Arla Foods Annual Report 2020
Management Review Our Strategy Our Brands and Commercial Segments
Our Responsibility Our Governance
Our Performance Review Our Consolidated Financial Statements
Our Consolidated Environmental, Social and Governance Data
Social figures
2.3 GENDER PAY RATIO
Social figures
2.4 EMPLOYEE TURNOVER
Gap between male and female salary unchanged
Paying equal salaries for the same job regardless of
gender is a basic requirement for an ethical and
responsible company. In Arla, men and women in the
same or equivalent jobs receive the same level of pay.
This is ensured through well-defined and fixed salary
bands across all job categories.
The primary aim of the gender pay ratio is to ensure
equitable treatment between genders and show where
women are represented in the company hierarchy. In
2020, the median male salary at Arla was 5 per cent
higher than the median female salary, which is
unchanged compared to last year.
Employee turnover decreased
Attracting and retaining the right people are imperative
to the success of Arla's business. Employee turnover
shows the fluctuation in the workforce. Turnover is
broken down by voluntary turnover (i.e. the employee
decides to leave the company) and involuntary turnover
(i.e. the employee is dismissed). With such differentiation,
turnover is an indicator of talent retention at Arla and also
indicates the efficiency of operations.
Employee turnover decreased to 10 per cent compared
to 12 per cent last year. The development was driven by
a decrease in voluntary turnover to 6 per cent, the
lowest level in the last five years, and possibly impacted
by the Covid-19 situation. The involuntary turnover
remained unchanged compared to last year at 4 per cent.
ESG Table 2.3 Gender pay ratio
Gender pay ratio
ESG Table 2.4 Employee turnover
2020
2019
2018
2017
2016
2020
2019
2018
Voluntary turnover
Involuntary turnover
6%
8%
8%
8%
9%
4%
4%
4%
3%
5%
1.05
1.05
1.06
Total turnover
10%
12%
12%
11%
14%
Accounting policies
The gender pay ratio is defined as the median male
salary divided by the median female salary. The salary
used in the calculation includes contractual base
salaries while pension and other benefits are not
included.
♫ Uncertainties and estimates
The ESG reporting guidelines issued by the Danish
Financial Association and Nasdaq, recommends
including the total workforce in the equation. However,
due to data limitations we only disclose the gender pay
ratio for the white-collar workforce. It is estimated that
including blue-collar employees would reduce the gap,
as males are overrepresented in the blue-collar
workforce.
Accounting policies
Employee turnover is calculated as the ratio of total
employees leaving to the total number of employees
in the same period. The figure refers to the number of
employees and not to FTE.
Turnover is calculated for all employees on a perma-
nent contract and includes several reasons for their
departure, such as retirement, dismissal and resignation.
Departures are only included in the calculation from the
month when remuneration is no longer paid (e.g. some
tenured employees may be entitled to remuneration for a
few months after their dismissal).
130 ARLA FOODS ANNUAL REPORT 2020View entire presentation