Offering competitive wages and benefits is key to attracting and retaining top talent.
We work to ensure that team members receive fair compensation commensurate to their experience and skills, as well as competitive compensation within local labor markets. As a result, our compensation program varies by market and by position, allowing us to provide a competitive total rewards package.
Many of our team members are compensated at an hourly rate for production or maintenance work in our processing plants. We’ve made improvements in pay and benefits while also creating new employee relations enhancements that differentiate us from the competition and align with our effort to create the most desirable workplace possible. Our compensation department regularly conducts wage surveys and reviews cost-of-living indicators and community norms. In FY2019, the average hourly pay rate for our U.S. team members was $15.77.
We are continuously researching and developing driver-focused pay programs to grow and develop our fleet, as well as combating the driver shortage impacting the industry. We utilize various pay programs to incentivize our drivers to optimize their mileage and stay safe on the roads.
In accordance with a new Securities and Exchange Commission rule, Tyson Foods discloses the ratio of our CEO’s annual total compensation for the fiscal year to the median of the annual total compensation of U.S. team members. In FY2019, the ratio of total annual compensation for President and CEO Noel W. White to the median amount for U.S. team members was approximately 283:1. Because the SEC’s rules for calculating this ratio allow companies to adopt a variety of methodologies, apply certain exclusions, and make reasonable estimates and assumptions, the pay ratio reported by other companies may not be comparable to our pay ratio.
We are dedicated to providing our team members and their families with affordable health, life, dental, vision and prescription drug benefits. In fact, we require all regular, full-time team members who have completed 59 days of employment to have health care coverage through either the company-sponsored health plan or through a family member’s plan. This means that 100 percent of our eligible team members have access to health care coverage.
Other benefits include paid vacations and holidays, eligibility to participate in a 401(k) retirement savings program, an employee stock purchase program, short- and long-term disability coverage and educational assistance. We also offer an employee assistance program through which team members can speak confidentially with a licensed professional counselor who can provide short-term help with concerns that may impact mental well-being, such as addiction, anxiety disorders, depression, stress and other emotional health issues. This program is offered at no cost to eligible team members, their spouses, dependent children, parents and parents- in-law. In FY2020, we will invest in bariatric coverage through a partnership with BARInet Preferred Provider Network, which covers weight loss procedures for qualified team members and spouses.
Other support for team members and their families includes a program through Rethink for families covered by the Tyson Group Health Plan who are raising children with learning or behavior challenges. We offer paid time off for both mothers and fathers, as well as adoptive parents, and cover certain fertility expenses through Progyny and coverage for Applied Behavior Analysis (ABA) for Autism Spectrum Disorder.
Team Member Benefits
$5.5 Billion U.S. Payroll
$719 Million Benefits cost for U.S. operations
$15.77 Average hourly pay rate for U.S. hourly team members
$970,000 Educational assistance provided to team members
Over the past few years, we have also increased efforts to engage team members and their covered dependents to improve their health and well-being. We are trying to address this issue creatively with the services and support programs we provide. These include telemedicine, biometric screenings, postcards from vendors outlining health and well-being programs, outreach from third-party administrators regarding programs and how to reduce ER services, and other segmented communication efforts. In 2020, Tyson Foods will embark on a series of “Test and Learn” health and wellness pilots aimed at improving health outcomes. We will build on our successful We Care program as a platform to drive team members’ and their families’ understanding of health and wellness issues. This is a priority for us as we continue to strive to be the employer of choice by strengthening our relationships with our team members and their families.
Learn more about a career at Tyson Foods.
Team Members Eligible for Benefit by Employment Status1
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|Company-paid accidental death and dismemberment plan|
|Company-paid life insurance|
|Bereavement pay, paid sick days, jury duty pay and military pay1|
|Educational assistance program (employees only)|
|Flexible spending accounts (e.g., health care and child care)|
|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 disability2|
|Long-term incentives (LTI) (only offered to salaried team members at certain grade levels)|
|Stock purchase plan|
|Vacation days and paid holidays3|
|Voluntary accidental death and dismemberment plan|
|Voluntary life insurance plan|
|Voluntary critical illness, accident and whole life coverage|
|$0 generics for certain maintenance medications|
1These benefits are provided to our U.S. team members including U.S. Cobb-Vantress. It does not cover International team members.
2Unless 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.
3We do offer paid vacation time, pay for recognized holidays and sick pay in locations where required by law. Additionally, we are currently testing various delivery systems for paid time off such as taking vacation time in increments less than the traditional day at a time. We believe our investment in Upward Academy and addressing financial literacy gaps with our workforce will better enable our team members to understand and manage a paid time off system in a manner that ensures wage protection.