Report: Northwestern Mutual former, current workers criticize company

Northwestern Mutual is facing criticism regarding its recruitment and treatment of employees following a report by The Guardian that highlighted misleading practices. The newspaper interviewed 21 current and former Northwestern Mutual workers, as well as five individuals who interviewed with the company but did not accept a job offer. Some employees expressed feeling "gaslit" by promises of financial security and described the company culture as "cultlike."

Employee Experiences

Jeremy Biar, a senior at Texas A&M University, shared his experience of starting as an intern with Northwestern Mutual before being hired full-time. He mentioned the financial struggles and sacrifices employees face, such as accumulating debt or living with parents while prioritizing their careers over personal relationships.

A spokesperson from Northwestern Mutual acknowledged the challenges of the profession, emphasizing the need for hard work, grit, and perseverance. The company highlighted the potential rewards for individuals with vision, drive, and an entrepreneurial spirit. Advisors receive extensive training, with 94% reporting personal and professional growth from the internship program.

Recruitment Practices

The Guardian reported that advisors are expected to make 40 calls a day to friends, family, and acquaintances to secure sales leads. The company emphasizes relationship building and referrals as essential components of a successful practice. Critics claim that Northwestern Mutual targets college students and new graduates for sales leads without adequate compensation.

Furthermore, sources revealed that advisors were encouraged to recommend whole life insurance, even to individuals without dependents. This strategy was perceived as targeting young and inexperienced individuals, leading to accusations of "brainwashing tactics." Some policyholders later struggled to afford the premiums, resulting in financial losses.

High Turnover and Earnings Promises

The Guardian highlighted the high turnover rate among Northwestern Mutual advisors, with roughly half leaving within the first year. Contrary to the company's claims, sources estimated that a majority of advisors exit before completing a year, with turnover rates exceeding 90% according to some reports.

Employees shared stories of ambitious earnings projections, with promises of substantial income by a certain age. While the company advertises average first-year earnings of $61,000, critics argue that many advisors face financial challenges due to the commission-based nature of the role.

In conclusion, Northwestern Mutual's recruitment and employee treatment practices have come under scrutiny, raising concerns about transparency, ethics, and the well-being of its workforce. The company's emphasis on hard work and perseverance is juxtaposed with reports of misleading promises and high turnover rates, highlighting the complexities of the financial services industry.