Swedish furniture retailer Ikea group will be offering additional `1.5 lakh each to its Indian co-workers’ pension funding as part of Tack! programme (means thank you in Swedish). Tack! is a loyalty programme to show appreciation for co-workers who continue working for the success of the business.
This year, the company will offer €96 million (about `700 crore) to the global co-workers pension funding.
Ikea currently has close to 400 co-workers in India and plans to have 15,000 co-workers by 2025, of which 50% will be women. The company is hiring 500-700 co-workers for each of its four stores that will be opened in Hyderabad, Mumbai, Bengaluru and the Delhi-NCR.
The Ikea group is the first major single brand retailer to get FDI approval and plans to open several stores across the main metro cities in India. “We are in an exciting phase in India and with the continuous hard work of our co-workers, (we will be) soon moving towards opening our first store in India. Tack! is a way of thanking the efforts and loyalty of our co-workers who are working for the success of Ikea. Our co-workers should know how much we value their experience and commitment and Ikea group in India will give an additional Rs 150,120 each to our co-workers’ pensions this year,” Anna Carin Mansson, country HR manager of Ikea India, said in a statement.
Everyone who has worked for Ikea group for at least five years is qualified for the loyalty programme, where co-workers can receive an extra annual pension payout, in addition to existing pensions. Tack! was introduced in 2013 and since then the Ikea group has paid out €509 million globally. So far,
over `8.2 crore has been allocated to the co-workers’ pension funds within the programme in India.
Every co-worker gets same amount regardless of position or salary. Part-time co-workers are rewarded in proportion to their hours. In total, each of 171 co-workers in India will receive `1.5 lakh in appreciation for their loyalty.
The same amount is allocated to all co-workers who have worked at Ikea for at least one full fiscal year. Once they reach their five year anniversary with the company, the accumulated money is paid out to their pension funds. After this, every annual pay-out goes directly into their pension funds.
There are currently 403 Ikea stores in 49 countries with sales volume of €38.3 billion.
Ikea has been sourcing from India for over 30 years for its global stores. In India, it currently has 50 suppliers with 45,000 direct employees and 400,000 people in the extended supply chain.