Is failure possible? I would not be surprised if SF failed and went under. Other large companies have. Too many changes too quickly and nothing has been thought out. They are desperately trying to find something that will work while employee morale continues to discenigrate. The good employees who can leave SF have or are leaving.
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Domino effect... anticipated. Most of us that have been here for 20, 30 years have never witnessed anything like this. Customers shouldn’t come first, but your employees. Treat employees with respect and sense of caring, your dividends will be off the chart and so will service to customers. Employees go to neighborhood events, purchase groceries, visit with neighbors, go to the dentist, attend children sport games.... to name a small amount of whom we come into contact. When asked what we do, and about our employer, we are embarrassed . We share our work, life, play, telling them of punching a time card, being, micromanaged, pay ceilings decreased, forced overtime, and always being blamed for delivering poor service, We have repeatedly begged for a new phone system. Nope, costs too much. So we have Total Loss giving gifts to customers because of crappy service and most recently Section Managers speaking to employees on how we can do better job of apologizing to customers!
And finally, the # of policies that will be cancelled, along with our friends, family members, neighbors church members, and so on. Just to scratch the service.
Things are obviously bad since I left the company a few months ago. Fortunately I left on my own volition. However, in my old job with the company I had the “privilege” of working with some executives. And gained some valuable insight - notably, that one year before all of these changes started happening, the company worked with the Federal Reserve to earn the designation “Too big to fail.” Once they received that designation, they started doing the reorg efforts to cut employee numbers. What this means is that there is no incentive for the company to do anything other than operate without any meaningful culture or care for their employees. They will remain solvent and so long as the executive benchmarks (which are based on total financial strength) are good, the company will continue to treat employees as completely disposable. If the portfolio is good, the execs get their bonuses. Tipsord is a horrible CEO, but he’s not looking to be liked for run a neighborly company - he’s looking to get paid. And he has an emergency parachute in the form of the Fed Reserve should things get dicey.
Yes Tipsord is incompetent. His still being there is proof the board is a joke.
Losing money and customers at unprecedented rate. If Sf wasn’t mutual he’d be out already.
No one I know has confidence in him anymore.
A quote from Glassdoor:
“CEO was promoted despite being responsible for a very negative impactful 3 year initiative that destroyed morale. Company performance has declined rapidly since the transition from Ed Rust Jr. In a public company this would not be acceptable.”
Why is Tipsord our CEO? Tipsord has done nothing to turn our company around. With Tipsord at the realm our company will fail. It is a matter of time. The first steps should have been finding a real CEO, cleaning house across the Executive and Management levels, ridding our company of employees who are not performing rather than shifting them to other areas, bring in top known performers in the industry that have been employed outside of the Farm, enlist industry consultants, seek innovative ideas that can be implemented and built upon, and last but not least listen to our customers.
All the good Executives/Managers jumped ship years ago. Either retired or went elsewhere. They saw the writing on the walls.
“If I’m an executive and I impregnate my leadership coach out of wedlock, is that a code of conduct violation?”
Not the only lascivious rumors about execs heard around the water cooler.
If I’m an executive and I impregnate my leadership coach out of wedlock, is that a code of conduct violation?
It comes down to numbers... load them up til they break and leave ... tell us they have no “plan” for the multi office closures ... keep adding requirements and not providing for employee staffing dips due to known vacation and training, expecting more to be done in less time, with fewer people, cutting over time, upper management telling you not to follow the written procedures or you will not keep up, but not telling you which ones ... and at the same time being told there is the “Memo” from corporate you are not allowed to see or have a copy of that says you will be written up if you do not follow the procedures and if you make any mistakes... all in an effort to drive experienced (older) employees out so they can avoid paying severance when the offices do close ... do that with about 50 “experienced” employees... save over $ 1 billion. Yes that is “B” - billion in saved severance, salary and reduced retirement and medical benefits. The employee has to decide how much will they stand. Is it worth it?
When they suddenly call you in without real warning ... have your parting speech and questions ready because you will be in such shock you won’t remember what you would want to know or say. They silently march you out the door like a criminal, you are not allowed to even return to your desk for your keys or personal belongings, they bring them to you and later ship part of your stuff. No thank you for your years of service or discussion over what was happening, just a voice over a speaker phone saying “you’re terminated” ... this is if you have not voluntarily quit. Being told by personnel there is no discussion, no negotiation, no details. No recourse in most situations. Clear your desk, have your speech and questions and keys in your pocket. Get your finances and resume in order so you are prepared just in case. Decide the limit of what you will take and don’t let it destroy your health... a sad state at the Farm but it is the ever ramping up reality for the past several years. People leave and we don’t always talk about why. Not getting to say good bye is the hard part. Good bye to those I missed going before me and good bye to those I missed when I left. Good luck to those left behind. Stay strong and take care of yourselves.
There is life after State Farm. It is sad to say good bye to a friend, a good neighbor but that company is no longer there. I hope SF finds their way to a structure and model that works with better working conditions. The company culture needs enrichment and a true return to its roots.
/95+B is assists is all liquid. /
If SF has 95 billion in LIQUID assets, then they have far more than that in NON-LIQUID assets. Which is why I asked. Trying to figure out whether we're talking about stuff like buildings and land (non-liquid) or stuff like stocks, bonds, cash, etc.
Because if the 95 billion was both liquid and non-liquid, they'd have to start breaking things apart to crack the nut on some of that.
95+B is assists is all liquid. SF simply has to carry enough reserve to cover potential losses.
My husband works for an insurance company who is a competitor of State Farm. They analyze markets, trends and changes of other insurance companies in order to remain competitive. They said State Farm will be out of business in the next 10 years based on the changing model. That was 2 years ago and I didn’t believe it for a second then. I now totally 100% believe this could happen.
Yes. Those chosen to lead the company have no clue what they are doing. When asked a direct specific question the answer is “we don’t know”. locations were sold and new locations leased for 5 years. Those locations are now closing (Tacoma) after HR and Management pleaded with experienced employees to get them to move to assist with the start-up. They are going to be out of a job this year. Any location leased is a temporary hub. Don’t look for it to stay. State Farm also hires contract employees to let them go and then in 3 months they have hired more contract employees. It is a cycle. They are grasping for solutions without having an end result in mind. Being innovative is one thing but if you do not have the leadership who has the capabilities to get you there it will not work. Right now it’s the blind leading the blind.
State Farm is being sustained by investment income. They are losing money hand over fist otherwise. M Tipsord will be the demise of this once great company. He makes bad decisions and does not listen to consultants. Rumor is that is why E Rust was asked to stay on the board.
/The company has +95b in assets./
How much of that is liquid?
The investment income is the only thing keeping State Farm afloat. Last year, the company lost $7 billion providing insurance! That's billion with a "b"! This is completely unsustainable.
I think with investment income State Farm will be fine for at least the next three years. I do predict State Farm will continue to lose customers. Heck, I am pulling my eight policies away from State Farm. After being with them twenty-five years and one $2K claim my rates increased. That was after I got a snide letter that my rates may increase after one $2K claim in twenty-five years. I also think the claims handling has gone down the tubes in the last two years and internally I observe how wasteful State Farm is on a daily basis. I think failing is not in the imminent future. However, it’s a possibility in years to come. I am already worried about my pension!
The company has +95b in assets. It continues to increase due to investment income. While things are terrible for employees and customers right now, net worth is strong. Assuming we continue to lose business, it will still be awhile before we go down the toilet. It will be a very painful fail (pension, salary, people count, agent contract, etc.). While we need to modernize, the method Tipsord has chosen has been painful, ugly, and evil.
Yes it can happen. State Farm has spent over a decade promoting individuals based on answers to a list of subjective interview questions. That along with who you know within the organization was a solid for getting promoted. Nothing at State Farm is based on your prior work experience, what your degree is in, or how well you perform in your current role. You are indeed more promotable if you have never seen the inside of any other company besides State Farm. There is also a little know fact that people have been promoted to get them out of somebody’s hair (mostly Analysts and ISD). Currently, there are supervisors within the organization who have never supervised, don’t know how to lead, were horrid at the job they used to do but they know somebody, gave interview answers that were wanted, and blindly regurgitate whatever Executive Management spews. They don’t think for themselves or outside the box. They are puppets and that’s what State Farm has turned into over the decade. How will a company continue to be successful under these circumstances? Major cracks have alright developed. Waiting for the sink hole.
Yes, they sure can fail. One of the major problems throughout the organization is promoting people to different departments without experience in that department. It has and is happening in claims, underwriting, IT, agency, HR, bank, etc. There belief over the years that you can manage in all departments without knowledge of that department is and was stupid. Now, you have management people just trying to hang on and they know it is not safe for them to "rock the boat." Therefore, no one feels like they can tell the "chain" of command what problems there are. Everyday on the HUB i see more and more people with 20+ years retiring because all areas have become unbearable. Good buy Good Neighbor, you are now a Neighbor with barking dogs i.e. clueless management who talk/bark.
SF has been a great parent for me until recently. It raised me, fed me, educated
me, and developed me. It then turned to drugs and alcohol and began abusing me
and the rest of our family. It now just sits there in its chair, in a stupor, waiting to die.
Burger Chef, Pan Am, Blockbuster, and lots who filed Bankruptcy. Only to name a few. SF is not exempt from failure.
I am feeling the depression. When I am at work, I feel I am walking on egg shells. When I am home I keep replaying the previous day and dread the next. On weekends, worrying is on an endless loop. I have a family to feed, bills to pay, things are awful at work, how can I survive at work, what crazy changes are next, it goes on and on. I need to get out.
Absolutely. I suffered from depression until I finally left a few months ago after seven years there. I am now where I am valued. They are headed for failure.
So glad I left. No more stress and anxiety going into that hole everyday.