Innovative HR Practices at IKEA


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This presentation sums up the numerous, but not all, innovative Human Resource practices that are being followed by IKEA to attain & retain the best talent in the industry.

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  • FORTUNE’s “100 Best Companies to Work For” list (three consecutive years)-Working Mother magazine’s annual list of the “100 Best Companies for Working Mothers” (four consecutive years) -Training magazine’s annual “Top 100” ranking of companies that excel at human capital development (four consecutive years)-Ranked 20th in 'The World’s Most Attractive Employers 2011' in the UniversumAwards,an employer branding event
  • Innovative HR Practices at IKEA

    1. 1. Presentation by Group 4, Section CAditya | Devanand | Jashanjot | Jharana |Krishna | Pratheek | Piyush
    2. 2. IKEA - An Introduction Has branches in around 41 countries A Sweden based retail chain which deals in furniture and house decor FORTUNE’s “100 Best Companies items to Work For” list (three consecutive years) Working Mother magazine’s Training magazine’s annual “Top annual list of the “100 Best 100” ranking of companies that Companies for Working excel at human capital Mothers” (four consecutive development (four consecutive years) years) Ranked 20th in The World’s Most Attractive Employers 2011 in the Universum Awards, an employer branding event
    3. 3. Attracting TalentSnippet from the Job description for a team leader • Few important insights that can be drawn from the job descriptionCome be Yourself with Us. are:ABOUT THE JOB As goods flow team leader you support your manager in leading your team in the co-ordination andoptimisation of the goods flow operations under your control. This important role contributes to achieving the agreed – By emphasizing co-worker, it isavailability of products to IKEA customers at the lowest possible costs. The position is ideally suited to a person whoenjoys quick decision-making and solving daily work issues while on the go. emphasizing equality in termsYOUR ASSIGNMENT Your tasks will include: of how one should treat fellow employees planning, organising and monitoring the flow of goods within your area of responsibility in the store, i.e. from goods receiving to sales locations for replenishment so that sufficient stock is available to meet the needs of – About the job, “at the lowest customers. cost” emphasizes the core DNA working actively to improve productivity through efficient resource planning, including managing sickness leave, staff allocation, flexible working and efficient goods flow operations. of the organization i.e. creating providing input to your manager on logistics capacity requirements in your area of responsibility and the value by incrementally reducing creation of a business plan and goods flow action plans. empowering your team of co-workers by delegating responsibility to help each person grow and cost points develop, according to their individual ability and experience. working closely with your merchandising partners in the store commercial team to implement an efficient and – “Quick decision making” and successful goods flow process that leads to more sales. “Solving problem while on theYOUR PROFILE Your knowledge, skills and experience include: go” creates a vivid picture of dynamic work environment at You are self-reliant and motivated with a proven ability to work as part of a larger team. IKEA You are able to set expectations for others and provide clear direction and follow up. You can prioritise and organise your work and the work of others to make the most efficient use of time – By highlighting “improving the available. You have a keen interest in retailing and logistics as well as experience of working in a fast-paced environment. productivity”, Task portion You can adjust your style of communication to get a message across to the receiver. reemphasizes that cost- consciousness is highly valuedGROWING TOGETHER IKEA offers an exciting and empowering work environment in a global marketplace. And as theworld’s leader at life at home, you have exceptional opportunities to grow and develop together with us. at IKEA
    4. 4. Recruitment and Selection• Value Driven – IKEA is a value driven company which espouses simplicity, teamwork, communicative forthrightness and urgency – Core values of IKEA are cost consciousness, dynamism, flexibility and employee empowerment – IKEA designs advertising campaigns which emphasizes these values – IKEA is also transparent in communicating these essential values via its “Jobs at IKEA” webpage• “Assemble your future” – Recruitment of around 300 people for one of IKEA’s Australia units – They put in Ad “Assemble your future” leaflets in the furniture boxes that they sold – A very cost effective campaign, which directly harnessed its customer base – This campaign generated around ~5000 responses and worked out successfully for IKEA
    5. 5. Increasing Employee’s KSA• Training – Co-workers who have mastered their current job are encouraged to seek new challenges – Job enlargement/enrichment, changing the Job scope/location – Annual development talk to discuss and outline career paths – On-the-job training complemented by traditional classroom courses – A wide range of web-based training activities for all aspects of IKEA operations• Selection – Emphasis on value-fit as its selection criteria – IKEA provides a co-worker as a mentor for new co-worker for some time• Compensation – IKEA has developed global, mandatory guidelines for compensation and benefits – Each country must offer the same benefit structure for all co-workers in the country – Benefits are to be based on core IKEA values as well as local laws and market conditions
    6. 6. Motivation enhancing HRM practices• Internal Promotion – One year development adventure programme that any co-worker with potential can apply for in the beginning of their career – The participants travel to two different countries for six months each to work in different fields to what they are used to – These Co-workers are absorbed to take leadership responsibility, forming the pool of highly skilled IKEA managers of the future• Incentive System – Line management takes a direct role in the design and determination of reward policy in IKEA – Emphasis on designing reward systems that best fits the local context• Encouraging Diversity in the workplace – About 40% of the Co-Workers are women with a great mix of nationalities – IKEA’s purchasing and retail operations in 41 different countries are led by country managers of 14 different nationalities
    7. 7. Empowerment enhancing HRM practices • Grievance Procedure – “VOICE” : IKEA uses a company-wide survey called “VOICE” to monitor how co-workers view various aspects of their employment at IKEA – The “IKEA leadership Index” quantifies how co-workers view their managers • Flexi Time – One of the best work practices espoused at IKEA is flexible timing as per co-workers need • Keeping Co-workers Informed – IKEA Intranet is complemented by a variety of different channels such as regular meetings, easily accessible notice boards, newsletters and closed-circuit radio – The global co-worker Magazine Readme which is distributed to all co-workers is translated into 19 languages – IKEA has web-enabled services on the Internet to better reach co-workers with limited computer access at work and better access outside work• Supporting Work-Life Balance – Co-workers of different ages are at different stages of their lives and are delegated different activities as per their convenience
    8. 8. IWAY Standard• It is a code of conduct that defines the guiding principles that governs the organisation• Prevention of corruption – The company has established the IKEA Corruption Prevention Policy and The IKEA Rules on Prevention of Corruption for its co-workers and external business partners• Dialogue with Unions – IKEA supports each co-worker’s right to freedom of association and does not express any preference within the institutional and recognized co-worker associations – IKEA respect the rights of its co-workers to join, form or not to join a co-worker association• Workers’ accident insurances – An accident insurance covering medical treatment for work related accidents is available to all workers• Safe and Healthy Work Environment – All co-workers within retail and distribution undergo safety training before starting to work at IKEA
    9. 9. • IKEA’s innovative human resource management practices has helped build a strong and nurturing culture that promotes diversity and creativity• In an industry characterized by high turnover, their employee friendly policy has made IKEA a preferred employer in the retail sector • Working in line with strategy, its HRM practices has helped in sustaining IKEA’s growth • In many countries, IKEA is the “Employer of Choice” and globally IKEA is listed as one of the top 50 most attractive employers in 2010 • IKEA has the distinction of being in FORTUNE’s “100 Best Companies to Work For” list for three consecutive years