Arla Foods Consolidated Annual Report 2021
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Arla Foods Consolidated Annual Report 2021 / Environmental, social and governance (ESG) data / Notes
Social figures
2.3 GENDER PAY RATIO
Social figures
2.4 EMPLOYEE TURNOVER
Contents
GAP BETWEEN MALE AND FEMALE SALARY DECREASED
Paying equal salaries for the same job regardless of
gender is a basic requirement for an ethical and
responsible company. At 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.
Gender pay ratio is an indicator of where women are
placed in the company hierarchy. Arla targets complete
equitable treatment between genders, which would be
represented by a gender pay ratio of 1.0. In 2021, the
median male salary at Arla was 3 per cent higher than
the median female salary, a decrease compared to 5
per cent last year.
EMPLOYEE TURNOVER UP DUE TO COVID
Attracting and retaining the right people are imperative
to the success of Arla's business. Employee turnover
shows the fluctuation in the workforce. Arla aim for
a stable turnover and recognise that some turnover is
needed to remain competitive and innovative.
Employee turnover increased to 13 per cent compared
to 10 per cent last year. The development was driven by
an increase in voluntary turnover to 10 per cent from 6
per cent last year. The increase was slightly higher than
the level for previous years, likely impacted by the
Covid-19 situation and the unusually low voluntary
turnover in 2020. The involuntary turnover decreased
slightly to 3 per cent compared to 4 per cent last year.
ESG Table 2.3 Gender pay ratio
Gender pay ratio
2021
2020
2019
2018
ESG Table 2.4 Employee turnover
2021
2020
2019
2018
2017
1.03
1.05
1.05
1.06
Voluntary turnover
Involuntary turnover
Total turnover
10%
6%
8%
8%
8%
3%
4%
4%
4%
3%
13%
10%
12%
12%
11%
G 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 pensions and other benefits are not
included.
0
Uncertainties and estimates
The ESG reporting guidelines issued by CFA Society
Denmark and Nasdaq recommend including the total
workforce as well as bonus and pension in the equation.
However, due to data limitations only the gender pay
ratio for the white-collar workforce is disclosed. It is
estimated that including blue-collar employees in the
gender pay ratio would reduce the gap, as males are
overrepresented in the blue-collar workforce.
G
Accounting policies
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 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).
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