IKEA thanks co-workers for bumper year with €200m contribution to global employee pension schemes

IKEA thanks co-workers for bumper year: €200 million to go towards co-worker pension schemes globally

IKEA thanks co-workers for bumper year: €200 million to go towards co-worker pension schemes globally

Home furnishing company IKEA has announced the first global funding for “Tack!”, the IKEA Group loyalty programme. The total funding for 2014 amounts to €200m.

Launched in December last year, the programme rewards everyone who has been with IKEA for over five years with an annual contribution to their individual pension plans, assuming that pre-agreed global sales targets are reached. To kick-start the programme, the IKEA Group made a one-time initial contribution of €100m and for financial year 2014 a further €100m has been allocated.

Gillian Drakeford, IKEA UK and Ireland country manager, said: “Tack! – Swedish for thank you – is inspired by IKEA founder, Ingvar Kamprad’s wish to share the success of the IKEA Group with our co-workers. With this programme we want to show appreciation and gratitude for our co-worker’s loyalty and contribution to the success of IKEA. Everyone, no matter what position we hold at IKEA, is important for our continued growth.”

All eligible co-workers in the UK will receive the same proportional amount in relation to hours worked, regardless of unit, position or salary level. This means each qualifying full-time employee will receive a lump sum of £1,229 into their pension pot, equivalent to more than one month’s pay for co-workers on an hourly start rate of £7.13.

With over 47% of UK co-workers at five or more year’s service, over 3,700 co-workers are eligible for the first payout. For those who have worked at IKEA for a full financial year but not yet reached five years, an individual allocation will be set aside and paid into their pension plans after the completion of five consecutive years of employment.

In addition to Tack!, this year all co-workers in the UK will also receive a bonus of up to 10% of their annual salary following an 11% sales increase in financial year 2014. The One IKEA Bonus programme was launched in September 2013 and is an annual performance-related bonus system linked to individual salary and store performance. This means a full-time co-worker on an hourly start rate of £7.13 will receive an extra £1,446, based on the best performing unit.

Drakeford said: “We also want to thank and reward our co-workers for what has been a fantastic year of growth here in the UK. This growth did not come by itself but through the contribution of every one of our co-workers working together towards our business goals.”

“We believe that Tack! and One IKEA Bonus, together with our base salary forms an extremely strong compensation offer for our co-workers, making IKEA an even more attractive place to work.”