State Farm is one of the largest insurance agencies in America.
We often think of sales agents when we think of State Farm, but that does not account for even half their employees.
There are 19,000 State Farm agents and about 58,000 total employees.
There are lots of different kinds of jobs, and there should be plenty of room for advancement in a large company like this.
State Farm has the nation’s largest car insurance, property, and home insurance businesses, and they are the sixth-largest life insurance company.
There are many kinds of jobs beyond selling insurance with this company.
Table of Contents
- Pros of working for State Farm
- Cons of working for State Farm
- 16 Pros and Cons of Working for State Farm – Summary Table
- Should you work for State Farm?
Pros of working for State Farm
1. A strong company
State Farm is one of the largest insurance companies in America and leads the nation in a few of the insurance categories.
It has easy name recognition across the world.
The name itself offers employees a bit of prestige if they are in the insurance business.
It is a solid company that is not going to go away any time soon.
The insurance business usually stays strong during hard economic times as well.
2. Signing on bonus
For the last couple of years, State Farm has been offering new employees up to $2,000 in a singing bonus.
This is especially true for sales agents.
The sign-on bonus is applied through the first year of employment.
Jobs are not always easy to get with State Farm, but they do offer incentives to top candidates.
In some areas of the country, that bonus can be even larger.
You don’t get it all at once, but it comes within a year.
3. Additional benefits
State Farm offers employees help with tuition if they are working towards a degree that will help them in the insurance industry.
The company encourages personal and professional development.
There is also continuous training and professional development within the company as well.
There is also a solid package of employee benefits with things like insurance, paid vacation and leave, savings plans, and 401K options.
4. Good pay for most jobs
Compared to the national average of all employees, State Farm pays above average.
A State Farm Insurance Agent can make $60,000 per year and the national average for all workers is about $40,000.
Insurance claims specialists are also above the national average of $60,000.
Office managers and basic sales representatives are also higher than the national average.
There are also regular bonuses and raises that can be earned throughout the year.
5. Helping people
Insurance agents are known for selling and collecting payments from customers.
They are also the ones that are there to help those same customers when a loss is suffered.
Whether this be an individual car accident, or a major hurricane that causes widespread devastation, State Farm insurance agents are there to help people get on their feet again.
You can make a difference in your community with State Farm.
You can get to know a lot of people in your community, and help them plan for emergencies, and then be there with them when emergencies happen.
6. A chance to be creative
The company offers a lot of training, but there are always unique situations that arise that require you to be creative.
You have a lot of freedom to come up with solutions to unique problems clients have.
This can be rewarding as well.
People need help when they are in a crisis, but they also need help in figuring out how to survive a crisis, and you can use your creativity to help them achieve that goal.
Helping people plan for their future can be a rewarding career.
7. Advancement opportunities
There are a lot of different kinds of jobs with a company as big as State Farm.
You could start as a customer service representative, a receptionist, or even a telemarketer, and go as far as you would like.
There are levels of insurance agents from sales to management.
Claims adjusters make the most money below the corporate level.
There is a lot of room to advance and grow with State Farm.
8. Flexible environment
In many of the jobs at State Farm, you are free to set your own hours and there is a lot of flexibility.
You will not be chained to a desk or office.
You are free to find your own solutions to issues as they arise.
Most jobs are considered professional-type jobs, and you can do the job as you see fit in many cases.
This is particularly true for sales agents and professional-level jobs with the company.
Cons of working for State Farm
1. Seeing people suffer loss
While it can be fulfilling to help people when they have a loss by paying an insurance claim, there is a downside as well.
You have to interact with people who have suffered loss and that can be difficult.
You need to have some empathy for others and be able to express that as well.
If you don’t like helping people, you may not like this job.
2. Having to work with the public
Much of insurance involves sales and dealing with people on many different levels.
If you do not enjoy a lot of interaction with people, this may not be a good job for you.
You have to listen to customers and try to find out how to meet their needs.
This takes patience and time.
If you are a people person, you may find being an insurance agent rewarding and inspiring.
If you are not a people person you may find it stressful and depressing.
3. You have to figure it out
The downside of having a lot of flexibility is that you are on your own when problems arise.
You are a professional and are expected to figure things out yourself for the most part.
This is a positive for some people, but it is a negative for others who like a lot of structure in their work.
Clients have unique issues, and it may take time to figure out the best way to help them get what they need.
This is fun for some people and negative for other people.
4. Lower pay
The pay is above average as compared to all workers, but it is somewhat below what other top insurance companies pay.
The lower end of the payscale is lower at State Farm.
The overall average for the company is $40,000.
USAA has the highest overall average at $59,000.
Most top insurance companies are between those extremes, and several are slightly higher than State Farm.
5. Company culture issues
Call centers tend to be rigid places to work, with not much flexibility.
Lower-level jobs can be less fulfilling than the more professional-level jobs with the company.
The lower-level jobs offer lower pay and less flexibility.
The quality culture the company offers at the upper end of the scale does not filter down to the lowest-paid employees.
For the lower-level jobs, the pay is much less and the culture is not as friendly.
6. Management issues
Many insurance agencies are independent and run their operations as they see fit.
This can be a good or bad situation, and there is no uniformity throughout the company.
The local manager can be very good or very bad, especially with the lower level jobs.
Whether you get raises can be based on subjectivity more than the objective results you have delivered.
7. Long hours
While there is some flexibility, there can be long hours for insurance agents.
When there is a major catastrophe, you will have to be out there working with people who have suffered losses for a long time.
You can make a positive difference to these people, but it will take a lot of extra time and effort on your part.
There may be times when it is slow, but you should expect to work long hours at times.
8. Lots of knowledge required
Insurance seems straightforward, but a closer look shows it can be very complex.
You have to know the details of all insurance policies of all kinds, and they are all very detailed.
You have to know the law as it relates to insurance as well as your state.
The company does provide training and information, but you will have to take some time to absorb it all in order to do your job well.
There will be lots of reading and studying to keep up with the latest on this job.
16 Pros and Cons of Working for State Farm – Summary Table
|Pros of working for State Farm||Cons of working for State Farm|
|1. A strong company||1. Seeing people suffer loss|
|2. Signing on bonus||2. Having to work with the public|
|3. Additional benefits||3. You have to figure it out|
|4. Good pay for most jobs||4. Lower pay|
|5. Helping people||5. Company culture issues|
|6. A chance to be creative||6. Management issues|
|7. Advancement opportunities||7. Long hours|
|8. Flexible environment||8. Lots of knowledge required|
Should you work for State Farm?
If you are comfortable working with people, and like solving problems, you might enjoy working for State Farm.
Insurance agents, in particular, have an opportunity to be creative and get to work on their own a lot.
If you like an environment that is not really structured, you might like this type of job.
Lower-level jobs, like call centers, are not as much fun, but can be a decent job for a student, or for a first job.
There are many levels and types of jobs at State Farm.
It is a solid company that pays well, so it would be a good company to grow up with.
You could have a good career working for a company like State Farm.