Leading Swedish home furnishings retailer IKEA said that it will have 15,000 co-workers in India by 2025, of which half would be women.
IKEA Group also has announced that it will be offering additional Rs 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 (Rs 700 crore) 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 Rs 150,120 each to our co-workers’ pensions this year,” says Country HR Manager of IKEA India, Anna Carin Månsson.
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 Rs 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 15,000 co-workers by 2025, of which 50 per cent 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 Rs 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”, says Anna Carin Månsson.
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.