IKEA Employee Compensation Package
Company overview
IKEA is a home furnishing retailer known for its brand and products all across the globe. The company was founded in 1943. Since the foundation of the organization, the company has gone through ups and downs making several changes in its HR policies to be one of the reputed companies among the employees working in this industry. IKEA has a range of more than 9500 products that are sold through its more than 300 stores all around the world (Baraldi, 2008). There are millions of people working directly and indirectly for the company that acts as the backbone of the organization. The company has more than 600 million visitors to its stores and more than 500 million people visit its website every year. Hence, it is important for the company to maintain a proper compensation strategy to motivate its employees and enhance their performance to achieve customer satisfaction. The paper presents a job analysis and discusses the compensation policy to know how the IKEA differs from its rival businesses.
Job Analysis
As IKEA is the largest furniture retailer and home furnisher of the world, the company has got several roles for their employees to be fulfilled in order to deliver innovative product designs, low-priced furniture and inspiring purchasing techniques to the targeted customers. Considering the diversification of the available jobs, working with IKEA correctly does not mean working at an IKEA retail store. In this particular report paper, some of the essential working positions have been discussed to complete the job analysis section of IKEA.
Communication and Interior design: Interior designers are one of the essential job specifications in an IKEA store. The role of the interior designers is to create a positive impression on the incoming customers by explaining several designs and settings of displays to the client. Most of the interior designers working in IKEA stores must develop a precise communication skill to know the customer’s choice and visual dreams (Ikea.com, 2016).
Design and product development: Identifying the most recent trends and everyday needs of the customers, the product designers of IKEA have to design the most convenient and low-priced products to impress the customers. Utilizing modern storage technology, the product designers of the company are always looking to surprise their customers providing elegant features and quality materials for furniture.
Customer Relations: Customer relations of the retail business merchant offer talented and knowledgeable personnel to help out the customers’ requirements responding to their calls. The role of the customer relation manager is to support a customer in case of any featured problems relevant to the products or purchasing.
Human Resources Management: The HR management of IKEA has got the most professional employees who can lead the other employees by setting proper business terms and examples to be followed by the rest of the human resources. Continual developments in the organizational human resources have been developed through the motivational training session and succession planning for the employees.
Information Technology: In the case of the efficient flow of the corporate information, being a global company, IKEA has hired proficient IT professionals to make proper solutions in an innovative process (Ikea.com, 2016). The IT employees of IKEA have developed creative information supply system to make a quick response and appropriate services to the customers.
Finance and Business course-plotting: As far as organizational development is concerned, IKEA has got several co-workers in the financial structure to meet all the requirements and legal demands securing the long-run evolution of the business. In addition to that, the business navigators working for the global company utilize their knowledge and business skills to assess the market opportunities and transfer the opportunity into success.
Marketing: In marketing section, there are sections such as project leader, art directors, web designers and communication developers to build a strong marketing and communication campaign to create brand awareness. In order to create proper marketing, the marketing personnel need to work out the publications, advertisements brochures, catalogues and other visual assessments.
Logistics: In the case of logistics section, there is job specification such as in-store logistics manager and sales and support staffs. Following the job description, the employees working in this segment need to utilize their knowledge to maintain a supply chain with the distributors and suppliers. Considering many things such as the cost of transport, distribution costs, and products manufacturing cost, it is the responsibility of the logistics team to maintain fast-paced services.
Purchasing: In the purchasing department, the purchasing employees need to create a good relationship with the suppliers. Such particular attributes can deliver quality production of furniture at the lowest cost. Meanwhile, purchasing co-workers of IKEA ensure most advantageous manufacturing condition, merchandise availability, and superiority.
Sales: The sales team of IKEA has been practically trained to guide the customers in such a way that customers can leave the store with proper satisfaction finding every answer to their questions. Moreover, the sales personnel of IKEA have a zeal for retail. In this way, the sales team creates a positive impression on the incoming customers making an impact on consumers’ purchasing behavior (Ikea.com, 2016).
Monetary and non-monetary compensation
The IKEA does not only provide a job to its employees but also believes in providing a better life to its employees. There are several monetary and non-monetary compensations provided the employees to make them have a better life with IKEA.
First Day of School Leave: The permanent workers of the company are provided with paid leaves. In addition to personal leaves and annual leaves, they are also provided with other leaves like Blood donor’s leave, career break, volunteer leave, wellness day leave and co-workers day leave. The company also provides the workers with paid time offs, sick leaves and other paid holidays (Rask, Korsgaard & Lauring, 2010).
Rewards: The casual co-workers are rewarded with $50, part-time co-workers with $75, and full-time co-workers with up to $100 every year. Along with that, the managers are allowed with $200 to spend in the store while senior managers are given $500.
Long Term Services Awards: For long-term services, the following awards are given:
$500 to spend in stores for a service of minimum 5 year
$1000 to spend in store for a service of minimum 10 years
$1500 travel voucher for a service of minimum 15 years
$3000 travel voucher for a service of minimum 20 years
$5000 contribution into super fund for a service of minimum 25 years
Insurance, Health, and Wellness: The workers are provided with health insurance, dental insurance, flexible spending account, health savings account, vision insurance, life insurance, disability insurance, occupation accident insurance, accidental death insurance and many more.
Family and Parenting: IKEA gives its employees a maternity & paternity leave, dependent care, adoption assistance, military leave, family medical leave, extended unpaid leave and fertility assistance.
Financial & Retirement: The Company provides its employees with pension plan, performance bonuses, retirement plan and equity incentive plan.
Perks and Discounts: The employees of IKEA get free lunch and snacks, mobile phone discounts, legal assistance, travel concierge and employee discounts (Rask, Korsgaard & Lauring, 2010).
Professional Supports: The Company also provides job training, professional development program, tuition assistance, and diversity programs to its employees.
Conclusion
IKEA uses innovative HR management practices to build a strong organization culture that promotes creativity and diversity. The employee friendly policy of the company makes it one of the best employers in the furnishing retail sector. The HRM policies of the company have helped it to sustain growth in this competitive market. The company has been listed in the top 50 most attractive employers in the world in the year 2010. Along with that, the company has won the title of the “Employer of Choice” in many countries across the globe.
References
Baraldi, E. (2008). Strategy in Industrial Networks: Experiences from IKEA. California Management Review, 50(4), 99-126. http://dx.doi.org/10.2307/41166458
Ikea.com,. (2016). Work areas - IKEA. Retrieved March 2016, from http://www.ikea.com/ms/en_GB/the_ikea_story/working_at_ikea/work_areas.html
Rask, M., Korsgaard, S., & Lauring, J. (2010). When international management meets diversity management: the case of IKEA. EJIM, 4(4), 396. http://dx.doi.org/10.1504/ejim.2010.033609
