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Thread: Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

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    Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

    Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

    Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

    WASHINGTON -- A year after it first announced a major minimum wage hike in its U.S. stores, Ikea said Wednesday that it plans to implement another nationwide raise to its wage floor next year, bringing the average store's starting pay to nearly $12 per hour.
    Rob Olson, chief financial officer for Ikea U.S., told The Huffington Post that the company is already reaping dividends from its decision to hike the wage floor and to factor in the local cost of living in doing so.

    "We're very pleased so far," Olson said.

    So what types of benefits has Ikea seen?

    For one, less turnover. Although it's only been six months since the raises went into effect, Olson said Ikea is on pace to reduce turnover by 5 percent or better this fiscal year. Holding onto employees longer means the company is spending less on recruiting and training new replacements.
    Ikea is also attracting more qualified job seekers to work at its stores, according to Olson. Pay for retail sales workers in the U.S. is generally very low, with an average industry wage of just $12.38 per hour, according to the Bureau of Labor Statistics. But Ikea's average store wage is heading north of $15. After its living wage announcement last year, the company opened two new locations -- one in Merriam, Kansas, and another in Miami -- and the higher wages (and attendant publicity) likely helped the company lure more candidates.
    "At both of those stores, the applicant pool was fantastic," Olson said.
    So there goes the conservative assertion, “better your skills if you don’t want minimum wages”.

    I told you guys that the wave was coming.


    Happier and more responsible employees with better wages; who'd a thunk ti?
    You can dance without a lawyer

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    Re: Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

    Quote Originally Posted by jet57 View Post
    Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

    Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again



    So there goes the conservative assertion, “better your skills if you don’t want minimum wages”.

    I told you guys that the wave was coming.


    Happier and more responsible employees with better wages; who'd a thunk ti?
    It might be a wave of sorts. I saw something similar happen to stabilize and motivate the sales force by banks in London. Competition did the same and fluctuation came back and banking fed on other sectors for talent.
    Don't confuse market decision making with the socialist desires just because they superficially seem similar.

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    Re: Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

    Good. Swedish companies tend to have a more egalitarian attitude towards worker pay and the role of a corporation in general though, so no matter how high the "wave" of wage hikes are, Ikea is going to be towards the top.
    Social democrat is no longer an accurate description of my views.

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    Re: Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

    Quote Originally Posted by jet57 View Post
    Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

    Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again



    So there goes the conservative assertion, “better your skills if you don’t want minimum wages”.

    I told you guys that the wave was coming.


    Happier and more responsible employees with better wages; who'd a thunk ti?
    IKEA is basing it's future raise on 6 months of data on reduced turnover (employees leaving) because it's down 5%. Not really a sign of "success" yet. It would also behoove you to look at IKEA's financial statements.

    IKEA pays less then 800m in euros (less then $1b) in corporate taxes on $29.3b euros (or $32.71b). Wal Mart pays about $8b in corporate taxes.

    Also IKEA has to be VERY VERY careful. US market only accounts for 3% of their revenue, while Europe accounts for 57%. Any massive change in currency exchange rates which would have the Euro fall closer to parity to the dollar, it would blow up IKEA's ability to pay the increased wages here.
    Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats. It is inaccurate to say that I hate everything. I am strongly in favor of common sense, common honesty, and common decency. This makes me forever ineligible for public office. H.L Mencken

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    Re: Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

    Quote Originally Posted by SocialDemocrat View Post
    Good. Swedish companies tend to have a more egalitarian attitude towards worker pay and the role of a corporation in general though, so no matter how high the "wave" of wage hikes are, Ikea is going to be towards the top.
    IKEA isn't Swedish, hasn't since the 1970s when IKEA and it's ownership fled to Switzerland to avoid Swedish taxes. Today it's HQ in Netherlands and has a unique structure in which different parts are incorporated in Netherlands, Luxembourg, and Liechtenstein. Basically IKEA is registered as a charity in the Netherlands and pays only 3.5% in taxes. It's the worlds biggest tax fraud in the world.
    Last edited by austrianecon; 06-25-15 at 05:26 AM.
    Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats. It is inaccurate to say that I hate everything. I am strongly in favor of common sense, common honesty, and common decency. This makes me forever ineligible for public office. H.L Mencken

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    Re: Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

    Quote Originally Posted by joG View Post
    It might be a wave of sorts. I saw something similar happen to stabilize and motivate the sales force by banks in London. Competition did the same and fluctuation came back and banking fed on other sectors for talent.
    Don't confuse market decision making with the socialist desires just because they superficially seem similar.
    There are NO socialist desires here.

    jeeez
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    Re: Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

    Quote Originally Posted by austrianecon View Post
    IKEA is basing it's future raise on 6 months of data on reduced turnover (employees leaving) because it's down 5%. Not really a sign of "success" yet. It would also behoove you to look at IKEA's financial statements.

    IKEA pays less then 800m in euros (less then $1b) in corporate taxes on $29.3b euros (or $32.71b). Wal Mart pays about $8b in corporate taxes.

    Also IKEA has to be VERY VERY careful. US market only accounts for 3% of their revenue, while Europe accounts for 57%. Any massive change in currency exchange rates which would have the Euro fall closer to parity to the dollar, it would blow up IKEA's ability to pay the increased wages here.
    But US revenue is their market and by taking better care of their employees, Americans will be more likely to shop there.
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    Re: Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

    Quote Originally Posted by jet57 View Post
    But US revenue is their market and by taking better care of their employees, Americans will be more likely to shop there.
    Why? I don't see a correlation between minimum wage worker base and sales traffic.

    If Burger King changed their minimum wage to $20.00, would you start eating there as opposed to going to McDonalds, Wendys, Taco Bell, KFC, and the like?

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    Re: Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

    Quote Originally Posted by Samhain View Post
    Why? I don't see a correlation between minimum wage worker base and sales traffic.

    If Burger King changed their minimum wage to $20.00, would you start eating there as opposed to going to McDonalds, Wendys, Taco Bell, KFC, and the like?
    I might go in in there from time to time. I'd also tell the managers that I support the company taking better care of their people. In and Out Burger's starting pay has always been $10 an hour, so now maybe they will raise wages as well.
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    Re: Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

    Quote Originally Posted by austrianecon View Post
    IKEA pays less then 800m in euros (less then $1b) in corporate taxes on $29.3b euros (or $32.71b). Wal Mart pays about $8b in corporate taxes.
    Yeah, but WMT is paying that $8B in taxes on $458B in revenue.

    Ikea's effective rate is 2.75% while Wal-Mart's is 1.7%.

    So the "burden" of "high U.S. corporate taxes" isn't really a factor here.
    “Now it is not good for the Christian’s health to hustle the Aryan brown,
    For the Christian riles, and the Aryan smiles and he weareth the Christian down;
    And the end of the fight is a tombstone white with the name of the late deceased,
    And the epitaph drear: “A Fool lies here who tried to hustle the East.”

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