As of 31 December 2013, CNH Industrial had 71,192 employees, an increase of 2,935 over the 68,257 figure at year-end 2012. Part of this increase consisted in the difference between new hires (approximately 8,800) and departures (approximately 7,000) during the year. A change in the scope of operations, on the other hand, accounted for an increase of around 1,100 employees, of whom approximately 300 following the acquisitions of Trucks and Commercial Vehicles dealers in Romania, Portugal and the UK, and about 800 following the insourcing of manufacturing logistics activities at the Sete Lagoas plant (Brazil). The remaining increase over year-end 2012 was mainly ascribable to a growth in permanent and fixed-term workers for manufacturing activities, mainly in Latin America, associated with higher production levels for Agricultural Equipment and Trucks and Commercial Vehicles. Other minor increases included net new hiring for R&D, brand/commercial organizations and various functions in emerging countries.
EMPLOYEES BY REGION AND CATEGORY (1)
(1) Employees are divided into four main categories: hourly, salaried, professional and manager. Professional encompasses all individuals in specialized and managerial roles (including those identified as “professionals” and “professional experts” under the CNH Industrial classification system). Manager refers to individuals in senior management roles (including those identified as “professional masters”,“professional seniors” and “executives” under the CNH Industrial classification system).
The majority of personnel (59%) is employed in EMEA, 17% in NAFTA, 17% in LATAM and 7% in APAC.
The segment with the highest percentage of employees is Agriculture and Construction Equipment accounting for 50% of the Company’s total headcount, followed by Trucks and Commercial Vehicles with 38.3%.
Worldwide, the highest concentration of Company employees is in the 31 to 40 age group; 41.3% of the workforce has been employed for five years or less, while the category of employees with a length of service from six to ten years grew by 21 % in comparison to 2012.
A total of 64.4% of employees has a medium/high level of education (21.3% holds a university degree or equivalent, and 43.1% a high school diploma); the remaining 35.6% completed junior high school/elementary school.
EMPLOYEES BY CONTRACT AND EMPLOYMENT TYPE
FIXED-TERM AND NO-TERM CONTRACTS
CNH INDUSTRIAL WORLDWIDE (%)
A total of 96% of the Company’s current employment contracts are no-term, 99% of which full-time. Fixedterm contracts represent approximately 4% of all contracts. Throughout the year, more than 2,395 contracts were changed into no-term contracts, 10.9% of which refer to female employees. Around 1% of the Company workforce is employed part-time, of which approximately 72% are women (see also pages 214, 217-218).
Agency contracts as at 31 December 2013 were around 3,907, of which 60% in EMEA, 24% in NAFTA, 1% in LATAM and 15% in APAC; this type of contract is stipulated or renewed in relation to specific production requirements and is therefore subject to variations according to business needs.
Approximately 8,753 people were hired in 2013. Most hiring occurred in LATAM for a total of 42% new hires.
As many as 56% of new hires were in the age group up to 30 years. Female employees accounted for 16% of the year’s new hires.
|Employees at 31/12/2012||68,257|
|Δ scope of operation||1,149|
|Employees at 31/12/2013||71,192|
|Employees at 31/12/2011||66,998|
|Δ scope of operation||318|
|Employees at 31/12/2012||68,257|
NEW HIRES BY REGION
NEW HIRES BY AGE GROUP
|Up to 30 years||4,940||56%|
|31 to 40 years||2,447||28%|
|41 to 50 years||947||11%|
|Over 50 years||419||5%|
As regards departures, the highest percentages were reported in EMEA (39%) and LATAM (30%), in the age group up to 30 years. Turnover data is available in the Appendix (see pages 215-216).
Approximately 62% of 2013’s new hires were employed under no-term contracts. In the same period, approximately 7,000 people left the Company, 9% of which were collective redundancies following the reorganization or rationalization of operations, in some instances initiated in previous years. Wherever possible, redundancies were managed through temporary social welfare mechanisms provided for by law and through social plans, aimed at minimizing the impact on employees, established in collaboration with trade unions.
Specifically, 41% of collective redundancies were managed through retirement/early retirement schemes, 11% through voluntary resignations with exit incentives, and the remainder through contract terminations at the initiative of the Company, with payment of severance packages and other supporting measures as per agreements with unions/employee representatives. In 2013, about 200 employees from sites/plants affected by downsizing or restructuring projects, including those launched in previous years, were offered and accepted permanent transfers to other locations, thus limiting the potential impact of collective dismissals. CNH Industrial also provides opportunities for transfers between segments and countries. In 2013, more than 470 CNH Industrial employees transferred between segments, countries or companies within same segments.
The new graduates, among new hires, amounted to 343, a drop compared to the previous year due to the 650 fewer salaried employees hired in 2013.
|New graduates recruited||343||439||484|
Managers of local nationality CNH Industrial encourages the appointment of local managers in each country. However, international assignments may occur if considered as development opportunities for talented individuals, or to bring specific skills and expertise to other countries. When that happens, the assigned manager is required to invest in the selection and development of a local successor. This also ensures that specific skills and competences are successfully transferred across countries.
MANAGERS OF LOCAL NATIONALITY BY REGION
Based on a CNH Industrial worldwide analysis, the figures in EMEA, APAC and NAFTA in 2013 were consistent with the previous year, whereas local managers in LATAM increased by more than 19%. For details, see also page 214.