MANAGING PEOPLE

Learning Opportunities for Employees Are No Accident at Farmers Insurance Group of Companies

Farmers Insurance Group of Companies is the third-largest insurer of auto and homeowners insurance in the United States and also provides other insurance and financial products. Farmers has 60,000 employees and exclusive and independent agents in every one of the 50 states. It processes millions of insurance quotes, new policies, renewals, and bills each year. In the insurance industry, legal requirements and the introduction of new products, processes, and services make training and development critical for business success. At Farmers Insurance, learning professionals are rewarded based on the degree to which training programs change the behavior of employees and help the business meet its objectives. Learning is delivered based on the desired end result. No wonder Farmers has been ranked in the Top 10 of Training magazine's Top 125 for the last four years and will be inducted into the Hall of Fame!

Farmers uses a blended learning approach to deliver effective learning to its multigenerational employees and agents who are located across the U.S. Farmers believes that rather than allowing learners to chose the type of training method that they believe best fits their style, a blended learning approach is more effective. As a result, its training programs integrate face-to-face instruction, print, online, video, audio, virtual simulations, and coaching. Technology is used for delivering knowledge and instructor-led training is used for skill development. In the past five years the amount of learning delivered through instructor-led classroom based training has dropped from 90 to 50%. The other 50% is online or informal learning. For example, Farmers is using various training methods to help its employees cope with the changes made in claims processing, ratings, billing and product systems in support of Farmers business strategy, which emphasizes customer experience, distribution, and product management excellence. For example, field managers were required to complete online training and webinars designed to provide the new knowledge they needed. Then the managers received instructor-led training, videos, and coaching guides. Farmers also revised its training program for new agents as a result of an increased failure rate of new agencies. The revised program includes more coaching, performance support aids, and multimedia methods. It also insures that new agents learn knowledge and skills when they are relevant to their jobs rather than forcing them to learn everything at once and having them frustrated with being unable to recall the information when they need it later. As a result of the program revision, converting new agents to full-time status improved by 12%, sales results exceeded sales goals by 11%, and agency success rates increased 10%.

Recognizing that new technologies are potentially useful for training delivery and instruction, Farmers has started to use virtual classrooms, mobile learning, social networks, electronic tablets such as iPads, and learning simulations. While taking courses at the University of Farmers, learners can use electronic tablets to take notes, access websites and articles, and view videos. The video capabilities of the tablets allow instructors to use them to record the learners' practicing skills and then provide feedback and coaching. Also, the instructors can create learning materials such as iBooks with embedded videos. To encourage learning outside of a formal classroom environment, Farmers developed iFarmers apps for customers, sales agents, and employees. The iFarmers customer app helps customers learn about different insurance products. An iClaims app gives customers access to input and managing their insurance claims. The iAgent app provides business-focused learning for sales agents. Farmers has also been experimenting with social networking for employees to collaborate, create and share knowledge, and to provide performance support. Some training programs are using the social network for collaborative exercises. Farmers' "Agency Insider" program allows learners to specify whether they want to use Twitter, Facebook, e-mail, or an RSS feed.

QUESTIONS

1. Is Farmers' training strategic? Why? What information did you consider in determining your answer? 2. Does Farmers support informal learning? How? What else could the company do to facilitate informal learning? 3. How would Farmers determine if training, instead of some other reason, was responsible for the failure of new agents?.