Strategic Human Resource Management -HRM 546 (Section-01)

A case analysis on ‘Learning Opportunities for Employees Are No Accident at Farmers Insurance
Group of Companies”

Submitted to
Dr. Ikramul Hasan
Email: kramul@iub.edu.bd
Independent University, Bangladesh,
School of Business, MBA Program

Prepared by
Ahmed Imtiaz Sobhan, Student ID- 2010510,
Tahera Tasnim, Student ID-1910651
Sadia Afrin, Student ID- 1910708,
Seerat Hassan Ahmed, Student ID- 1710958
Jewel Hossain, Student ID- 1930971
Independent University, Bangladesh,
School of Business, MBA Program
 Abstract

It’s easily understood for a competitive business industry like Insurance training and development
crucial element for business success. As a part of that and their business strategy, Farmers Insurance
Group of Companies encourage training programs that change the behavior of employees and help the
business meet its objectives.

In this purpose they used a blended learning approach of formal and online learning or informal learning
which includes integrated face-to-face instruction, print, online, video, audio, virtual simulations, and
coaching etc. that best suits learner learning style. With the help of technology, training program are
developed in such ways that focus on delivering knowledge and as well as skill development i.e.
instructor-led training.

For new agents, training programs have been revised and included more coaching, performance support
aids, and multimedia methods which are relevant to knowledge and skill of their job.

At the University of Farmers, electronic tablets allows learners to take notes, access websites and
articles, and view videos and instructor to use the record the learners’ practicing skills and then provide
feedback and coaching. It also helps to promote self-paced learning.

Apart from this, Farmers Insurance also support informal learning though the use of e-learning i.e.
virtual classrooms, mobile learning, iFarmers apps , social networks, electronic tablets such as iPads, and
learning simulations.

Key Word: Training and development, informal training, business strategy, e-learning.

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 Background:

Farmers Insurance Group of Companies is serving the best possible service and products since its
establishment in 1928 with an ambition “Be the leader in delivering peace of mind, innovating for
customers whenever and wherever they need us.” It has grown to set up its operation in 50 states with a
large number of employees of 60000 and independent agents. It has been featured in the most prominent
magazines in the United States. Their innovation in products and services has attracted the customers
incrementally which is reflected in the net income of $70.5 million in 2019. In this competitive industry,
as a part of legal requirements and new products, processes and services make training and development
crucial for business success.

Therefore, at Farmers Insurance, they use formal as well as online and informal learning to train their
employees with the use of technology including virtual classrooms, mobile learning virtual simulations,
and coaching which help to deliver knowledge, develop skills and also help the business meet its
objectives. It allows the learners to choose the type of training that they believe best fits their style and
helps in their business. For example, various training method helps farmer to made in claims processing,
ratings ,billing which support their business strategy on the other hand online training and webinars
designed to provide the new knowledge to field managers.

To encourage learning outside of a formal classroom learning, farmers developed virtual classrooms,
mobile learning, social networks, electronic tablets such as iPads, and learning simulations. They also
developed iFarmers app which helps customers to learn about different insurance products and sales
agents in business focused learning. Besides employees can use social networking sites such as Twitter,
Facebook,e-mail, or an RSS feed to participate in their their "Agency Insider" program which is for
sharing knowledge, and providing performance support.

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Problems:

1. Human Interaction with the employees compromised

2. Training evaluation or effectiveness of training is not measured

3. No link between Training & Development created with Performance Appraisal

4. Gap between individual need & functional need observed

5. Long Term development need for employees is not mentioned

6. To develop individual collective process such as: projects, participation, workshop

types of programs are not mentioned apart from Training

Options and Actions:

Actions taken on identified problems are the following:

1. To hear the voice of the employees regarding Training & Development they can run an
open session for employees every week to get their feedback or opinion.
2. They can implement the Kritpatrick’s four layers training evaluation to know the
effectiveness of the training
3. During Annual Performance Appraisal process, they can implement a separate exercise to
capture the need of employees training need
4. To cater the individual need they can run “Individual Development Plan” based on the
employees who are positioned High-High in 9-Box Model. From this plan the
management can jot down the individual need for training purpose.
5. They can open a forum/group in every training program among all the participants to get
their instant feedback.
6. To increase the knowledge of the employees they should emphasis on the cross
functional projects and arrange open forum among participants to share ideas on any
topic

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Conclusion:

The training programs are designed and updated with the pace of technology for which the
customers, agents and employees has found effective and it has displayed in the increasing and
improving of agents’ success, sales goals and in conversion rate of new agents to full time
agents.

Though their training has shown a great impact due its unique blended approach of formal and
informal learning. However, the company could facilitate more informal learning by having the
employees interact and participate more through the training approach. Farmers could develop
more virtual activities that encourage the employees, sales agent to learn on their own time and
pace, such as, online quizzes, games and simulations, online mentoring, podcasts, online
conferences and seminars and discussion assignments with other employees.

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 Questions & Answers

l. Is Farmers' training strategic? Why? What information did you consider in determining
your answer?

Answer: I feel that Farmers Insurance Group of Companies training is strategic because it is
carefully designed and it is aligned with organization’s long term goal to increase the
productivity of farmers and is aligned with the latest technological advancement which has taken
place in the external environment.

The information considered in this case is, employees were learning better virtually and through
a longer period of time, rather than face-to-face in a classroom. As the world is moving towards
high level technology, farmers training has also taken a new turn by incorporating technology in
terms of imparting training. Farmers thought of a brilliant idea of using social media and other
multimedia outlets to help people be more intrigued and focused on learning, as well as being
interested in what they are selling. The program is revised and includes great training. They used
blended learning approach to deliver effective learning, online training and webinars are
designed to offer training, farmers use social networks, virtual classrooms, mobile learning and i-
pad for training purpose. Above all, they made the training fun and technologic for the younger
generations.

2. Does Farmers support informal learning? How? What else could the company do to
facilitate informal learning?

Answer: Farmers supports informal learning such as virtual simulations and coaching. They
expressed how face-to-face interactions and learning was less effective than online. They use
social networks, mobile learning and virtual classrooms to support learning. They use app
through technology to support their Business strategy.. They are quite enthusiastic in terms of
webinars and online training delivered to them. They have created i-Farmers app for customers,

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sales agents and employees. All these informal learning contributed a lot to boost employee
satisfaction.

The company could facilitate more informal learning by having the employees interact and
participate more through the training approach. Farmers could develop more virtual activities
that force the employees to learn on their own time, such as, online quizzes, prizes for highest
score winners, and discussion assignments with other employees.

3. How would Farmers determine if training, instead of some other reason, was responsible
for the failure of new agents?

Answer: By using control techniques, the effectiveness of training can be evaluated. The agent's
performance before training and after training is analysed and the gap is measured. If there is a
significant improvement in the performance of the agents after training then it is successful
otherwise it is a failure.

Farmers could determine if the training were responsible for the failure of new agents because of
their inability to learn virtually. They may be too focused on a certain learning approach that
they are unable to move on to the area of study. Farmers could determine this through the
training program. It could closely examine each individual mobile learning to find out where
they are going wrong in the process. Farmers could then define the issue and come up with a
solution, as to where and why the training was responsible for failing to find new agents. It is
found that the new agents learn easier when the material is relevant to their specific jobs. It
seems to be harder for people to learn every aspect in a short period of time, rather than learning
more about their specific position in a longer period of time.