All Ikea furniture store workers can look forward to earning an average wage of $10.76 per hour when the company raises hourly compensation on Jan. 1, 2015.
The change will ultimately assist 50 percent of the company's employees and modify the retailer's former structure, in which employees were paid based on the competitive state of a municipality's economy, according to company officials.
To further help employees make a living as part of an overall worker improvement plan, the retailer has added an extra $3.51 from the federal government's current $7.25 minimum wage for the 17 percent increase. The supplemental income, which takes housing, food, medical, transportation and other taxes into account, is not expected to up prices on the company's products, and will vary based on the cost of living in each region. Some of these locations already pay higher-than-average minimum wages.
Employees at 38 of the company's current U.S. retail locations, and any built before the end of 2015, will implement the new change.
The furniture store currently owns five distribution centers, two service centers and a manufacturing facility.
Ikea's new TACK! loyalty program also caters to employees' retirement by contributing money to savings and a 401k plan. Every worker is also eligible for the One Ikea Bonus program, which gives employees yearly incentives for performing well in the workplace.
"At Ikea, we are guided by our mission 'to create a better everyday life for the many people,' a vision that includes our co-workers, customers and the communities impacted by our business," said Rob Olson, Ikea U.S.' acting president and CFO. "The transition to the new minimum hourly wage structure is not only the right thing to do, it makes good business sense. We are basing our wages on our co-workers and their needs, rather than what the local employment market dictates. Our focus is to ensure that Ikea is a great place to work by providing an environment that develops our co-workers and also meets our customers' expectations. All of this contributes to our business success."
