State Farm no longer provides electric vehicle (EV) charging stations in parking garages for employees who work at the company’s two Illinois headquarters buildings and plans to do the same nationwide because of fire risk.
NPR Illinois reports that a message sent to company employees stated, “While we understand the impact to those who rely on EV charging, it is our top priority to ensure a safe and secure working environment for our employees. Following an Enterprise Risk Assessment and evaluations conducted by local fire departments and workplace protection in each hub and corporate headquarters, fire risks were identified in the parking garages that cannot be mitigated at this time.” Ev Charging Infrastructure
The change began Oct. 28, according to the article.
“Construction projects are being explored at corporate headquarters and the Illinois Operations Center to install EV chargers in available surface lots where fire safety risks to other vehicles and structures are minimized,” NPR Illinois reports the State Farm message said.
Collision repairers who work on EVs are likely all too familiar with the increased costs of storing the vehicles because of fire risk.
Earlier this year, Sen. Lonnie Paxton (R-District 23), an insurance agent, proposed SB1853 to limit what collision repair shops could charge for multiple standard procedures and storage rates or fees. No votes were made on the bill during the 2024 session.
Sen. George Young (D-District 48) previously said one of his constituents mentioned the bill didn’t address the elevated cost shops have when storing EVs.
“There is a difference in storing an electric vehicle,” Young said. “He felt this bill would limit his ability to recoup costs.”
Sen. Shane Jett (R-District 17) elaborated that damaged EVs carry a risk of fire.
“To take precautions, you’ll have a space allocated for those electric vehicles, and every single space around that has to be empty so that if they catch fire, they don’t catch fire to the facility and every other vehicle around them,” he said.
Paxton said he thought about EV needs when writing the bill. He said the storage price was raised in the bill to partly account for the rising use of EVs in the market.
Allstate also recently announced changes for its employees.
According to Bloomberg, in the coming months, a quarter of the insurance company’s 54,000 corporate employees in cities like Atlanta, Tampa, and Minneapolis will have the option to work in offices booked by the day through a platform called LiquidSpace.
Others will work in traditional leased spaces where desks in cafés, libraries, and event spaces replace traditional office space.
Lauren DeYoung, Allstate’s “workplace futurist,” is leading the transition. She told Bloomberg, “We’re building something new. When I talk to our people, they’re just so surprised we’re doing this, and trying something different.”
According to the article, Allstate cut annual spending on corporate offices by $244 million to $138 million this year, excluding the 7,100 local storefronts that individual agents own and operate.
Bloomberg visited a space rented by Allstate for Minneapolis employees.
“While the employees communing over bagels that morning said they appreciated Allstate’s remote-first policy, which began during the pandemic, they had come to realize some shortcomings, like the lack of office mates to gossip and trade ideas,” the article says.
Employee Sarah Springer told Bloomberg, “You want me to commute to an office? We’re open to that, as long as there’s a reason. If you want me to come in and sit on Zoom all day, there’s no point to that.”
According to 2023 global survey results released by Cushman & Wakefield, 63% of corporate real estate (CRE) “occupiers” plan to reduce their real estate footprint through 2025.
“With office occupancy at half of pre-pandemic levels, most occupiers want to reduce overall footprint, while simultaneously optimizing their current space with amenities and services to increase office usage and experience,” the report states.
The report also says cost, talent, and operational excellence are the top three CRE strategic drivers, with talent at the top in the Americas.
According to a separate survey by Cushman & Wakefield, “Total Workplace Experience per SF (XSF),” workers value choice and control over where and when they work.
“Both types of flexibility drive employee engagement,” Cushman & Wakefield wrote. “Accordingly, CRE executives see flexible work arrangements as a critical way of adding value to their organization’s social pillar goals. Additionally, there is a broad focus on employee wellness through workspace design guidelines that build equity and foster a culture of inclusion. This can be done through several initiatives, including but not limited to: maximizing accessibility for all employees; offering a variety of workspaces that cater to different work styles, cultures, and preferences; and arranging flexibility for when and where people work.”
Allstate’s office in Charlotte, North Carolina, now features a soundproof library where staff can study for their licensing exams, nooks to grab snacks, and open space for bigger meetings, according to the Bloomberg article.
“On one floor, Jason Griffin, a senior manager in the complex-liability determination unit, shows new employees how to assess fault in collision claims,” the article says. “These newbies used to start off remotely but so many struggled and quit that Griffin now requires them to be mostly in the office for the first few months. The in-person training helped slash voluntary turnover in Griffin’s department to 5% from about 35%.”
Griffin told Bloomberg, “The self-starter can work from home but another person might need to be nudged along a little bit.”
Allstate has reduced its footprint from 12 million square feet to 4 million, according to the article.
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