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IKEA - HRM Analysis

This document explains Human Resource Management in IKEA, outlining the company’s timeline, HR processes, and the key policies implemented to support employee growth, engagement, and organizational success.

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0% found this document useful (0 votes)
58 views22 pages

IKEA - HRM Analysis

This document explains Human Resource Management in IKEA, outlining the company’s timeline, HR processes, and the key policies implemented to support employee growth, engagement, and organizational success.

Uploaded by

srishti.eco2349
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

IKEA

“Building a better everyday


life for employees”
TEAM 1
Ishita Sharma Shreya Roy
Khushi Sharma Tanya Keshri
Meenal Vanshika Jaiswal
THE BIRTH OF IKEA: FILLING A GAP
FOUNDED BY IKEA operates 465 stores in more than 63 markets.
FOUNDED IN
17-year-old
Ingvar Kamprad

SWEDEN
in 1943
IKEA founder Ingvar Kamprad’s dream
to create a better life for as many people as
possible – whatever the size of their wallet
– is and will always be our driving force.
TIMELINE: WHEN In December 2020, the Navi
Mumbai store opened as

DID IKEA ENTER


IKEA's second store in India,
with smaller city stores also

2020
planned in Mumbai.

INDIA? In 2013, IKEA received


government approval
to invest $1.5 billion in

2025
India retail operations,

2013
committing to source
30% of its products
locally. In August 2025, IKEA
opened its first city-format
store in Delhi at Pacific Mall,
Tagore Garden, marking
expansion in North India,

2018
with plans for more stores in
Gurgaon and Noida.

2006
The first store in India
opened in Hyderabad in
August 2018 after delays
IKEA first expressed interest in entering the
from an initially planned
Indian market in 2006 and began strategic
planning and adaptations for the unique July opening date.
Indian market.
MISSION TO CREATE A BETTER
EVERYDAY LIFE FOR THE
TO OFFER A WIDE RANGE MANY PEOPLE
OF WELL‑DESIGNED,
FUNCTIONAL HOME IT SPANS BEYOND
FURNISHING PRODUCTS FURNISHINGS,
AT PRICES SO LOW THAT ENCOMPASSING A
AS MANY PEOPLE AS BROADER POSITIVE
POSSIBLE WILL BE ABLE IMPACT ON INDIVIDUALS
TO AFFORD THEM AND SOCIETIES.

VISION
IKEA INDIA RECRUITMENT PROCESS
1 TALENT
ATTRACTING
3 SCREENING 5 HIRING
DIVERSITY
Focus on values &
Women, LGBTQ+,
Job postings, career culture-fit, not just
skills differently-abled, local
fairs, community
youth
outreach

2 APPLICATION
PROCESS 4 INTERVIEWS
Inclusive panels,
6 FINAL
SELECTION
Equal opportunity,
Simple, transparent,
structured behavioral
online applications fair & unbiased
questions
process
ONBOARDING AT IKEA
STEP 1 – WARM STEP 2 – EXPERIENCE
WELCOME IKEA
“Welcome Home” Learn IKEA story,

culture feel like part vision & values
Hands-on activity:
of family Assigned a
assembling IKEA
buddy/mentor
furniture
Store tour & customer
interactions

STEP 3 – INCLUSION STEP 4 – BELONGING


FROM DAY ONE & GROWTH
Diversity & inclusion sessions Role-specific training
Respect for local culture (India: Feedback & support from
leaders
mix of Swedish + Indian
Pathway to career
traditions)
development
TRAINING AND DEVELOPMENT PROGRAMS
Anna Carin Månsson, Country HR Manager for IKEA India, highlighted that the
company recruits by values and invests in hands-on employee development well beyond
typical retail practices.

IKEA has engaged


Well-documented and supported by
Urban Clap
IKEA Foundation and partners to skill
DISHA Indian women for retail careers and
URBAN CLAP carpenters for store-
related training and
PROGRAME entrepreneurship, with explicit IKEA COLLABORATION professional
media and foundation mentions.
upskilling in public
references

INDIVIDUAL INTERNAL SKILL TRAINING DIVERSITY &


DEVELOPMENT TRAINING INITIATIVES SENSITIZATION
PLANS PROGRAMS TRAINING
PEOPLE- VALUES-
STRONG WORK-
CENTERED DRIVEN CULTURE OF
LIFE INTEGRATION APPROACH HR BELONGING
Policies on flexibility, IKEA sees employees Recruitment, Festivals, team-
as “co-workers” and training, and
parental leave, and rewards are based
building events,
not just staff — and shared meals
wellness directly reflect on shared values like
emphasizing foster inclusion,
simplicity, cost-
IKEA’s belief in “a better equality and flat consciousness, and especially in IKEA
everyday life hierarchy. togetherness. India.

ENGAGEMENT OPEN &


Opportunities for internal Encourages co-workers to
THROUGH INCLUSIVE WORK
mobility, upskilling, and career speak up, share ideas, and ENVIRONMENT
pathways keep employees GROWTH participate in decision-
motivated. making.

“ T O G E T H E R N E S S AT T H E H E A R T O F H R ”
FAIR PAY, REAL BENEFITS
15% Co- Fair Pay Tack! Loyalty Paid Comprehensive Additional
worker Program Parental Health Perks
Discount: Policy: Leave Benefits Extra paid
Equal annual
Available Competitive, Up to 4 months vacation days,
pension Medical,
from day one equal pay for paid leave transport
contributions dental, vision,
on all IKEA all employees based on years contributions,
for all eligible life, and even
products and regardless of of service, volunteering
co-workers as a pet insurance
food, valid role or supporting days, and
thank-you for available to
globally and gender. family bonding celebrations for
loyalty, support
becomes and work-life employee and life events to
promoting
lifelong after balance. family well- foster community
long-term
10 years. being. and happiness.
security.
WORK-LIFE BALANCE
Flexible work Employee Wellness
arrangement Initiatives
Options for part-time, hybrid, Counselling, wellness
and predictable schedules to programs, and family-first
balance work and life. policies for holistic support.

Personal & Growth Comprehensive Leave


Sabbaticals Benefits
Extended breaks for Vacation and sick leave
education, personal projects, that go beyond statutory
or rejuvenation. requirements.
Career Flexibility &
Inclusive Festival Internal Mobility
Leave Employees can shift roles, explore new
Flexibility to take time off for departments, or upskill while staying
culturally or religiously within IKEA, supporting both career
significant festivals. growth and personal balance.
LEARNING & DEVELOPMENT AT IKEA:
GROWING PEOPLE, GROWING IKEA

Continuous Learning IKEA Learning Leadership On-the-Job


Regular training Hub – Digital Programs– Learning –
programs for all co- platform for skill- Future leaders Hands-on
workers building and e- developed experience in real
learning through internal work settings
training

Career Development – Clear Local Adaptation – Training in


pathways for promotions and India focuses on cultural
internal mobility sensitivity, customer service, and
retail skills
WORLD

50% gender balance in


leadership globally
Openly inclusive of LGBTQ+
community
Hiring programs for
INDIA
Target: 50% women
differently-abled co-workers workforce in stores
Equal pay policy across all Focus on hiring from
countries local communities &
Countries with active IKEA stores. This includes a youth
significant portion of North America Language & cultural
Countries where IKEA stores were sensitivity training for
previously present but are now closed.
inclusion
Countries where IKEA stores are planned

DIVERSITY & INCLUSION AT IKEA


or coming soon. This includes parts of
South America
Countries with no current or planned
IKEA stores.
IKEA IKEA
IKEA LEADERSHIP MOTIVATION IKEA
IKEA IKEA
IKEA Collaborative & Involvement in
IKEA
IKEA
meaningful projects
IKEA
Inclusive, empowering
employees to such as Sustainability

IKEA contribute ideas. Initiatives & Community


Programs.
IKEA
IKEA Take ownership of IKEA
IKEA Sustainability & Recognition Programs
promoting teamwork &
IKEA
IKEA IKEA
Business Goals
Innovation.

IKEA IKEA
IKEA IKEA
IKEA IKEA
IKEA AIMS TO BE CLIMATE POSITIVE BY
2030 (REDUCE MORE GREENHOUSE GASES
THAN IT EMITS).
Employees are trained in sustainable business
practices (waste management, green logistics,
renewable energy awareness).
IKEA Learning Academy includes sustainability
training modules.
Employee participation in “green teams” to
reduce energy use in stores.


IKEA HYDERABAD STORE 100% POWERED
BY RENEWABLE ENERGY (SOLAR + WIND).
Cafeterias promote affordable vegetarian meals
to reduce carbon footprint.
Employee volunteer programs for tree
plantation & community clean-ups.
IN JULY 2024, IKEA HYDERABAD EARNED A
GOLD AWARD FOR EXCELLENCE IN
WORKPLACE SAFETY FROM INFHRA

IKEA INDIA WON THE UN WOMEN ASIA-


PACIFIC WEPS AWARD 2020 FOR A GENDER-
INCLUSIVE WORKPLACE.
IKEA’S TACK PROGRAMME

Meaning: “Tack!” = “Thank


You” in Swedish; IKEA’s loyalty
programme (since 2013).
EQUAL AMOUNT FOR IKEA CONTRIBUTES
ALL, REGARDLESS OF BASED ON COMPANY
ROLE/SALARY (PART- RESULTS &
TIME = COUNTRY’S WAGE
Purpose: Reward co-workers’
PROPORTIONATE). SHARE. loyalty & contribution to IKEA’s

GLOBAL IMPACT
success.
PAYOUTS

Eligibility: Minimum 5 years of


EXAMPLE: IN INDIA, TILL NOW: €509
₹1.5 LAKH EACH TO MILLION GLOBALLY,
service; annual pension payout
171 CO-WORKERS. ₹82 MILLION IN thereafter.
INDIA.

Additional Benefit: One IKEA


Bonus → performance-based,
~1 month’s extra salary/year.
C
C WORKS WITH 1
S
S
R
R

UNDP RANGSUTRA LOCAL


NGOS
ETHICAL

EMPLOYEE
SOURCING
Ensures fair
WOMEN EMPOWERMENT
Programs to support skills 2
wages, safe and livelihoods in rural
VOLUNTEERING work, and areas
Co-workers engage
3
no child
4
in community EDUCATION SUPPORT
development labor in
projects 5 supply
chains
Initiatives for child rights
and quality education
IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKE
HUMAN TOUCH, POWERED BY
IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKE
TECHNOLOGY
IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKE
E-LEARNING
IKEA IKEA IKEA IKEA IKEA
WORKPLACE IKEA IKEA IKEAONBOARDING
PLATFORMS IKEA IKEA IKEA IKEA IKE
IKEA IKEA IKEA
IKEADIGITAL IKEA IKEA
TOOLS DigitalIKEA IKEA IKEA
training APPSIKEA IKEA IKEA IKE
HR PORTALS &
IKEA IKEA IKEA IKEA
RECRUITMENT IKEA
IKEA uses
Microsoft
IKEA IKEA
for skills &
leadership
IKEA IKEA
Virtual IKEA
tours, e- IKEASELF
IKEA IKE
IKEA IKEA IKEAscheduling
IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKE
learning
Teams, digital development. -SERVICE
AI & data-driven modules

IKEA IKEA IKEA


forIKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKE
apps Employees
hiring platforms buddy programs
co-workers. manage leave,
IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKE
for faster, bias-
IKEAfree hiring. payroll, benefits

IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKE
online

IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKE
IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKEA IKE
HRM CHALLENGES -Talent Retention- -Skill Upgradation-
Sustaining skilled Continuous training to

AT employees in a highly
competitive job market.
match global and local
retail standards.

-Workforce Diversity- -High Attrition in Retail


Managing a multilingual, Sector-
multicultural, and Frequent job-hopping
regionally diverse increases hiring and
workforce. training costs.

-Compliance with Local


-Employee Engagement-
Laws-
Keeping motivation high
Adapting HR practices to
in large-scale retail
India’s complex labour
operations.
regulations.
DISCIPLINARY MECHANISM
AT IKEA
Issue Identification –
Policy Communication – Clear
Misconduct or
code of conduct and
expectations are shared with all performance issue is
employees. reported or observed.

Initial Warning –
Investigation & Fact-Finding – Informal counselling or
HR gathers details, evidence,
verbal warning is given
and context before action.
for minor issues.

Resolution & Follow-Up


Formal Action – Written
– Final review,
warning, performance
improvement plan, or
corrective measures, and
suspension if problem persists. continuous monitoring
to prevent recurrence.
APPENDIX
https://share.google/Ti0YKtUAIPOXJSAGJ

https://www.hrdconnect.com/2024/05/02/how-inter-ikea-transformed-its-
global-employee-experience-to-build-a-future-proof-workforce/

https://perkupapp.com/post/6-ikea-employee-perks-benefits-the-company-
offers-its-workforce

https://www.hrkatha.com/global-hr-news/ikea-to-train-3000-in-ai/

https://www.bwpeople.in/article/ikea-india-partners-with-tata-strive-to-build-employability-among-youth-400507

https://ikeafoundation.org/learnings/the-disha-programme-in-india/
Ishita Sharma Shreya Roy
Khushi Sharma Tanya Keshri
Meenal Vanshika Jaiswal

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