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IKEA calls for Australian businesses to step up support for refugees

IKEA co-workers in the Skills for Employment program in the store
Corporate news2 September 2021Last edited: 3 September 2021
IKEA Australia is sharing the life-changing stories from the program to shine a light on the mutually enriching outcomes for refugees and society – showing how when given the opportunity, refugees can reach their full potential in their new home and make a valuable contribution to their local community and the economy.

14 June 2021- To mark World Refugee Day Sunday 20 June 2021, IKEA Australia commissioned a study with 1000+ Australians which found:

  • 1 in 2 Australians believe businesses can do more to support refugee workforce integration 
  • 85 per cent of Australians would like to see the Federal Government doing more to support refugees once they are resettled in Australia
  • The majority (90%) acknowledge there’s barriers to employment for refugees such as language, cultural differences, and cultural bias, and also believe there are benefits to business employing refugees (82%)
  • More than half (55%) believe there’s more business could be doing to support their integration into the workforce.

 

To help overcome barriers to employment, IKEA runs the Skills for Employment program, where participants spend two months working at IKEA and leave having gained crucial Australian work experience and a reference for future employment. 

The eight-week paid placement, run in partnership with Community Corporate, an award-winning social enterprise, is committed to supporting 180 refugees and asylum seekers in the program by mid 2023. Globally, IKEA has an ambition to support 2500 refugees in the program. A strong belief that refugees bring value to business and society. 

Alice Young, Equality, Diversity and Inclusion Leader, IKEA Australia, said, “Refugees are highly motivated to work and bring a wide range of skills and qualifications, and yet they face many barriers when trying to join the Australian workforce including difficulties with their qualifications being recognised, a lack of local networks and local language capability.”

“Supporting refugees to gain employment is a social obligation but also a big opportunity, creating a diverse work environment with better understanding of our diverse customers.  It’s also a chance to increase employee engagement in the purpose of a company, building pride, trust, and an inclusive culture,” said Alice.

A life-changing experience

Before arriving in Australia in 2018, 21-year-old Zeynab was living in Iran. As an Afghan, she faced discrimination and lacked rights to the same education, healthcare and employment opportunities as Iranian citizens. In March 2021, Zeynab participated in the IKEA Australia Skills for Employment program. Today she works as a Logistics Co-worker at IKEA Adelaide and is undertaking a Foundations studies course to prepare for future university study – an opportunity she could never have in Iran.

Zeynab is one of 39 refugees so far to take part in the program in Australia, with 595 in total across IKEA stores in 20 countries.

Zeynab said, “For two years I applied for job after job with no success, I felt hopeless. I wanted to work so badly but no one would give me the opportunity to show what I could do. The Skills for Employment program has given me back the confidence in myself, to achieve the big dreams I have, and be hopeful, which I am so grateful for.”

Changing the narrative

Carmen Garcia, CEO, Community Corporate said, “After one year of arriving in Australia, 77 per cent of refugees remain without a job1. While that drops rapidly over time, 38 per cent are still unemployed after three years. The Skills for Employment program is a great example of how both refugees and business can benefit when we tear down the barriers that keep refugees from entering the workforce, which is also a critical connection to their new community.”

Alice explained, “Everyone deserves a home, wherever you come from, and IKEA is committed to providing refugees with the opportunities to help them build their lives at home in Australia.  Businesses play an important role in supporting their integration. We need to start challenging perceptions about refugees and change the narrative, seeing people for who they are – not stereotypes.”

Modelling from Deloitte Access Economics suggests an increase in Australia’s humanitarian intake would result in a net economic output of $37.7 billion over the next 50 years and our economy would sustain an average of 35,000 additional jobs.

“With international borders closed and businesses facing talent shortages across the country, we should be stepping up support for refugees living in Australia who have so much to offer. We’ll have richer, more inclusive and diverse workplaces if we do and a better bottom line,” concluded Alice.   

Reference:[1] Address to the Menzies Research Centre, Melbourne (homeaffairs.gov.au) 

Syrian-born, Nawar secured an ongoing contract with IKEA Tempe after completing the Stand for Refugees program
Originally from Iran, Onila and her 'buddy' Syed at her graduation from the Stand for Refugees program

About the Skills for Employment Program

In Australia, we commenced a pilot program in October 2020 with 11 participants and will support 180 refugees and asylum seekers in paid work placements by mid 2023. Each paid work placement runs for two months, providing participants with an introduction to the Australian workplace, an introduction into the IKEA ways of working, skills training, an opportunity to build their English language confidence, and a reference. 

  • There have been 39 participants to date across five stores across SA, ACT, NSW and QLD
  • 33 were offered an extended contract where vacancies were available.
  • Another 90 participants will take part in the program in the next 12 months
  • The average age of participants is 31 years
  • This was the first job opportunity in Australia for 16 of the participants
  • 3 years was the average time participants were looking for employment
  • Improvement in English skills and confidence was reported by 100% of participants at the end of each rotation

 

Globally, we have committed to supporting at least 2500 refugees by 2022 through job training and language skills initiatives in 300 IKEA units across 30 countries, by rolling out a Skills for Employment program in all Ingka Group countries during 2020. 

About the research:

This study was commissioned by IKEA Australia conducted online between the 14th – 18th May 2021 by YouGov. The sample comprised of a nationally representative sample of 1,053 Australians aged 18 years and older. YouGov designed the questionnaire, a copy of which has been included in the report. Following the completion of interviewing, the data was weighted by age, gender and region to reflect the latest Australian Bureau of Statistics population estimates.

 

Find out more about our Community Corporate, our award-winning social enterprise partner, here.