Ikea to make one-off €100m pension contribution for performance

Ikea Group is to pay €100 million (£83.6 million) in pension contributions in the first year of its new reward programme.

The programme, Tack!, which is Swedish for thank you, aims to reward employees who have been with the home furnishing retailer for more than five years with an employer contribution to their Retirement Income Scheme, which is part of a Legal and General master trust.

Eligible employees from Ikea Group’s 19 stores in the UK and Ireland will receive approximately £500 into their pension pot regardless of their department, position or salary. Part-time staff will also receive an amount, dependent on their hours.

The payment is also linked to Ikea Group reaching pre-agreed global sales targets.

The launch of Tack! follows the introduction of the annual performance-related bonus programme, which is linked to an individual’s salary.

In addition, all 7,200 UK and Ireland staff are to receive a Christmas gift of Virgin Experience vouchers worth £50 each.

Pernille Haglid, UK and Ireland HR manager at Ikea, said: “Employees are the inner strength of our organisation and we strive for long-term relationships with the people that are so important to our success.

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“We want to recognise the contributions of our employees and those that show loyalty to the organisation.

”Both Tack! and the bonus programme strengthen Ikea’s position as a great place to work in the UK.”