2. About The Company
Has branches in around
41 countries
A Sweden based retail chain
which deals in furniture and FORTUNE’s “100 Best
house decor items Companies to Work For” list
(three consecutive years)
Working Mother magazine’s IKEA
annual list of the “100 Best Training magazine’s annual
Companies for Working “Top 100” ranking of
Mothers” (four consecutive companies that excel at
years) human capital development
(four consecutive years)
Ranked 20th in 'The World’s
Most Attractive Employers
2011' in the Universal Awards,
an employer branding event
3. IKEA’S HR Strategy
1. IKEA targets job candidates who love the brand
2. IKEA utilizes resources it already has
3. It has effective retention strategy
4. The recruiting strategy aligns with IKEAS’s brand image
5. By making recruiting fun
4. HR strategy that IKEA can implement in INDIA
Fill all senior management positions with local nationals to ensure
maximum adaptation to local conditions.
Identify managers irrespective of their nationality for various
international assignments to ensure that best practices are identified and
replicated in all the units of the organization.
Companies can identify and develop local talent through in-house
Management Development Programs (MDP).
In doing business with India, IKEA have to make attention with the
culture and the communication.
5. 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
6. 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
7. 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
8. 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
9. 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
10. 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
