Allstate, one of the largest insurance companies in the U.S., has decided to cut more than half of its traditional office space. The company is instead opting for a flexible work strategy that allows teams and managers to choose their own work arrangements, according to a report published by Fortune.
The high-level decision comes at a time when the return to office debate has been heating up with more companies issuing return-to-office mandates.
This makes Allstate’s approach somewhat divergent from the broader corporate expectations. Allstate’s strategy, which led to the sale of its Northbrook, Illinois headquarters in 2022, suggests a different trajectory. It’s reported that the company now operates with 99% of its 54,000 employees working remotely or in a hybrid model. The company’s remaining physical spaces have also been redesigned, transforming from traditional office setups to more social/collaborative hubs.
This flexible work strategy has proved to be very beneficial for Allstate. After implementing the flexible work policy, the company reportedly experienced a 23% increase in job applications — including a 33% rise in diverse applicants.
Additionally, internal mobility has also improved — with 40% of open roles in 2022 being filled by internal candidates.
To navigate this new work environment, Allstate also introduced a new executive role called the “workplace futurist,” currently held by Lauren DeYoung. The new position is designed to help integrate HR, communications, real estate, and technology functions by guiding the distributed workforce through these changes.
Allstate’s move is suggestive of a broader trend in the workforce, where flexibility and remote work options are becoming increasingly valued by employees and team members. The flexibility trend is not only reshaping how companies operate, but also how they attract and retain talent. Considering its size and influence, it’s possible that other companies will follow in Allstate’s footsteps by embracing flexible work arrangements as a key component of their operational strategy.