6 IKEA Employee Perks & Benefits The Company Offers Its Workforce

As an employer, the cornerstone of your success lies in your team. Offering your employees perks and benefits is more than just a nice-to-have add-on. It's  a powerful statement about your company's culture.

Employee perks and benefits attract top talent and keep them invested and motivated, reducing turnover rates significantly. Additionally, they help you show employees you value them beyond their day-to-day contributions. The right perks let you invest in employee overall well-being and work-life balance.

One company that gets it right regarding employee perks and benefits is IKEA. Being one of the world's largest furniture retailers, IKEA has more than 200,000 employees in 59 countries.

The company attracts talent and retains such a massive workforce by offering employee perks related to physical, social, financial, and mental well-being. Most employees describe IKEA as a place where they feel valued and appreciated. Let's look at some of the IKEA employee benefits that make this possible.

6 IKEA Employee Benefits That Stand Out

Everyone at IKEA – full-time and part-time workers and their dependents – can take advantage of some part of the comprehensive benefits package. Employees are eligible for the whole benefits package if they consistently clock in for at least 20 hours a week! Here are some of the unique IKEA employee benefits.

1. Excellent Co-Worker Discount

One standout perk that IKEA offers is the co-worker discount. Employees enjoy a 15% discount on all merchandise as soon as they start. This discount applies to IKEA's vast range of furniture and IKEA FOOD.

The most unique thing about this co-worker discount is that it isn't confined to one's home country; it's also available abroad. Employees can enjoy the benefits of this discount wherever their travels take them. This discount becomes a lifelong benefit for workers who've been with IKEA for ten years or more.

Now, how does a co-worker discount help attract and retain talent? It's pretty simple. Employees feel valued when they receive tangible benefits like discounts, boosting morale and job satisfaction. 

This attractive fringe benefit also serves as a robust retention tool, as employees look forward to the ongoing savings and the financial flexibility it provides. This makes it a win-win situation for both IKEA and its employees.

2. Longer, Paid Parental Leave

All employees who've worked for IKEA for one year or more are eligible for paid parental leave. Once they have completed one year with the company, IKEA employees are entitled to a three-month paid parental leave. During the initial six weeks of this leave, they receive their full base salary, followed by 50% base pay for the subsequent six weeks.

On the other hand, staff members with three or more years of service are granted up to four months of paid leave, with the first eight weeks paid at their full base salary and the latter half at 50% of their base pay. This is a separate benefit from the readily available six to eight weeks of Short Term Disability for all employees.

Ample parental leave is essential for all workers as it lets them bond with new family members, adjust to their parental roles, and manage the additional responsibilities without work stress. It also boosts an organization's reputation as a family-friendly workplace, which can attract potential employees.

3. Affordable Meal Deals

Proper nutrition promotes physical and mental health. Research shows that taking a lunch break improves the work day for 97% of workers. To ensure employees can afford nutritious meals during their breaks, IKEA has set up co-worker restaurants separate from their customers.

Employees can savor a hot meal, selecting from a weekly rotating menu of Swedish specialties or classic Belgian dishes, all at affordable prices. Every IKEA staff restaurant offers Swedish meatballs and other delicious meals for as little as $3 or $4, making wholesome food accessible to all co-workers.

4. Great Insurance Coverage

Each IKEA co-worker automatically enjoys various insurance coverages for hospitalization and private accident, dental, vision, and life insurance. IKEA also extends its care to employees' pets, offering pet insurance accessible globally. 

It covers veterinary care for their beloved furry and scaly companions, ensuring they receive the best care when needed. Additionally, IKEA supports employees' futures by contributing to their pensions through their group insurance plan.

Offering insurance demonstrates IKEA's commitment to employee welfare and aids in minimizing absenteeism. A healthy workforce is more likely to have consistent attendance and increased productivity. Furthermore, physically fit employees are less susceptible to injuries, ensuring fewer missed workdays.

5. Remarkable Tack! Loyalty Program For Co-Workers

To appreciate its 200,000+ workers, IKEA has designed an exclusive loyalty program named "Tack!" (Swedish for "thanks"). The standout feature of this program is its inclusivity. 

Regardless of department, role, or salary, every eligible co-worker in all countries receives the same amount. This amount is an additional contribution towards their pension, further securing their future.

Such a program fosters a supportive work environment and nurtures employee loyalty. It promotes equality and fairness within the organization, as everyone gets an equal share regardless of their position. 

In the long run, it can significantly reduce turnover rates and enhance your business's reputation, making your organization a sought-after workplace.

6. On-The-Job Training

Training is an often ignored but essential aspect of employee satisfaction. IKEA provides its co-workers with extensive on-the-job training programs to enhance their skills and knowledge.

The company ensures quick employee adaptation through practical training and classroom courses. If an employee is ambitious and sees a future in IKEA's leadership or global opportunities, IKEA fuels their journey with various courses and programs.

Investing in employees' growth shows that you value them and benefits the organization. Well-trained employees are more likely to take on new challenges and contribute positively towards the company's growth. They become better equipped to handle their responsibilities effectively, improving job performance.

Final Thoughts

Employee benefits are not merely perks but critical tools for fostering a positive work culture, boosting morale, and ensuring businesses' competitiveness. If you're looking for inspiration for your benefits program, IKEA's offerings are great to look at. 

The company’s emphasis on extensive on-the-job training underscores its investment in employee growth, making it an employer of choice. IKEA’s other unique perks like a lifelong 15% discount after ten years, up to four months' paid parental leave, and the inclusive "Tack!" pension contribution scheme, enhance employee well-being and loyalty. 

You can tweak IKEA’s perks to suit your organizational needs and realize your goals. Alternatively, use platforms like Perkup to amplify your benefits program. We offer a robust rewards and recognition program to celebrate employee achievements and reinforce a culture of appreciation.