Ikea Reduces Employee Turnover with Wage Increases and Flexible Work Options
The Swedish retailer's strategy includes higher pay, better benefits, and innovative technologies to retain staff.
Overview
- Ikea's global quit rate dropped from 22.4% in 2022 to 17.5% in 2024.
- The company faced high turnover costs, losing $5,000 per departing employee.
- New measures include subsidized childcare, remote work options, and an AI tool to predict turnover.
- Turnover in the US fell from one-third to one-fourth of employees within a year.
- Challenges remain in Japan and France despite overall improvements.