IKEA – Introducing the Living Wage

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IKEA – Introducing the Living Wage is an investment we are incredibly proud of
By Katarina Verdon Olsson, Store Manager at IKEA Manchester (Ashton-Under-Lyne)

Since IKEA became the largest accredited Real Living Wage employer in retail  in 2016, the Greater Manchester Living Wage Campaign has worked with the local store in Ashton-Under-Lyne to promote their good work, and to encourage other employers to follow in their footsteps. Here the local store manager Katarina Verdon Olsson writes about the benefits to co-workers and the business as a whole.

As a values-driven organisation, we believe in providing a meaningful wage to our co-workers that supports the cost of living and this is why we were the first large retail employer to commit to paying the Living Wage and becoming an accredited member of the Living Wage Foundation.

On 1 April 2016, IKEA UK introduced the Living Wage – as defined by the Living Wage Foundation – for all of our co-workers. Today 9,000+ co-workers of all ages across the UK benefit from earning above the statutory National Living Wage. On a local level this has impacted the lives of 300+ co-workers living and working in the Greater Manchester area at the IKEA Manchester store in Ashton-Under-Lyne.

This move was part of a wider transformation of basic co-worker conditions introduced globally by IKEA to ensure that co-workers have the right level of pay, the right contract and an appropriate schedule.

Introducing the Living Wage is an investment we are incredibly proud of, particularly as our co-workers have told us about the positive benefits this has had on their lives. Below are some stories from our co-workers working at the IKEA Manchester store who have shared how the Living Wage increase has impacted them:

“My daughter loves to dance and is passionate about many different types of dance such as ballet, tap and modern. The increase in the living wage meant that we could afford more lessons and the cost involved with performances. The extra money also meant that I could take my family on weekends away more often within the UK.”
Tim (Recovery Co-worker)

“The increase in the living wage meant I could save more money for my dream wedding in Disneyland in Florida. I had also been secretly saving for a honeymoon in the Caribbean which I surprised my girlfriend with the news before we jetted off to the US for our wedding in November last year.”
Danielle (Kitchens co-worker)

Living Wage week photo for GM Poverty Action

IKEA workers front and centre at our 2016 Living Wage Week event

Implementing the Living Wage Foundation’s recommended rates of pay is not only the right thing to do by our co-workers and our values but it also makes good business sense. As we continue to grow in the UK, motivating and retaining our co-workers, as well as attracting new co-workers, becomes increasingly important. We also believe that a team with good compensation and working conditions is in a better position to provide a great experience to our customers.

Katarina Verdon Olsson IKEA article for GM Poverty Action

Katarina Verdon Olsson

As well as being good for society, we have also seen business benefits to paying the real Living Wage. At IKEA Manchester, since adopting the Living Wage in 2016 we have not only seen a decrease in staff turnover by -12%, we have also seen the improvement in the co-worker engagement survey (+3.7%) and customer experience key performance indicators.

We encourage other businesses to explore what the benefits of paying the real Living Wage would mean for their staff, business and the Greater Manchester area.

 

 


Can you become an accredited Real Living Wage Employer? It’s easier than you may think –
please fill out this form to start the process and join over 150 Greater Manchester-based employers in committing to paying your workers enough to live on.

 

i3oz9sIKEA – Introducing the Living Wage