IKEA is a Swedish furniture retailer with branches in 41 countries that aims to provide affordable home furnishings and create a better life for customers. It has been recognized as a top employer, focusing on cultural fit over skills alone in recruitment. IKEA promotes from within, offers on-the-job and online training, standardized global compensation, and surveys employees to solicit feedback. These human resource practices have helped IKEA build a strong culture with lower turnover than competitors, sustaining its growth as a preferred retail employer.

1. Example of HRM
strategy
Erdem Baysal
Mirna Babović

4. 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

5. • 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

6. 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.

7. • 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

8. • 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

9. • 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

10. • 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

11. • 76 % in 2001
• 56% in 2002
• 35% in 2003
• Turnover ratio is almost half of the industry
• Lower recruiting and training costs

12. • Employee satisfaction surveys
• Suggestion schemes

13. • One year development adventure program
• Travel opportunities
• Leadership responsibility
• Incentive system
• Diversity

16. • 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

17. • 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

18. Thank you for your attention!