Home furnishings giant in big expansion of parental leave

In a move that is likely to help it attract new talent — and hold on to existing employees — Ikea U.S. has announced one of the most generous and inclusive parental leave programs in the U.S. retail industry.



Effective Jan. 1, Ikea will provide all its 13,000 U.S. salaried and hourly employees who are expanding their families — including mothers, fathers and adoptive and foster parents — with up to four months of paid parental leave.



Ikea’s new program, which follows expanded leave programs that have taken hold with tech companies like Netflix, is particularly noteworthy in that it applies not only to the chain’s salaried employees, but its hourly workers as well.



Ikea had previously new moms five days of paid leave in addition to six to eight weeks of paid disability leave. Under the new program, employees with three or more years' tenure at Ikea can take up to four months of paid leave, receiving 100% of their base wage for the first eight weeks and 50% for an additional eight weeks.



Employees who have worked at Ikea for at least one year can take up to three months of paid leave to be with their family, receiving 100% of their base wage for the first six weeks of parental leave and 50% for an additional six weeks.



Workers will still be eligible for short-term disability under the new program.



Ikea said its expanded policy was introduced to ensure co-workers have the opportunity to bond with their children and connect as a new family.



"This benefit, which applies to all parents, will give our co-workers the opportunity to spend more time with their families when welcoming a child,” said Lars Petersson, president, Ikea U.S. “Our co-workers are our most important resource, which is why we continue to invest in helping them reach their dream."



In addition, Ikea also introducing a sabbatical program for co-workers to take time “to refresh and engage in personal and professional growth and development.”