Our tremendous sales growth allowed us to successfully recruit talented, creative people who have the skills and experience needed to shepherd our company through the next phase of its evolution. We were very deliberate in the process of adding so many people to our community to retain the unique culture of the company. We believe that ensuring that potential employees are aligned with the values of our company is more important than selecting individuals for their work experience and skills. We’ve tripled in size since 2004 which has posed real challenges in keeping our sense of connection to each other, orienting new staff, and building a deep understanding or our mission and vision. Recognizing this, the HR team responded by focusing our Community Cultivation specialist on our internal community. This position is now dedicated to ensuring the organization effectively creates the kinds of experiences, celebrations and events that emphasize our values and culture throughout the year.

In addition, the HR team redesigned our comprehensive orientation to give new employees greater exposure to the company’s mission and global imperatives. The evolving “on-boarding” process consists of a broad range of experiences that continue throughout an employee’s first year and include the company retreat, education on our brand, the holiday party, shareholder meetings, and, in 2009, plans to visit one of our manufacturing partners and retailers. All new employees spend a day with our own Inspired Protagonist, Jeffrey Hollender, who tells the story of our history, the evolution of our global imperatives and explores the challenges of practicing corporate responsibility. Additional initiatives such as our internal website, a more formal employee recognition program, and an expanded employee volunteer program will deepen our connections to each other.

The Numbers: We added 28 new positions and filled four replacements bringing our total size to 96 people, a 41% increase. In addition, we focused efforts to expand our influence in the local community by sponsoring eight interns. At the end of 2008, the community consisted of 93 full-time and three part-time employees. Additional employees took advantage of flexible work arrangements to work part time for periods of time during the year. The company’s total payroll (calculated as total compensation, taxes, and benefits) increased by 29% over the past year from $9.1 million to $11.7 million.

The company’s overall turnover rate of 4% is well below industry average. Departures in 2008 consisted of four employees (one voluntarily, three involuntarily). While the number of departures was the same in each of the previous two years, overall turnover, in light of our double-digit growth, continues to drop as a percentage of our total community. We believe this is due to increased emphasis on our recruiting and selection processes and the continued focus on establishing valued relationships with our community members.

Diversity: The organization does not overtly track a range of diverse employee characteristics though the company does maintain records on both gender and age. A review of our community shows our gender equity to be in balance with roughly equal numbers of men (47%) and women (53%). Our equity relating to age is also well distributed with 54% of employees in the over 40 category and 46% under 40. We have an opportunity to improve our gender equity balance in the Senior Management level of the company. Currently, we have two female vice presidents and 11 male vice presidents, three of whom were added in 2008. However, broadening the definition of senior management to include vice presidents, managers and directors, results in 11 females and 16 males.

While we do not require our employees to declare their ethnicity, we know that our work force reflects the relatively homogeneous racial background found in the State of Vermont. We did not institute proactive efforts to promote diversity this past year. However, we are engaging a consultant in 2009 to better understand how we can reach out in a more purposeful way to organizations that promote people of color to ensure that a diverse population is encouraged to seek positions within our company.

Compensation & benefits: We continue to provide a robust and competitive compensation and benefits package to every member of the organization. Each year we carefully review and evaluate our offerings to ensure we are equitably sharing the value created by the organization in promoting the financial prosperity, health and well-being of everyone in the community. This year’s changes included a substantially upgraded dental benefit and a pilot sabbatical program that aligns with our belief in education, service to the earth, and personal fulfillment.