Ikea raising U.S. minimum wage to $16 per hour; adds more benefits
Another retailer is increasing its minimum wage and adding benefits as it looks to attract workers in a tight labor market.
On the same day that Macy’s announced a wage hike and increased benefits, Ikea U.S. said it would raise its starting wage for U.S. workers to $16 per hour, with some hourly wages starting at $17 or $18 depending on location. The increase is effective starting on Jan.1, and will apply to all U.S. full-time, part-time, temporary, and seasonal employees. With the increase, Ikea said its average hourly wage will increase to $20.
In addition, the Swedish furniture giant has enhanced its comprehensive benefits package to include a minimum of five weeks of paid time away from work for all employees, education assistance, back-up child and adult care. It also has added more inclusive health care benefits.
Ikea said a majority of U.S. employees will also receive the “One IKEA Bonus,” a performance-based payout totaling $76 million. This is in addition to a one-time Ingka global appreciation gift by Ikea parent Ingka Group of $17 million to be distributed among all U.S. workers, which was announced in October.
Ikea U.S. had one of its most successful years to date in its most recent fiscal year (ended Aug. 21, 2021), with nearly $5.89 billion in total sales of goods and services, a 25% increase from the previous year.
“Every day I am humbled by our 17,000 co-workers, each of whom makes our success as a company possible and contributes to our commitment to creating better homes, better communities, and a better planet,” said Javier Quiñones, CEO and chief sustainability officer, Ikea U.S. “I am proud of everything we have accomplished over the past year, and we will continue to seek opportunities to grow our compensation and benefits offer and share our success with our co-workers.”
In addition to announcing the increased starting wage and enhanced benefits, Ikea U.S. released its 2021 Annual Summary, highlighting how the company continued its journey to transform the way it does business to become more accessible and sustainable for the many.
Aligned with a focus on an enhanced omnichannel experience for customers, e-commerce represented 21.8% of sales in 2021. The company said it has a solid plan to continue to grow its business by bringing new Ikea formats to cities. Most recently, the company announced plans for two “planning studios” in the Los Angeles area.
[Read More: Macy’s hikes minimum wage; to offer debt-free college tuition]