IKEAONE OF THE BEST PLACES TO WORK

A Presentation on IKEA’S Innovative HR Policies & Work Culture.

Presented By,Div A - Group 8

Geetika ChawlaHarshvardhan Chokhani

Johnson ChackoNikunj Passi

Pankaj Rai

So what’s IKEA?? (Ingvar Kamprad Elmtaryd Agunnaryd)

• 1943: IKEA was founded by Ingvar Kamprad, sold watches, jewellery, furniture etc.

• 1951 : Specialized in low priced innovative furniture

• 1955 : Introduced its most successful innovation - Furniture that could be DISMANTLED

• In 2005, the company employed over 84000 people in 205 stores across 32 countries

IKEA – The Best Employer??2003: IKEA’s Attrition Rate drops to 35% vis a vis Industry’s 60%

2004: IKEA in the list of “100 Best Companies for Working Mother” ----- Working Mother Magazine

2005: IKEA in the list of “100 Best Companies to Work For” ----- Fortune Magazine

#1 IKEA’s HR Policies

BOOSTED

Employee Morale

How did IKEA get there

Creating Better Everyday Life for People

• Support ‘Life Balance & Diversity’

• Flexible Working Hours and Holidays

#1 IKEA’s HR Policies BOOSTED Employee Morale

• Parental Benefits

• Annual ‘Employee Appreciation Day’

• Tuition Reimbursement for Graduate & Undergraduate Programs

#1 IKEA’s HR Policies BOOSTED Employee Morale

#2 IKEA’s Employee Development Programs

were advantageous to

Employees and IKEA both

How did IKEA get there

#2 IKEA’s Employee Development Programs

• Training Programs in health, safety and environmental consciousness etc.

• Mentoring Initiatives like ‘Partners for Growth’

• Self Assessment Tools like ‘Paddle your own Canoe’

• Special training programs like ‘I want your Job’

#2 IKEA’s Employee Development Programs

• Global application Tracking System ‘Enterprise’

• Encouraging New Ideas, Encouraged ‘Why Sayers’

• Encouraged concerns sharing through programs like ‘Express yourself’

#3 IKEA’s Work Culture

fostered

INNOVATION

How did IKEA get there

#3 IKEA’s Work Culture Fostered Innovation

• Big Family Culture• Promoted Diversity

• Openness and Equality – All employees addressed as ‘Co workers’

• Flat structure & Uniform Dress Code for All

#3 IKEA’s Work Culture Fostered Innovation

• Cost Consciousness

• No Detailed Instruction to Employees

O Openness to Change

• Scandinavian Names to Products

THE PAYOFF

• Pay off far outweighed the costs• Employee turnover 76% in 2001, to 56% in 2002 and 35 %

in 2003• Company’s turnover was almost half the average industry

rate• Profit margin was almost double of its competitors

–BIGGEST COMPETITIVE ADVANTAGE - IKEA understood importance of a committed work force and made the effort to retain people.

THANK YOU!!