Ikea

About The Company

A Sweden based retail chain which deals in

furniture and house decor items

FORTUNE’s “100 Best Companies to Work For” list (three consecutive

years)

Has branches in around 41 countries

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 Universal Awards, an

employer branding event

IKEA

IKEA’S HR Strategy

1. IKEA targets job candidates who love the brand2. 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

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.

Value DrivenIKEA is a value driven company which espouses simplicity, teamwork, communicative forthrightness and urgencyCore values of IKEA are cost consciousness, dynamism, flexibility and employee empowermentIKEA designs advertising campaigns which emphasizes these valuesIKEA 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 unitsThey put in Ad “Assemble your future” leaflets in the furniture boxes that they soldA very cost effective campaign, which directly harnessed its customer baseThis campaign generated around ~5000 responses and worked out successfully for IKEA

Recruitment and Selection

Increasing Employee’s KSA

TrainingCo-workers who have mastered their current job are encouraged to seek new challengesJob enlargement/enrichment, changing the Job scope/locationAnnual development talk to discuss and outline career paths On-the-job training complemented by traditional classroom coursesA wide range of web-based training activities for all aspects of IKEA operations

Selection Emphasis on value-fit as its selection criteriaIKEA provides a co-worker as a mentor for new co-worker for some time

CompensationIKEA has developed global, mandatory guidelines for compensation and benefitsEach 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

Motivation enhancing HRM practicesInternal Promotion

One year development adventure programme that any co-worker with potential can apply for in the beginning of their careerThe participants travel to two different countries for six months each to work in different fields to what they are used toThese 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 IKEAEmphasis on designing reward systems that best fits the local context

Encouraging Diversity in the workplaceAbout 40% of the Co-Workers are women with a great mix of nationalitiesIKEA’s purchasing and retail operations in 41 different countries are led by country managers of 14 different nationalities

Empowerment enhancing HRM practicesGrievance Procedure

“VOICE” : IKEA uses a company-wide survey called “VOICE” to monitor how co-workers view various aspects of their employment at IKEAThe “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 InformedIKEA Intranet is complemented by a variety of different channels such as regular meetings, easily accessible notice boards, newsletters and closed-circuit radioThe global co-worker Magazine Readme which is distributed to all co-workers is translated into 19 languagesIKEA 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 BalanceCo-workers of different ages are at different stages of their lives and are delegated different activities as per their convenience

IWAY StandardIt is a code of conduct that defines the guiding principles that governs the organisationPrevention 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 UnionsIKEA supports each co-worker’s right to freedom of association and does not express any preference within the institutional and recognized co-worker associationsIKEA respect the rights of its co-workers to join, form or not to join a co-worker association

Workers’ accident insurancesAn 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

Conclusion

IKEA’s innovative human resource management practices has helped build a strong and nurturing culture that promotes diversity and creativityIn 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 growthIn many countries, IKEA is the “Employer of Choice” and globally IKEA is listed as one of the top 50 most attractive employers in 2010IKEA has the distinction of being in FORTUNE’s “100 Best Companies to Work For” list for three consecutive years

THANK YOU

Presented BY: Dering Naben Firoz Anjum Anirban Purkayastha Ishita Suman Aditi Thakur Gurjant Singh Sandhu

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