Ingka Group, which owns retailer Ikea, has announced that it will pay out a €311 million employee bonus based on good results this financial year, where revenue grew by 5.4%.
The group’s global annual performance-driven bonus programme rewards employees when they meet or exceed specific business goals. The bonus total varies each year and is based on the performance of the business unit, retail country and market area.
In addition, Ingka Group will pay out a total of €103 million through its global Tack! loyalty pension programme; Tack means ‘thank you’ in Swedish. The funding is divided between all 31 countries in which the group operates.
Each full-time employee who has worked for the group for five years or more will receive the same amount of extra contribution to their pension fund, regardless of their position or salary level. Part-time members of staff will receive a proportional contribution in relation to the hours they have worked.
Ulrika Biesèrt, people and culture manager for Ingka Group, said: “In an era marked by increased cost of living, with stress and mental health issues on the rise around the world, and the looming challenges of climate, geopolitical and technological change, it’s more important than ever to recognise that the success of Ikea depends on engaged co-workers who strive every day to create a better everyday life for the many people. When co-workers thrive, customers are happy, and Ikea grows.
“We want all co-workers to stay and grow with Ikea, and to know how much we value their long-term contribution, entrepreneurship, dedication, and commitment. This is the right thing to do and it’s good for business.”
Including this year’s figures, Ingka Group has paid out €1.4 billion in bonus payments since 2017 and €930 million through its Tack! loyalty pension programme since 2014.