Example of HRM strategy

Erdem BaysalMirna Babović

IntroductionA Swedish based retail chain which deals in furniture and house decor

items

Has branches in around 41 countries

Working Mother magazine’s annual list of the “100 Best

Companies for Working Mothers” (four consecutive

years)

Ranked 20th in 'The World’s Most Attractive Employers 2011' in the Universum Awards, an employer

branding event

Training magazine’s annual “Top 100” ranking of companies that

excel at human capital development (four consecutive

years)

FORTUNE’s “100 Best Companies to Work For” list (three

consecutive years)

VISION

To create a better everyday life for the many people.

Major goals of company culture

• The creation of simple and essential

line of furniture

• The development of low priced & high

diversified line of products

• The fostering of client & employee

relationship

The Human Resource Idea

To give down-to-earth, straight-forward

people the possibility to grow, both as

individuals and in their professional roles,

so that together we are strongly

committed to creating a better everyday

life for ourselves and our customers.

Recruiting Policy

• Focus on values and cultural fit rather

than skills and experience

• Standard questionnaire is used for

interviewing

• Additional assessment for leadership

positions

• Value-driven recruitment system

Example – Assemble your future• Recruitment of around 300 people for one of

IKEA’s Australia units

• They put in Ad “Assemble your future”

leaflets in the furniture boxes that they sold

Training

• Co-workers who have mastered their current

job are encouraged to seek new challenges

• Job enlargement/enrichment, changing the

Job scope/location

• Annual development talk to discuss and

outline career paths

• On-the-job training complemented by

traditional classroom courses

• A wide range of web-based training activities

for all aspects of IKEA operations

Compensation

• IKEA has developed global,

mandatory guidelines for

compensation and benefits

• Each country must offer the same

benefit structure for all co-workers in

the country

• Benefits are to be based on core IKEA

values as well as local laws and

market conditions

Turnover Ratio

• 76 % in 2001

• 56% in 2002

• 35% in 2003

• Turnover ratio is almost half of the

industry

• Lower recruiting and training costs

Employee Feedback

• Employee satisfaction surveys

• Suggestion schemes

Motivation Enhancing

• One year development adventure

program

• Travel opportunities

• Leadership responsibility

• Incentive system

• Diversity

IKEA Fit Quiz

IKEA Trainee program

Conclusion• IKEA’s innovative human resource

management practices have helped

build a strong and nurturing culture

that promotes diversity and creativity

• In an industry characterized by high

turnover, their employee friendly

policy has made IKEA a preferred

employer in the retail sector

Conclusion cont‘d

• Working in line with strategy, it‘s HRM

practices have helped in sustaining

IKEA’s growth

• Value driven company and

empowerment of employees as great

strategic and business concepts

Thank you for your attention!