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
2.1 FULL-TIME EQUIVALENTS
FTEs increased due to insourcing, international expansion and Covid-19
People are Arla's most important asset, so it is
imperative to know how the group deploys these
resources across geographies and time. The number
of employees is measured in full-time equivalents (FTE).
The total number of FTEs increased by 4.4 per cent
compared to last year. A key driver was insourcing and
expansion in international markets, including insourcing
of administrative tasks in UAE and Oman, but also the
full-year effect of the acquisition of the cheese business
in the Middle East from Mondelez International in 2019.
The increase in FTEs in Denmark can be ascribed to the
expansion in Arla Foods Ingredients, while temporary
insourcing of distribution activities increased the
number of FTEs in the UK. During 2020, production
sites, especially in the UK and Sweden, temporarily
ramped up FTEs to ensure stable production despite
the Covid-19 situation.
Over the last five years, the FTE level has been relatively
stable, but shows a shift of FTEs from core European
countries to international markets, especially to MENA.
This supports Arla's strategic plan to expand the share
of business outside Europe, where the outlook for
growth is more promising.
Full-time equivalents split by employee type,
2020
20,020
ESG Table 2.1 Full-time equivalents
2020
2019
2018
2017
2016
Denmark
7,350
7,258
7,264
7,069
6,956
UK
3,761
3,407
3,387
3,477
3,532
Sweden
3,114
2,977
3,001
3,029
3,175
Germany
1,632
1,681
1,759
1,809
1,780
Saudi Arabia
Poland
North America
Netherlands
Finland
Other countries
970
952
965
1,009
895
529
511
463
433
425
479
477
502
496
477
351
339
327
320
313
336
319
325
325
321
1,498
1,253
1,197
1,006
891
Full-time equivalents
20,020
19,174 19,190
18,973
18,765
128
ARLA FOODS ANNUAL REPORT 2020
Full-time equivalents split by employee type,
2019
19,174
Blue-collar employees 64%
White-collar employees 36%
Blue-collar employees 64%
White-collar employees 36%
קוון
Accounting policies
FTEs are defined as the contractual working hours of
an employee compared to a full-time contract in the
same position and country. The full-time equivalent
figure is used to measure the active workforce counted
in full-time positions. An FTE of 1.0 is equivalent to a
full-time worker, while an FTE of 0.5 equals half of the
full workload.
The average FTE figure reported in Note 1.2 in the
consolidated financial statements, and in ESG note 2.1
is calculated as an average figure for each legal entity
during the year based on quarterly measurements
taken at the end of each quarter.
All employees are included in the FTE figure, including
employees who are on permanent and temporary
contracts. Employees on long-term leave, e.g. maternity
leave or long-term sick leave, are excluded.
The majority of employees in production and logistics
are classified as blue-collar employees, while employees
in sales and administrative functions are classified as
white-collar employees. The ratio of white-collar to
blue-collar employees is calculated based on FTEs as
at 31 December.
Employee data is handled centrally in accordance with
GDPR. The FTE figure is reported internally on a
monthly basis. To improve data quality, data is validated
by each legal entity on a quarterly basis through the
financial consolidation system.View entire presentation