planning, development, measurement, accountability and reward to create powerful diverse environment that had positive impact on business results. All the elements included in the steps are aimed at retaining the best employees. Under succession planning, Allstate uses several methods to seek out the best candidates for each key position. The main purpose is to ensure that workforce is diverse at levels. As a result of succession planning, 40% of Allstate’s executives are women and 20% are minorities. Through the development process, all employees receive an evaluation of their current job skills and ways for developing skills required for advancement. Twice a year the company provides a survey to its employees, which is part of measurement step. The feedback from employees helps in creating plans to solve problems and...