Name : Karan Prasad Kurmi

Course: BA Hons
Module:KOL6002: Academic English for International Business
Topic Title: Employer Branding and Diversity at IKEA: Managing Change for Innovation and Sustainability in Home Furnishing Business

Metrics Table: IKEA’s Diverse Workforce IKEA Key Performance Indicators

Introduction KPI Key Points Impact
Metric Details Impact Source
IKEA, a world’s leading home furnishing retail comapny, has adopted innovation and Revenue Growth Growth in annual revenues (IKEA, Effects of business development (Smith
Gender Diversity Leadership position: Fights for gender equality (IKEA, 2023; McKinsey &
sustainability strategies to attract talent. Its employer branding emphasizes core 2023) & Lee, 2021)
Women- 50% and is a role model Company, 2020)
values: of sustainability, inclusion and teamwork. Incorporating the organizational Customer Satisfaction Customer satisfaction index on quality Alignment with global customer
beliefs of the company, IKEA supports social, as well as environmental responsibility, Global Representation Employees from over 140 It is multicultural and (Smith & Lee, 2021) of product/ service (IKEA, 2023) expectations (Robinson, 2020)

enabling people to live a superior life (IKEA Corporate, 2023). countries liberal.
Diversity Metrics Gender, cultural, and other forms of Development in diversity and fair
Underrepresented 30% of new hires from There are two effects: It (IKEA, 2023) diversity, inclusion (McKinsey & employment (IKEA, 2023)
Groups underrepresented groups also raises the prospects Company, 2020)
and improves equity. Employee Retention Employee turnover rates (Sellers et al., Employee satisfaction and the employer
2020) branding process (Smith & Lee, 2021)
Employee Satisfaction 85% satisfaction in Suggests that workplace (Nishii, 2013)
diversity survey environment is friendly,
Sustainability Metrics Energy efficiency and renewable energy, Environmental responsibility and
liberal and encompasses sustainable resources (IKEA, 2023) sustainable development (Page, 2007)
everyone.
Product Innovation Percentage of new products yearly Creativity and market-orientedness
Cultural Training 90% of managers trained Strengthen cooperation (Sellers et al., 2020) (Page, 2007) (Smith & Lee, 2021)
Employer Branding at IKEA on inclusivity between participants and Energy Efficiency Reduction of energy consumption in Pledge to decrease the carbon intensity
The employer branding at IKEA is mainly based on the idea of positioning IKEA as improve the process of stores/logistics (IKEA, 2023) (McKinsey & Company, 2020)
an employer of choice for sustainability and diversity. communication.

Product Innovation 40% of new products Stimulates creativity and (Page, 2007)
Provides a positive
inspired by diverse teams customer value. Conclusion
work environment with
flexible arrangements. Focuses on innovation Employer branding and diversity are two essential factors of IKEA’s sustainability and innovation. IKEA needs more
Promotes itself as an through teamwork, diverse teams to have a friendly and inclusive environment; in turn, the company is succeeding at becoming the place
employer of choice diversity, and that exemplifies its mission – better everyday living for the many people (Kamprad, 2023).
through sustainability environmental Customer Satisfaction 92% cite diverse product Meets global customer (Smith & Lee, 2021)
and inclusivity. stewardship (Robinson, offerings requirements
2020).

References
Barrow, S., & Mosley, R. (2017). The employer brand: Bringing the best of brand management to people at work.
Highlights sustainable Benefits and Challenges Wiley. Retrieved from https://www.wiley.comZ-LibraryO'Reilly Media
leadership programs Recognized for its Cox, T. H., & Blake, S. (1991). Managing cultural diversity: Implications for organizational competitiveness.
and employee corporate social Academy of Management Perspectives, 5(3), 45–56. Retrieved from https://journals.aom.org.
development initiatives responsibility IKEA. (2023). Diversity and inclusion: Annual sustainability report. Retrieved from https://www.ikea.com.
to foster talent. IKEA. (2023). Diversity and sustainability. Corporate Reports. Retrieved from https://www.ikea.com.
Benefits

IKEA. (2023). Sustainability report 2023: Focusing on a better everyday life. IKEA Official Reports. Retrieved from
Diverse perspectives drive Managing cultural https://www.ikea.com.
innovation in product differences and Kamprad, I. (2023). IKEA’s mission and sustainability journey. Sustainability Reports. Retrieved from
design and customer communication across a https://www.ikea.com.
engagement (Page, 2007). global workforce (Cox & McKinsey & Company. (2020). Diversity wins: How inclusion matters. McKinsey Insights. Retrieved from
Inclusivity fosters Blake, 1991). https://www.mckinsey.com.
employee satisfaction, Addressing unconscious Nishii, L. H. (2013). The benefits of climate for inclusion for gender-diverse groups. Academy of Management
creativity, and collaboration bias and ensuring equitable Journal, 56(6), 1754–1774. Retrieved from https://journals.aom.org.
(Nishii, 2013). opportunities (Sellers et al., Page, S. E. (2007). The difference: How the power of diversity creates better groups, firms, schools, and societies.
Diversity in IKEA’s Workforce 2020). Princeton University Press. Retrieved from https://press.princeton.edu.
Main diversity activities include empowering women in workplaces, recruiting more

Challenges
Robinson, A. (2020). IKEA’s leadership programs: Building an inclusive workforce. Journal of Leadership Studies,
people in diversity, and developing international mobility for talents with concerns to 12(3), 234–250. Retrieved from https://journals.sagepub.com.
Robinson, K. (2020). Measuring customer satisfaction in the retail sector. Journal of Business Research, 45(4), 345–
the worldwide IKEA business. For IKEA maintaining market dominance whilst 360. Retrieved from https://www.journals.elsevier.com.
remaining loyal to its vision of improving people’s everyday lives the multicultural Sellers, R. M., et al. (2020). Unconscious bias in organizational decision-making. Journal of Applied Social
workplace matters (Smith & Lee, 2021). Psychology, 50(4), 257–267. Retrieved from https://onlinelibrary.wiley.com.
Smith, K., & Lee, J. (2021). Diversity and inclusion at IKEA: A case study. Organizational Management Journal,
28(2), 102–115. Retrieved from https://www.tandfonline.com.