Healthier Workplace

Our success depends on all of us working as a team, so we call our employees team members. Team members enjoy many rights, benefits, and responsibilities at our company, such as a safe workplace, freedom from discrimination and retaliation, and compensation for work performed.

Our talent strategy is to attract, grow, reward, and retain the best talent because team members are the heart of our company and its success, and culture is the connecting thread that drives our talent strategy. Our culture is rooted in our Core Values, which are brought to life each day through our 5Cs team behaviors (Caring, Candor, Creativity, Collaboration, and Commitment).

We’ve always been committed to supporting our employees and have sound workplace practices in place, but also want to do better. That’s why we’re taking steps that include expanding training, improving workplace safety and compensation, increasing transparency and helping workers with life skills.

Improving Workplace Safety

In October 2015, we launched a nine-plant pilot project designed to improve workplace safety communication, awareness, operational practices, and provide more detailed data about safety.

The results have been positive, and we have transitioned from a pilot making this platform our safety foundation. We've expanded the number of plant locations in the program to 50, with the expectation that all Tyson Foods' facilities will complete the program.

Our safety foundation emphasizes:

  • The identification and collection of indicators to assess the probability of an incident occurring
  • Using precursors, or leading indicators, identified during the risk assessment to prevent injuries
  • Reviewing current processes and identifying opportunities to prevent injuries through process design
  • Changing team member behavior through coaching and mentoring
Safety Performance
  • 19.4% Reduction in Incident Rate

  • In Fiscal 2016, we reduced our Total OSHA Recordable Incident Rate by 19.4%, compared to Fiscal 2015.

To assess progress on our aspiration of zero work-related injuries, we measure our health and safety performance using traditional Occupational Safety and Health Administration’s (OSHA) incident calculations. We're committed to a 15% year-over-year reduction in our Total OSHA Recordable Incident Rate. We are pleased with our 19.4% in 2016, which accounts for all Tyson Foods' locations, including Hillshire Brands locations. Fiscal 2015 was the transition year to incorporate Hillshire locations into Tyson Foods' OSHA rate data, which is shown. We did not incur any workplace fatalities in Fiscal 2016.

Safety at Tyson Foods (including Hillshire)
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Lost Time Incident Rate1 1.46 1.44 1.41 1.20 1.02 0.87 0.87 0.85
Total Recordable Incident Rate2 10.52 10.60 10.01 9.85 9.57 8.59 8.16* 6.58
Days Away, Restricted, and Transfer Rate3 7.01 7.30 7.00 6.71 6.62 5.75 5.37 4.99
*FY15 Total Recordable Incident Rate adjusted from 7.83 to 8.16 to reflect an increase in hearing loss cases related to the conversion of data to a new hearing test vendor.
1Number of work-related injury and illnesses that result in one or more days away from work per 100 team members.
2Number of work-related injury and illnesses per 100 team members.
3Number of work-related injuries and illnesses resulting in a team member missing work, having restricted work activity, or being transferred from their regular work assignment per 100 team members.
Looking Ahead

In fiscal 2017, we will continue building upon the foundation created through the Safety Process Improvement Plan, focusing on three key areas:

  • Leveraging insights gained from our hourly team member interactions
  • A new software system producing real-time data to all levels in the organization and improved indicators leading and lagging
  • Effective communication enterprise-wide through alerts and lessons learned
  • Reducing Workplace Injuries and Illnesses

  • In February 2017, we announced a goal of reducing workplace injuries and illnesses by 15-percent year-over-year.

Our Team Members and Hiring the Best

Inclusion will continue to unlock the potential of our collectively unique and powerful team. Through our policies and practices, we strive to foster an inclusive workplace and community because we know it takes the skills, thoughts, backgrounds, and talents of all our 114,000 team members to contribute to the collective success of our company.

As a Tyson Foods family, we embrace all of our team members regardless of race, color, national origin, religion, retaliation, age, disability, genetics information, sex (including pregnancy), sexual orientation, gender identity, veteran status, or any other protected status.

  • 114,000

  • Total Workforce

U.S. vs. International Team Members

U.S./Domestic Employees Only as of October 10, 2016.

Full-Time vs. Part-Time Team Members*

*U.S./Domestic Employees Only as of October 10, 2016.

Salaried vs. Hourly Team Members*

*U.S./Domestic Employees Only as of October 10, 2016.

Team Member Age*

*U.S./Domestic Employees Only as of October 10, 2016.

  • 64%

  • Retention Rate for U.S. Team Members in Fiscal Year 2016.

  • 10% Improvement Goal

  • In April 2017, made a commitment to a goal of zero turnover; striving for a 10% year-over-year improvement company-wide in team member retention.

  • 50%

  • Half of our Team Members have five or more years of experience. Of those, 25 percent have 20 or more years and nearly eight percent of our team members have 30 or more years of service.

Hiring the Best

We're committed to building a talent-rich organization to ensure Tyson Foods is a talent magnet. As an equal opportunity employer, we maintain and administer policies and practices that ensure our compliance with federal, state, and local employment laws. We partner with several agencies, including local job services, and host numerous job fairs throughout the year to attract and recruit the most qualified and diverse candidates with the education, skills, and experience that align with both the current and future needs of our company. Below are a few highlights of those efforts.

  • We use our internal talent acquisition team, external recruiting vendors such as Direct Employers, and a network of more than 2,000 on-line job boards to attract qualified and diverse talent, both at the local and national level.
  • In Fiscal 2016, we hired 1,361 veteran and military spouses. We focused on military recruiting through our Camo to Khaki program and attended 20 military recruiting fairs to hire transitioning service members and veterans.
  • We are actively engaged in college recruiting and attended 60 campus-related events in 2016. Diversity recruiting continues to be a prime focus area, where we led recruiting efforts at 11 diversity-focused Historically Black Colleges and Universities and the Hispanic Association of Colleges and Universities.
  • Focusing on inclusion, we attended our first Lesbian, Gay, Bisexual, and Transgender (LGBT) recruiting fair in partnership with our PRIDE business resource group.
  • Our hiring of Arkansans with disabilities in Fiscal 2016 earned us the Distinguished Business Award from the Arkansas Lt. Governor as a model employer for valuing diversity and fostering a work environment to advance opportunities for Arkansans with disabilities. These recruiting efforts are paired with annual training from the Arkansas Department of Rehabilitation Services.

Find a career opportunity with us and read our Equal Opportunity and Affirmative Action statement.

Human Rights and Labor Relations

Our human rights practices are grounded in our Core Values, Code of Conduct, and Team Member Bill of Rights. These documents outline the many rights, benefits, and responsibilities enjoyed by our team members. Our programs and policies support the principles contained within the United Nation’s Universal Declaration of Human Rights and the International Labor Organization Fundamental Principles and Labor Standards. These rights are bolstered by the Ethics Help Line, annual Compliance Training, and the Social Compliance program.

Ethics Help Line

We are committed to “Doing What’s Right”. This isn’t just a phrase for us, it's how we operate and conduct our business on a day-to-day basis. Team Members are actively encouraged to ask questions if uncertain about a situation and are obligated to report suspected violations of our Code of Conduct or the law. Various channels of reporting are provided to ensure those asking questions, raising complaints, or reporting suspected violations are comfortable with the process.

  • Methods of Reporting Suspected Violation of the law or our Code of Conduct

    • Speaking with a supervisor or member of local management
    • Speaking with the local human resources representative
    • Contacting the human resources director: hr@tyson.com
    • Contacting the Corporate ethics and compliance department: ethics@tyson.com
    • Submitting complaints via an online Ethics Web Line: www.telltysonfirst.com
    • Using the Ethics Help Line: 1-888-301-7304

Use of the Ethics Help Line is always an option and actively encouraged for those who:

  • Feel uncomfortable reporting to local management or human resources
  • Believe concerns raised locally are not being addressed
  • Would like to remain anonymous

Services in multiple languages are provided, and it's available 24 hours a day, seven days a week by phone or the Internet. Calls are answered by trained operators, are not recorded, and details of the call are sent directly to the corporate ethics and compliance department. Both call and web-based allegations may be placed confidentially and anonymously.

Many anonymous reporting systems either limit the types of issues that may be reported (i.e., “only complaints involving financial impropriety or retaliation”), and/or refer matters for investigation with no method of ensuring completion. The framework supporting the Ethics Help Line has no such parameters or limitations.

Communication and training regarding use of the Ethics Help Line is addressed during orientation for new team members and is reinforced through annual training. Posters displaying the means of contact for the Ethics Help Line are prominently displayed throughout all company facilities.

The Ethics Help Line received 3,840 calls during Fiscal 2016 or, on a per capita basis, 3.37 calls per 100 Team Members. Of the total reports, 76.5 percent were unsubstantiated following investigation. While the option to report anonymously is always available, 66 percent of those making reports in Fiscal 2016 chose to provide contact information. In comparison, data provided by a reputable benchmarking report shows that, on average, only 42 percent of those who contact a company hotline provide contact information. This volume, combined with callers’ willingness to provide contact information, shows that our Team Members know how to use the process and are not hesitant to do so. This result is consistent with our dedication to maintaining a workplace where we can all ask questions and raise concerns without fear of retaliation.

Complaint Areas (%) FY16

The availability of the Ethics Help Line creates an atmosphere in which all are free to report complaints or concerns of any type, with an understanding that the issue(s) will be addressed and appropriate actions taken. This collaborative process ensures Team Members’ voices are heard and that we are committed to “Doing What’s Right”.

We require all of our team members and directors to participate in annual compliance training on topics including our Code of Conduct and various laws and policies. This training ensures our team members and directors understand our policies prohibit any kind of illegal or unethical behavior and their obligation to report real or suspected violations promptly. Internal reporting avenues include our human resources professionals, any member of management, the Employment Compliance Department, and the Ethics Help Line.

Labor Relations

We respect each team member’s legal right to organize without fear of retaliation, repression, or any other form of discrimination.

  • As of October 1, 2016, approximately 29,000 team members in the U.S. were subject to collective bargaining agreements, with approximately 43 percent of those team members at locations either under negotiation for contract renewal or included in agreements expiring in fiscal 2017.
  • Approximately 4,000 team members in foreign countries were also subject to collective bargaining agreements during that time.
  • There were zero lost workdays related to disputes, strikes, or lockouts.
Social Compliance Program

Our Social Compliance Program allows us to be more proactive in our social compliance efforts. Our goal is to provide our customers transparency into our workplace conditions so they have a reasonable assurance of our commitment to social responsibility.

Sedex Logo
  • Maintain a Social Compliance Committee (SCC) to provide oversight
  • Respond to all self-assessment questionnaires from one central department, in consultation with the committee
  • Maintain membership in Sedex, an external customer-supplier data exchange dedicated to empowering responsible supply chains
  • Use a reputable third-party firm to provide audit services

A third-party firm audits approximately 25 of our production facilities per year. The auditors use Workplace Conditions Assessment criteria to verify our adherence to social compliance standards. We believe our comprehensive audit program is efficient and effective for us and our customers. On request, we share the summary audit reports for each production facility with customers and post the social compliance achievement awards on our website.

Compensation and Benefits

  • $4.6 Billion

  • U.S. Payroll

We share our success with our team members, and we consider our compensation and benefits package to be one of the best in the industry. We believe team member compensation should be commensurate with performance. Compensation, recognition, and development are all important parts of the value our team members derive as employees.

  • $13.73

  • Average Hourly Pay Rate for U.S. team members

  • $1,013,921

  • Educational assistance provided to team members

Benefits

We’re also committed to partnering with our team members to help them become better health-care consumers. Providing affordable health, life, dental, vision, and prescription drug benefits to our team members and their families is an important part of that partnership. In 2016, we announced an array of new benefit offerings and improvements to benefits that are available to team members in calendar year 2017.

  • $546,140,434

  • Benefits Cost for U.S. Operations

Below is a table detailing the benefits offered to our team members by employment status in 2016.

Team Member Benefits
Team Members Eligible for Benefit by Employment Status
Benefit Temporary Part-Time Full-Time Hourly Full-Time Management Non-Exempt Full-Time Salaried Full-Time Management Support
Company paid accidental death and dismemberment plan
Company paid life insurance
Bereavement pay, paid sick days, jury duty pay, and military pay*
Chaplaincy program
Educational assistance program (employees only)
Flexible spending accounts (e.g. healthcare and childcare)
Free diabetic test strips through mail order
Free medical expert opinion program
Free weight management program
Free online health risk assessment and wellness portal
Free pregnancy support program
Full service credit union
Long-term care insurance
Medical, dental, vision, and prescription medication coverage
Merchant discount/computer purchase program
Non-tobacco use premium incentive and free tobacco cessation program
Paid maternity leave
Product discounts through company-owned stores
Retirement Savings Plan (401k)
Short-term (company paid) and long-term disability
Stock options (only offered to salaried team members at certain grade levels)
Stock Purchase Plan
Vacation days and paid holidays
Voluntary accidental death and dismemberment plan
Voluntary life insurance plan
Voluntary Critical Illness, Accident and Whole Life coverage
$0 generics for certain maintenance medications
*Unless required by law, as negotiated in a collective bargaining agreement, or as specified in pre-existing company policy, hourly workers do not receive paid sick days. However, the company does pay short-term disability for up to 13 weeks (after a five-day waiting period) and also offers long-term disability coverage at a competitive group rate. It provides 60% of their earnings tax free for up to 10 years. Relocation assistance is also provided for some positions.
Our Chaplaincy Program

Being faith-friendly is a part of our culture. To be faith-friendly means welcoming team members from all faith traditions and world views and treating each in a respectful manner. We strive to be faith-friendly by respecting and acknowledging all faiths in a manner that is respectful of customs, traditions and beliefs. At the heart of this commitment is a profound respect for our culture that centers on the idea that faith and traditions enrich the workplace. Currently, more than 95 chaplains provide compassionate pastoral care to team members and their families, no matter what their religious affiliations or beliefs might be.

Inclusion, Diversity, and Development

We are committed to maintaining a culture that fosters inclusion and diversity. We've made great strides in the integration of our inclusion and diversity strategy, including a relaunch of the team member on-boarding experience to make the process more inclusive and a revamp of our talent management strategy.

On-boarding Process Improvements

A key change in our on-boarding process was to open the opportunity to a much broader audience of team members.

On day one of employment, through our ENGAGE experience, we provide all new management and management support team members a three-hour orientation to the company. This orientation includes a company overview and information about the benefits we offer and the company's ethics and compliance requirements. Team members working in our production plants participate in a similar orientation, with an added emphasis on workplace safety.

After the initial orientation program, the on-boarding experience is comprised of six one-hour sessions that are offered twice a year. All recently hired management and management support team members are eligible to participate. The program is designed to increase inclusion by cultivating a sense of belonging through a greater understanding of our culture and our business. The program also provides new team members a chance to build relationships with other team members across the company. In addition, our Business Resource Group (BRG) leaders open and close these sessions as a way to provide information about the company's BRGs and to invite the new team members to join.

  Best Places for LGBT to Work

A key accomplishment in 2016 included recognition as Best Place to Work for LGBT Equality by the Human Rights Campaign Foundation’s 2017 Corporate Equality Index.

A snapshot of the ethnicity of our U.S. workforce is presented in the table below.

2016 Employee Diversity Executives Hourly Employees Salaried Employees Company-wide
Asian 1.4% 12.3% 2.6% 11.2%
Black or African American 2.3% 25.7% 10.1% 23.8%
Hispanic or Latino 2.9% 30.4% 11.4% 28.2%
American Indian or Alaskan Native 1.3% 0.9% 0.9% 0.9%
Native Hawaiian or Pacific Islander —% 1.8% 0.1% 0.6%
Two or more races 0.3% 0.6% 0.6% 0.6%
White 91.8% 28.3% 74.3% 33.7%
Business Resource Groups

We have five Business Resource Groups (BRGs) including Leaders of Tomorrow (Young Professionals), Multicultural, Pride Network, Veteran’s, and Women’s BRGs that provide business impact, community outreach, and TEAM Member support and development through various activities at our Chicago, Dakota Dunes, and Springdale locations.

Pride Parade BRG

Our PRIDE BRG participated in the annual Chicago Pride Parade in June 2016.

  • Diversity at Tyson Foods in 2016

    • Females represented nearly 39 percent of our workforce.
    • Ethic minority Team Members represented 66 percent of our workforce.
    • Of our Board of Directors, 78 percent were male and 22 percent were female. Additionally, all nine were over the age of 50.
    • Of the nine members serving on our Board of Directors, two were women and one a minority.
Development

In support of our talent-strategy objectives of zero talent outages and succession-versus-replacement, we focus on building capabilities of our team members to keep pace with the emerging needs of our customers and consumers. Whether for new-hire on-boarding or ongoing individual and/or team development, we provide many opportunities to ensure team member engagement, career development, and growth.

We offer a robust performance-management process focused on collaboration and engagement, which we believe are critical to our continued success. Our process includes cascaded goal setting, cross-functional feedback, growth and development planning, and Mid-Year and Year-End reviews.

More than 15,000 Management and Management Support (4,553 team members in corporate roles and over 10,855 in field and plant-based roles) team members participated in the annual Mid-Year and Year-End performance review process to measure individual success against the “What” (business results) and the “Why” (demonstration of our 5C team behaviors).