IKEA to Give Staff €100m Pension Contribution in New Loyalty Programme
Retail giant IKEA is to put €100m into its workers' pension schemes across the globe as part of a new loyalty programme.
The Swedish company, well-known for its flat-pack furniture, said the move is part of a scheme which will benefit 136,000 employees who work across 26 countries.
The programme called "Tack!" – Swedish for "thank you" - was unveiled to IKEA's 7,200 workers in the UK and Ireland.
The programme will reward every employee who has been with IKEA for more than five years with an annual contribution to their individual pension plans, assuming that pre-agreed global sales targets are reached.
IKEA said the contribution to the programme in the first year will be a staggering €100m (£83m, $136m).
"The introduction of the Tack! Programme has been inspired by Ingvar Kamprad's wish to share the success of the IKEA Group with the co-workers," said Peter Agnefjall, chief executive officer and president of IKEA.
He added: "Everyone, no matter what position they hold at the IKEA Group, contributes to our growth and is important to our continued success."
The scheme will see full time workers receive the same amount, regardless of their department, their position or salary, with part-time workers receiving a proportional amount dependent on their hours.
The annual pay-outs will go directly into individual pension plans, to be accessed at retirement age.
IKEA anticipated that each qualifying full-time employee in all 19 of its UK and Ireland stores could receive a lump sum of approximately €598 into their pension pot next year -equivalent to nearly two week's pay for workers.
With more than 55% of the UK workforce at five or more years' service, nearly 4,000 workers are eligible for the first pay-out in September 2014.
"We want to recognise the contributions of our staff and those that show loyalty to the company," said Pernille Haglid, a HR manager at IKEA UK and Ireland.
The launch of "Tack!" follows the introduction of the company's "One IKEA Bonus" programme, an annual performance-related bonus system that is linked to individual salaries.
The performance-related bonuses for 2014 will be announced at the end of the financial year and due to positive sales growth already seen this year, the company said workers in the UK are currently on track to make the bonus.
© Copyright IBTimes 2024. All rights reserved.