IKEA co-workers to share in company’s success
Home furnishing company IKEA today announced a new loyalty programme for all of its 136,000 co-workers working across 26 countries.
The new programme called “Tack!” – Swedish for “thank you” – was unveiled to IKEA’s 7,200 co-workers in the UK and Ireland this morning. It rewards everyone who has been with IKEA for over five years with an annual contribution to their individual pension plans, assuming that pre-agreed global sales targets are reached. In the first year of the scheme, The IKEA Group has announced the contribution to the programme will be €100 million.
Full time co-workers will receive the same amount, regardless of their department, their position or salary, with part-time workers receiving a proportional amount dependent on their hours. The annual pay outs will go directly into individual pension plans, to be accessed at retirement age.
IKEA anticipates that each qualifying full-time employee in all 19 of its UK and Ireland stores could receive a lump sum of approximately £500 into their pension pot next year which is the equivalent to nearly two week’s pay for co-workers. With over 55% of UK co-workers at five or more years service, nearly 4000 co-workers are eligible for the first pay out in September 2014.
The launch of “Tack!” follows the introduction in September this year of the “One IKEA Bonus” programme, an annual performance-related bonus system that is linked to individual salary. The performance-related bonuses for 2014 will be announced at the end of the financial year and due to positive sales growth already seen this year, co-workers in the UK are currently on track to make the bonus. A co-worker on a start rate of £6.99 per hour could earn up to an extra £1,535, based on the maximum pay out.
Peter Agnefjall, CEO and President of the IKEA Group says, “The introduction of the Tack! Programme has been inspired by Ingvar Kamprad’s wish to share the success of the IKEA Group with the co-workers. Everyone, no matter what position they hold at the IKEA Group, contributes to our growth and is important to our continued success.”
Pernille Hagild, IKEA UK and Ireland HR Manager adds, “The co-workers are the inner strength of our company and we strive for long-term relationships with the people who are so important for our success. We want to recognise the contributions of our co-workers and those that show loyalty to the company. Both Tack! and the One IKEA bonus programme strengthen IKEA’s position as a great place to work in the UK.”
In addition, every year all 7,200 co-workers receive a Christmas gift from the company. This year’s gift was Virgin Experience vouchers worth £50 each and was given last Friday.
In November 2013, IKEA UK posted annual sales results for financial year 2013 of £1.268 billion. The IKEA Group’s annual report, “Yearly Summary 2013”, is published in January 2014.