IKEA Group rewards loyalty with €96 million extra to co-workers pension fundings
India, 6th December 2017
171 co-workers in India will get an additional INR 150,120 each into their pension fundingsCompany plans to hire.
15000 co-workers by 2025 in India.
IKEA Group has announced that it will be offering additional INR 150,120 each to its Indian co-workers’ pension fundings as part of TACK! programme. Tack! is an IKEA Group Loyalty Programme to show appreciation for co-workers who continue working for the success of the business. This year the company will be rewarding a total of €96 million (INR 700 crores) to the global co-workers pension fundings.
“We are in an exciting phase in India and with the continuous hard work of our co-workers soon moving towards opening our first store in India. Tack! is a way of thanking the efforts and loyalty of our co-workers who are working for the success of IKEA. Our co-workers should know how much we value their experience and commitment, and I am proud that IKEA Group in India will give an additional INR 150,120 each to our co-workers’ pensions this year”
Anna Carin Månsson, Country HR Manager of IKEA India.
Everyone who has worked for IKEA Group for at least five years is qualified for the loyalty programme Tack! – ‘thank you’ in Swedish – where IKEA Group co-workers can receive an extra annual pension payout, in addition to existing pensions. Tack! was introduced in 2013 and since then the IKEA Group has paid out €509 million globally. This far a total of over INR 82 million has been allocated to the co-workers’ pension funds within the programme in India.
IKEA currently has close to 400 co-workers in India and plans to have 15000 co-workers by 2025, of which 50% will be women. The company is hiring 500-700 co-workers for each of its four stores that will open in Hyderabad, Mumbai, Bengaluru and Delhi/NCR cities. Every co-worker gets the same amount regardless of position or salary, and part-time co-workers are rewarded in proportion to their hours worked. In total, 171 co-workers in India can celebrate the fact that IKEA Group gives them INR 150,120 each in appreciation for their loyalty.
“No matter where you work in our organisation you are contributing to our success and continued growth. That is why it is so important for us to share this success equally”
Anna Carin Månsson, Country HR Manager of IKEA India.
The same amount is allocated to all co-workers who have worked at IKEA for at least one full fiscal year. Once they reach their five year anniversary with the company, the accumulated money is paid out to their pension funds. After this, every annual pay-out goes directly into their pension funds.
The global funding is divided between all IKEA Group countries, based on each country’s proportion of the total salary and wages. The payout is dependent on the total results of IKEA Group during the previous financial year.
To further emphasise the importance of co-worker contribution, all IKEA Group co-workers are part of the performance driven bonus programme, One IKEA Bonus. By reaching the financial goals in each market, co-workers can receive approximately one extra month’s salary every year.
About IKEA:
The IKEA vision is to create a better everyday life for the many people and we offer well-designed, functional and affordable, high quality home furnishing, produced with care for people and the environment. There are currently 403 IKEA stores in 49 countries with a sales volume of 38.3 billion euros. 936 million customers visited IKEA stores in FY17 and more than 2.3 billion people visited IKEA online. Our 194,000 co-workers from all over the world are the inner strength of IKEA, sharing fundamental humanistic values of togetherness, humbleness, simplicity, cost- consciousness and common sense.
IKEA has been sourcing from India for over 30 years for its global stores. In India, it currently has 50 suppliers with 45,000 direct employees and 400,000 people in the extended supply chain. The IKEA Group is the first major single brand retailer to get FDI approval and plans to open several stores across the main metro cities in India.