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Example of HRM Strategy - IKEA


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Published in: Business, Technology

Example of HRM Strategy - IKEA

  1. 1. Example of HRM strategy Erdem Baysal Mirna Babović
  2. 2. A Swedish based retail chain which deals in furniture and house decor items Has branches in around 41 countries VISION To create a better everyday life for the many people. 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 Universum Awards, an employer branding event
  3. 3. • The creation of simple and essential line of furniture • The development of low priced & high diversified line of products • The fostering of client & employee relationship
  4. 4. To give down-to-earth, straight-forward people the possibility to grow, both as individuals and in their professional roles, so that together we are strongly committed to creating a better everyday life for ourselves and our customers.
  5. 5. • Focus on values and cultural fit rather than skills and experience • Standard questionnaire is used for interviewing • Additional assessment for leadership positions • Value-driven recruitment system
  6. 6. • 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
  7. 7. • 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
  8. 8. • 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
  9. 9. • 76 % in 2001 • 56% in 2002 • 35% in 2003 • Turnover ratio is almost half of the industry • Lower recruiting and training costs
  10. 10. • Employee satisfaction surveys • Suggestion schemes
  11. 11. • One year development adventure program • Travel opportunities • Leadership responsibility • Incentive system • Diversity
  12. 12. • IKEA’s innovative human resource management practices have 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
  13. 13. • Working in line with strategy, it‘s HRM practices have helped in sustaining IKEA’s growth • Value driven company and empowerment of employees as great strategic and business concepts
  14. 14. Thank you for your attention!