Sweden's IKEA treats its American emplyees well and profits therefrom

[dumpster_baby]

For IKEA stores in America:

1. "The tight-fisted retail industry has been shaped by cutthroat price competition and constant Wall Street pressure that tends to keep wages low and benefits skimpy. Ikea's approach stands out. The company is guided by a philosophy that workers whose basic needs are taken care of tend to be more productive and ultimately more engaged in what they do. Ikea also embraces an egalitarian culture, where executive perks are shunned, everybody's called co-worker, and store managers and sales assistants alike dress in the same uniform: a bright yellow shirt and blue pants."

1. "When it comes to turnover, Ikea North America beats the industry as a whole. At 37 percent, its employee turnover falls below the retail industry rate of more than 60 percent. Some service companies see employee turnover of 100 percent, according to Towers Perrin, a management-consulting firm. "From a customer service perspective, certainly there's an argument to be made that having a stable work force results in a more stable face to the customer," said Don Hay, a principal in the executive compensation practice at Towers Perrin in Chicago." ...."Though it doesn't publish profit data, Geoff Wissman, a vice president at Retail Forward, estimates that its profit margin is around 6 percent, about double what's typical for furniture retailers."

By treating its employees like human beings, the profit at IKEA is twice that of other retailers. If Wal-Mart doubled the pay of its employees, it might also double its profit. Amazing. The implication is simple: by treating its employees in such a radically poor way, Wal-Mart may actually short-change its investors by a factor of two on profit margin. Another company that operates this way -- treating its employees like human beings -- is Costco. See this post for details.


more here:
http://concentrationofwealth.blogspot.com/

[kikiek]

1. That's nice to know thanks. Big opening today in MN, Personally

I cannot bring myself to shop at WalMart, but I will IKEA.

[trotsky]

2. Twin Cities IKEA opens today!

We can only hope that companies like IKEA and Costco will start a trend.

[BiggJawn]

3. Why doesn't Management "Get IT"?

Treat your people like liabilities, and they will BECOME liabilities.

I got a shitty raise this year, after receiving a GLOWING review. No explanation, no apology. and they doubled what they charge the employees for parking. And parking will go up again NEXT year. and the price of everthing else will continue to go up, except what WE can get for our labour.

"This is it. If you don't like it, you're FREE to go find a job elsewhere (heh-heh...)"

You think I'm gonna bust MY nuts this year? Fuck. No.

But the guys in Physical Services got even less. I think that may have something to do with why the power was out for over 5 hours yesterday. "We gotta get this back on!" "Fuck that shit. It's Lunchtime!"

[ronabop]

4. *cough* *gag*

So, okay, cheap ass furniture and goods are being sold by well paid employees.

Anybody stop to consider how well paid the makers of the above goods are?

Sure, paying Wal-Mart employees better would be nice, but it's still exploitation of foreign labor rates.

Share the wealth, but keep all of the exploitation! Woo!

-Bop

[LittleApple81]

6. Cheap ass? I have my house full of Ikea furniture. Had to have it

trucked from another state. Much of it has lasted over 14 years, looks great, clean lines. I did not buy the lowest "rung" of product. That is for kids starting their home.

My kitchen's cabinets are all IKEA. Everybody that comes to my house cannot believe how "clean" and "open" and "happy" my kitchen is.

I am glad IKEA offers a range of products. You can choose what you prefer.

[ocean girl]

8. I've got Ethan Allen and IKEA stuff and they're both well made

and have lasted for years. We order via internet and when we visit family in Baltimore, we spend the day at IKEA. Every time we go into an expensive, designer store in Florida, we see copies of IKEA items for 4 times the price and the quality isn't 4 times better. Can't wait for the Florida store!

[muriel_volestrangler]

7. IKEA's own Social and Environmental Responsibility 2003 report

if you're interested: http://www.ikea-group.ikea.com/corporate/responsible/brochure.html

[qb]

5. Great for IKEA! Walmart is like a cancer in employee relations.

I heard on a call-in show that JC Penney used the "Walmart model" to cut wages and benefits for its employees.

[KharmaTrain]

9. IKEA in Chicago Area Is Very Popular

Both as a place to work and shop. It's kept a lot of people employed in my area while many other jobs are being outsource or "consolidated".

I just don't like that blue and yellow building...