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IKEA to contribute €100 million to workers' pension schemes as part of new loyalty programme

Home furnishing giant IKEA has launched a new employee loyalty programme which will see £100 million contributed to worker’s pension schemes in its first year.

GENERAL MERCHANDISE

IKEA to contribute €100 million to workers' pension schemes as part of new loyalty programme

Home furnishing giant IKEA has launched a new employee loyalty programme which will see £100 million contributed to worker’s pension schemes in its first year.

The new programme called “Tack!”, which means “thank you” in Swedish, was unveiled to IKEA’s 7,200 workers in the UK and Ireland this morning and will apply to all of the retailer's  136,000 workers in 26 countries.

The scheme will reward all employees who have worked for the business for over five years by making an annual contribution to their individual pension plans if pre-agreed global sales targets are met. In the first year of the scheme, the contribution to the programme will be €100 million.

Full time workers will 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 payouts will go directly into individual pension plans which will be accessed at retirement age.

IKEA said it anticipates that each qualifying full-time employee in all 19 of its UK and Ireland stores could receive a lump sum of approximately £500 into their pension pot next year which is the equivalent to nearly two week’s pay. With over 55% of UK co-workers at five or more years of service, nearly 4,000 workers will be eligible for the first payout in September 2014.

The launch of “Tack!” follows the introduction in September this year of the “One IKEA Bonus” programme, an annual performance-related bonus system linked to individual salary. The retailer said the performance-related bonuses for 2014, which will be announced at the end of the financial year, could see an employee on a start rate of £6.99 per hour earning up to an extra £1,535 based on the maximum payout.

Peter Agnefjall, chief executive and president of the IKEA Group said: “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. Everyone, no matter what position they hold at the IKEA Group, contributes to our growth and is important to our continued success.”

Pernille Haglid, IKEA UK and Ireland HR manager added: “The co-workers are the inner strength of our company and we strive for long-term relationships with the people who are so important to our success. We want to recognise the contributions of our co-workers and those that show loyalty to the company. Both Tack! and the One IKEA bonus programme strengthen IKEA’s position as a great place to work in the UK.”

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