Ikea UK is to increase the rates of pay for 7,300 employees through the introduction of the living wage and proportionate pay rises for team leaders.
The retailer is to implement the Living Wage Foundation’s voluntary living wage rate of £8.25 an hour and £9.40 in London. The pay increase will come into force on 1 April and benefit 6,100 staff members.
Ikea UK will also introduce a proportionate pay increase for 1,200 team leaders.
The changes form part of the organisation’s wider efforts to ensure that employees receive the right level of pay, and are on the right contract and schedule. This includes a new policy to give all customer-facing staff one weekend off in four.
Pernille Hagild, country HR manager at Ikea UK, said: “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 look 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.”