Our People

Hormel Foods strives to be a company where people aspire to work and never want to leave. We have a tradition of fostering long-term careers that starts with promoting from within and is supported by competitive compensation, benefits, training and a safe work environment.

Through Our Way, we promote an engaging work environment where:

• Continuous improvement and innovation are a way of life;
• All employees trust and respect one another;
• Employees can flourish with fair compensation, equal opportunity, a safe work environment and a balance between work and personal life;
• Teamwork and positive attitudes are commonplace; and
• Everyone maintains a focus on customer and consumer satisfaction.

Employees by Job Type

We had 18,500 employees in fiscal year 2007 and 19,000 employees in fiscal year 2008 at 44 U.S. facilities. Our team consists of full-time and part-time hourly and salaried employees. In fiscal years 2007 and 2008, hourly employees were 85 percent of our team. Salaried employees were 15 percent of our team in fiscal years 2007 and 2008. Among all employees during these fiscal years, 34 percent were covered by collective bargaining agreements. Throughout the year, we supplement our workforce with temporary employees, which averaged 4 percent in 2007 and 2008. Additional information about the demographics of our team is below.

Employee Tenure

As a company, we measure an element of our success on the tenure of our employees. We are honored to report that 54 percent of all employees had five years or more of service at Hormel Foods in fiscal year 2008. Within this group, 15 percent had 20 years of service and 4 percent had 30 or more years of service. This tenure is also relevant for our 31-person officer team with an average of 26 years of service.

Workplace Conduct

We value the individual at Hormel Foods. Our policies protect each employee's right to a workplace where laws are followed and respect is shown. This creates an environment where people want to work and do not want to leave.

Human Rights Statement

Hormel Foods conducts business responsibly and ethically. We respect international human rights principles aimed at promoting and protecting human rights, including the United Nations Universal Declaration of Human Rights.

Fair Employment Practices

Hormel Foods complies with the age limits set forth by local, state and federal laws. We do not hire anyone working at our processing facilities under the age of 18. Our policies state that we do not tolerate child labor or forced labor at our facilities, which includes the use of forced prison labor. We avoid significant risk related to child labor and forced labor through adherence to company policies and employment laws in the United States.

Employee Engagement

Our company believes engaged employees are more productive, committed and conscientious. They tend to draw more satisfaction from their job, which generates a higher level of customer satisfaction. Employee engagement is achieved through communication and ongoing assessments.

The Process and the Results

In order to measure and improve employee engagement, Hormel Foods uses a well-defined employee engagement improvement process. This process, now entering its fifth year, includes an employee survey, group feedback meetings and the development of action plans. The main benefit of this process is to identify and implement changes needed to maintain a highly engaged work environment.

The employee survey starts a new engagement-improvement cycle every two years. A few months after the survey is administered and managers have shared the key survey results with their teams, feedback meetings take place across the company to identify the key opportunities for improvement. Subsequent work sessions generate and use employee feedback and ideas to develop action plans. These action plans can take the form of workgroup or company-wide initiatives.

As a result of the engagement improvement process, leaders are developing a greater appreciation of candid feedback and discussions. Employees are seeing changes to include flexible work arrangement/schedules, improved communication and recognition, enhanced support for career advancement and increased training opportunities. As we continue this process, we will reap the benefits of engagement in more satisfied employees and customers.

The Hormel Foods process will enter its third cycle with another survey scheduled to be administered in April 2009. Both Jennie-O Turkey Store and Diamond Crystal Brands have continued their engagement improvement processes. Dan’s Prize started their first cycle in November 2007.

Information Sharing

Ongoing communication with employees and retirees is a fundamental component of Hormel Foods’ culture. To this end, the company relies upon three primary vehicles for communication — “Xchange,” the company intranet; Inside Hormel Foods, the company magazine; and company Roadshows.

• Xchange — Daily news stories keep this communication tool fresh and employees informed about the latest happenings from around the company. It also offers a platform for employees to access directories, reference policies or benefits information and a variety of software systems needed to perform daily tasks.
• Inside Hormel Foods — A monthly magazine with the latest announcements, awards and news at Hormel Foods’ parent-company and subsidiary facilities. The publication offers a way for employees and retirees to stay informed and connected to the top stories from around the company.
• Roadshows — Annually our chairman of the board, president and chief executive officer and members of our executive management team travel to about one-third of our U.S. manufacturing locations to deliver an update about the company’s performance during the past year. During the event, awards for safety and quality excellence are presented to locations that excelled in these areas, when applicable. In addition, these Roadshows allow employees to ask questions and provide feedback and suggestions on ways to continue improving the company.

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Safety

Hormel Foods is a leader in our industry for employee safety and is known for its award-winning programs. The dedicated corporate safety department develops and administers company-wide safety policies to ensure the safety of each employee and compliance to Occupational Safety and Health Administration (OSHA) programs. This department conducts periodic safety audits to ensure compliance with company safety policies. In addition, each production facility operates with a designated safety manager who works with plant management to guarantee safety policies are implemented and enforced.

Our Safety, Health and Ergonomic Policy stresses our philosophy that safety and ergonomics are a team effort that requires every employee’s participation. Each plant operates with defined safety committees consisting of plant employees and members of management who attend monthly meetings. Safety committees are comprised of more than 2,100 hourly and salaried employees. These committees perform monthly safety audits and ensure corrective actions are implemented. They are also responsible for assisting in the development of the plant’s safety processes.

Safety Statistics

This commitment is evidenced by our injury incident rates being equal to or below the Bureau of Labor Statistics (BLS) industrial average for NAICS 3116 Animal Slaughtering and Processing.

The Total Case Incidence Rate (TCIR) is defined by OSHA as the number of recordable incidents multiplied by 200,000 hours and divided by the total hours worked that year.¹

In 2007, TCIR at Hormel Foods was 7.6 vs. the most recent BLS industry average incident rate of 8.4 for NAICS 3116 Animal Slaughtering and Processing. In 2008, our company-wide TCIR was 6.5 — a decrease of 17 percent from the previous year’s rate.

Days Away from Work Injury and Illness (DAFWII) is when an injury or illness involves one or more days away from work. In 2007, the DAFWII rate at Hormel Foods was 0.8 compared to the most recent BLS industry average of 1.2 — about 33 percent below the industry average. In 2008, our company-wide rate decreased by 25 percent to 0.6.

Days Away, Restricted or Transfer (DART) measures the days the employee has restricted work activity or job transfer, or both. In 2007, our DART rate was 4.6 vs. the industry average of 5.5, which means we had 16 percent fewer days that employees were away from work, had days of restricted work activity or a job transfer compared to the BLS industry figures. In 2008, our rate was 4.1 — an 11 percent improvement from the previous year’s company-wide rate.

¹In the United States, OSHA publishes summary data showing the TCIR for the various industry types.

Ergonomics

Injury prevention is the key focus of our ergonomic program. Hormel Foods voluntarily implemented an ergonomics program in 1987, and today each plant has an active ergonomic committee consisting of plant employees and management. Each ergonomic committee meets on a monthly basis to discuss ergonomic related challenges and to conduct ergonomic job assessments. These efforts have resulted in a year-over-year reduction in our soft-tissue injury incident rate.

Safety Training

Employee safety training is conducted by plant supervisors on a monthly basis and is the key to our successful safety program. Each plant safety manager coordinates monthly safety training for plant supervisors who train their respective employees.

Safety training topics consists of:

• Automated external defibrillator
• Asbestos awareness
• Bloodborne pathogens
• Chemical spill cleanup
• Confined space
• Contractor safety
• Electrical safety
• Emergency action plan - fire/chemical
• Ergonomics
• Eye and face protection
• Fall protection
• Fire protection/extinguisher
• Forklift
• Hazard communication
• HAZWOPER
• Hearing conservation
• Hot work permit
• Inclement weather/tornado
• Lockout
• Personal protective equipment
• Process safety management
• Reach in/machine guarding
• Respiratory protection
• Safety orientation

Safety Excellence Program

Our Safety Excellence Program is designed to promote a safer workplace and increase safety awareness through the recognition of plants that meet or exceed company safety goals. Safety Excellence goals for recordable injury/illness, lost time injury/illness and soft-tissue injury incident rates are reviewed annually and maintained well below the BLS industry average for NAICS 3116 Animal Slaughtering and Processing. Since 1994, facilities compete each year for the designation of Safety Excellence award winner. Despite increasing the criteria for the award, each year the number of facilities to participate has increased. In 2007, 18 of the 39 facilities participating in the program received the highly coveted Safety Excellence trophy. In 2008, 20 of the 43 participating facilities achieved Safety Excellence.

Industry Safety Recognition

Our processing plants annually receive recognition for their outstanding safety performance from the American Meat Institute (AMI). In 2008, 17 locations received an AMI award. Among this group, six plants received the AMI Award of Honor, which is the highest level awarded for outstanding safety performance. The remaining locations received the Award of Merit, Award of Commendation or Award of Certificate. Award levels are based on an application that is reviewed and scored by the National Safety Council.

Minnesota Governor’s Safety Awards

During the 2008 Governor’s Safety Awards luncheon, held in conjunction with the 74th Minnesota Safety and Health Conference, several Hormel Foods locations were recognized for their outstanding 2007 safety performances.

The following locations were presented Governor's Safety Awards:

Award of Honor: Exceptional accomplishment in reduction of injuries and illnesses in the work place.

• Hormel Foods Corporate Office
• Jennie-O Turkey Store Corporate Office

Outstanding Achievement: Continuing improvement and /or a continuing outstanding record.

• Austin Plant
• Lloyd’s Barbeque Company

Meritorious Achievement: Better than average performance in incident rates.

• Jennie-O Turkey Store Benson Avenue Plant
• Jennie-O Turkey Store Willmar Avenue Plant

Nebraska Star Award

During the 2008 Nebraska Safety, Health and Environmental Conference, the Fremont Plant was presented the Star Award for occupational safety excellence by the Nebraska Safety Council.

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Professional Development

Investing in Employees

Professional development involves regular reviews, comprehensive training and opportunities for career enhancement and advancement. At Hormel Foods, continuous improvement and innovation are a way of life. This Our Way principle reminds employees that the company cares about personal development and encourages continuous growth in their career.

Performance Review Program

We understand how important it is for our employees to feel challenged and valued, so we conduct regular performance reviews annually with more than 99 percent of salaried employees, 92 percent of office hourly employees and 47 percent of plant hourly employees. Reviews for salaried and office hourly employees include an assessment of current job performance and a component where the employee and his/her supervisor establish quarterly or annual goals depending on job responsibilities. They also discuss work/life balance, career development, training needs and opportunities, current job performance and satisfaction.

Training

To support our tradition of long-term careers, employees received training applicable to their level of responsibility and expertise throughout their career at Hormel Foods. The total hours spent on training in fiscal years 2007 and 2008 were 259,274 and 325,905, respectively. This equaled about 14 hours of training per employee in fiscal year 2007 and 17 hours of training per employee in fiscal year 2008. The chart below shows an in-depth analysis of training hours per employee group at Hormel Foods.

Hours of training per employee vary across the company because they are based on the areas of knowledge that are determined applicable for each employee to execute his or her daily activities. Some of our training programs include:

• Accountability
• Accounting
• Benefits
• Communication skills
• Computer skills
• Diversity and inclusion
• Executive training
• Food safety
• Interpersonal skills
• Management/leadership
• Negotiation
• Operations
• Reliability/maintenance
• Sales
• Workplace safety
• Six Sigma

Our career development efforts feature training and coaching that facilitates and encourages career enhancement and advancement. We offer educational assistance to reimburse eligible employees for undergraduate, graduate and preparatory course fees.

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Diversity

At Hormel Foods, diversity is defined as respect for, and inclusion of, the unique differences of every individual, which encompasses personal attributes, values and organizational roles. Embracing all of the ways in which we are different — beyond race and gender — fosters innovation and cultivates an environment where people aspire to work and build long-term careers.

Our Chairman of the Board, President and Chief Executive Officer, Jeffrey M Ettinger, has demonstrated his commitment to this focus by including it among the company’s key strategies. We have convened a cross-functional diversity and inclusion council to assist the company in meeting the growing needs of our diverse workforce and to ensure inclusion. We provide formal inclusion training to our managers and are putting the foundation in place to encourage employee networks to form.

Our Board of Directors reflects the diversity of our company. This 13-member board includes four women and three people of color. Company-wide, women represented 35 percent and 34 percent of our workforce in fiscal years 2007 and 2008, respectively. Our minority workforce represented 46 percent and 47 percent in fiscal years 2007 and 2008, respectively.

Supplier Diversity

We continue this philosophy when working with our suppliers. Our policy states that Hormel Foods is committed to providing a respectful and inclusive environment where our employees, customers, consumers and suppliers grow and succeed. Our supplier diversity program provides businesses an opportunity to provide quality product options that meet the company’s growing business needs.

We are committed to providing opportunities to diverse suppliers, such as women-owned and minority-owned businesses, that provide the highest quality materials and services to our internal and external customers on a timely basis at the best economic value. Suppliers can submit their business for consideration at https://suppliers.hormelfoods.com.

In fiscal years 2007 and 2008, we purchased 28 percent and 20 percent of our resources from small businesses, respectively. Of these small businesses, 1 percent were women-owned or minority-owned businesses during each fiscal year.

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Benefits

Our goal is to be a company where people aspire to work and never want to leave. To that end, we offer fair compensation and a benefits program that attracts and retains top talent. Full-time employees are eligible for disability coverage, life insurance, health care programs and retirement provisions. We highlight some of our benefits below.

Compensation

The goal of our pay programs is to attract, retain, motivate and reward highly qualified employees. We aim to maintain internal equity while remaining competitive with the external labor markets. This design ensures consistent and nonbiased pay programs.

Under our merit-based process, managers assign individual performance ratings to employees in conjunction with our formal performance-management process. This involves annual written performance appraisals requiring multiple levels of approval. An employee’s individual performance and relative position to the market determines their merit increase.

Health Care Program

Hormel Foods is proud of the health care benefits we provide full-time employees. Affordable and comprehensive, our health care program offers medical, dental, vision and prescription drug coverage.

Incentive-based Wellness Program

We reward our employees for maintaining a healthy lifestyle through a wellness-incentive program. At our corporate offices, we offer free workout facilities and activities to promote employee wellness, such as health fairs, healthy dining options and group walks.

Resource Service

Employees and their family members are offered access to a free, confidential counseling service. Employees can contact the service for information related to work, home and life issues related to grief and loss, midlife transitions, staying fit after age 50, budgeting, “empty nest” syndrome and retirement planning. The service provides information in many ways — online, via the telephone, through printed materials (tip sheets, booklets, kits) and digital materials (CDs and videos).

Profit Sharing

Hormel Foods established our profit sharing plan in 1938 as a method to return a portion of the company’s profit back to employees either as a payment in cash or as a contribution to the Joint Earning Profit Trust Plan. In fiscal years 2007 and 2008, we shared more than $29 million with our employees.

Flexibility

The company offers flexible work arrangements, which includes flex-time schedules, alternative work schedules, partial work arrangement, telecommuting and a summer hours program. In addition, a phase-back option allows employees to return to gradually working full-time after the birth, adoption or placement of a child in foster care.

Retirement Savings Plans

Hormel Foods employees are eligible for a retirement plan with company contributions. In fiscal year 2008, the company contributed $26 million to its defined contribution plans and maintained its plans on a fully funded basis.

Educational Assistance

Our educational assistance program reimburses eligible employees for undergraduate, graduate and preparatory course fees, books and lab fees.

Adoption Assistance

To assist employees at Hormel Foods who are building a family, the company offers adoption benefits that include financial reimbursement, leave of absence and resource and referral services for up to three adoptions per household during the employee’s tenure with the company.