Example of HRM strategy Erdem Baysal Mirna Babović
Example of HRM strategy
Erdem BaysalMirna Babović
IntroductionA Swedish based retail chain which deals in furniture and house decor
items
Has branches in around 41 countries
Working Mother magazine’s annual list of the “100 Best
Companies for Working Mothers” (four consecutive
years)
Ranked 20th in 'The World’s Most Attractive Employers 2011' in the Universum Awards, an employer
branding event
Training magazine’s annual “Top 100” ranking of companies that
excel at human capital development (four consecutive
years)
FORTUNE’s “100 Best Companies to Work For” list (three
consecutive years)
VISION
To create a better everyday life for the many people.
Major goals of company culture
• 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
The Human Resource Idea
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.
Recruiting Policy
• 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
Example – 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
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
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
Turnover Ratio
• 76 % in 2001
• 56% in 2002
• 35% in 2003
• Turnover ratio is almost half of the
industry
• Lower recruiting and training costs
Employee Feedback
• Employee satisfaction surveys
• Suggestion schemes
Motivation Enhancing
• One year development adventure
program
• Travel opportunities
• Leadership responsibility
• Incentive system
• Diversity
IKEA Fit Quiz
IKEA Trainee program
Conclusion• 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
Conclusion cont‘d
• 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
Thank you for your attention!