A big focus right now is how to control severance as the next few rounds of layoffs hit..There is talk of moving a large number of people to vendor reporting so when they are laid off, they would not be entitled to Allstate severance. Unknown what job positions that would be…
I fear this last chapter of American employment for Allstate is about to get very ugly. The ONLY thing that counts now is the bottom line and saving as much money as possible as they close the book…
I fear that many will wish that they were a part of the 2020 layoffs…
The end is near..
10 replies (most recent on top)
@tud+1heM8UDD, you are wrong…..
There is no law that protects you from being moved to a vendor or outright losing your job. If it is a large corporation, they only need to give you 60 days notice that you are gone…
It is probable that Allstate will be discontinuing positions and have the choice of letting you go or opening the position under seen by a vendor. In the second case, they owe you NO severance as they do not count you as an employee of Allstate at the time you lose your job….
You are free not to believe it….but you will likely see it occur.
I'd be interested to see the small print in our employment agreement. Big banks and other companies force move employees to vendors instead of severance all the time. More laws favor big business than us worker bees. If there is any way that Allstate can legally sc--w us they will do it.
JFC people. They can't move you to a vendor unless you except a job offer.
How did such a BS rumor start?
Layoffs very well may happen, but they cannot force you to move to another company.
The cruel intensions of this corporation has no low……….
Don’t accept the vendor job. Insist on your severance instead.
If you are RIFed from Allstate, you receive two weeks severance for every full year worked.
If you are RIFed from a vendor, you receive what the vendor’s severance package is, which is likely not as generous. And, accepting employment at the vendor will reset the clock.
So unless the retention bonus to join the vendor far, far exceeds your severance, it’s not a good deal to accept a job at the vendor. You have legal rights. Know them.
It is being "eliminated" in terms of Allstate however the vendor will have a similar position under their company. This is the ultimate way for companies to pass off their responsibilities of their impacted employees but unless many many employees or multiple large areas are involved it usually costs more than paying out severance or unemployment. Not enough were laid off in 2020 for this be an option. With many more being impacted than in 2020 and this impacting most onshore departments it is now more cost effective to go this route but the many thousands of impacted employees suffer and go through a terrible process.
My understanding has been that if an employee is let go via a reduction in force ( the position is still available in the company, but less of them) a severance is usually paid. If the the position is being completely eliminated, no severance is paid.
To the person who works in HR, I don’t blame you or would never trash you. None of this is your fault. Anyone who does bash you is a j.o. I’m sorry you have to deal with that and am sorry you’ll lose your job too.
This is just perfect. About the time round of layoffs this hits its peak the upcoming recession will be in full swing with the next quarter or two meaning the plentiful job market that has been for the last year and a half goes kaput pretty quick about the time we all need jobs. Start looking now!
This is true. As someone from Allstate HR that regularly gets bashed on this board just for my position I can say that this is about to get very ugly. And I too will be out of a job. Movement of employees to vendors to allow them to decide fate is definitely going to happen. Mainly to our customer facing claims and customer service employees. Once that happens Allstate has no bearing on any severance or unemployment that may result. This took place with a handful of impacted roles in 2020. About half of those were retained by the vendor. The vendor may do a series of tests and interviews to see what absorbed employees they choose to keep. There will also be opportunities to interview with the vendor for your eliminated roles however with the vendors being primarily overseas staffing pay reductions if hired into the vendor can be expected.
Approximately 50-60% of the U.S. workforce is expected to be impacted so severance all around is not going to happen. Most frontline roles will not have severance opportunities and will transition over to the vendor for job assessment and retention process under those vendors. 7 different vendors are involved and most of their processes for the transitioned employees is not very pleasant. Many leaders up to directors will not be retained and many have been given early retirement or package options already to go into effect 3rd quarter and after.
This is about to be a very bad time for our onshore Allstaters. I have to be involved heavily in the process then I too am impacted. I already know this. The entire process should all be complete by 2nd quarter to mid 2023.