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IKEA's retailer's solved global 'unhappy worker' crisis by raising salaries

fortune.com

11–20 of 226 posts

Re: IKEA's retailer's solved global 'unhappy worker' crisis by raising salaries

#11
Can someone explain to me why corporate management seems unable to grasp the concept of properly paying and providing benefits for their employees to increase retention and have more successful hiring?

Like...is it actual incompetence? Or do they know it's the answer, but just don't want to do it?

I just can't grasp why a manager would refuse to provide proper pay and benefits and then get a Surprised Pikachu face when employees don't stick around.

Re: IKEA's retailer's solved global 'unhappy worker' crisis by raising salaries

#12

Can someone explain to me why corporate management seems unable to grasp the concept of properly paying and providing benefits for their employees to increase retention and have more successful hiring? Like...is it actual incompetence? Or do they know it's the answer, but just don't want to do it? I just can't grasp why a manager would refuse to provide proper pay and benefits and then get a Surprised Pikachu face wh…

Because the dollars are easy to measure, but the employee happiness and other fuzzier metrics aren't.

Just like we've known for a while that getting software developers their own offices increases productivity (but costs money/doesn't look trendy), or that getting rid of senior aeronautical engineers might lower quality over time (but saves money).

Re: IKEA's retailer's solved global 'unhappy worker' crisis by raising salaries

#13

Can someone explain to me why corporate management seems unable to grasp the concept of properly paying and providing benefits for their employees to increase retention and have more successful hiring? Like...is it actual incompetence? Or do they know it's the answer, but just don't want to do it? I just can't grasp why a manager would refuse to provide proper pay and benefits and then get a Surprised Pikachu face wh…

This isn't a lack of understanding. It's the principal-agent problem.

Non-founder executives are usually rewarded for short term results. They'll deliver on this even if it means laying off the entire Python language team in the midst of an AI boom. The market is bad at distinguishing these growth hacks for sustainable business, so they'll see 4% quarterly growth and pile on under the assumption that the hockey stick is going up.

By the time reality catches up management has already cashed in their chips.

Re: IKEA's retailer's solved global 'unhappy worker' crisis by raising salaries

#15
post #7

OP's link should really include the full title: Ikea’s boss solved the Swedish retailer’s global ‘unhappy worker’ crisis by raising salaries, introducing flexible working and subsidizing childcare Cutting it off there just makes it seem like ikea thinks "more money = happy workers" when in reality it is more nuanced than that.

Subsidizing childcare is also "more money", but only for some workers. If the others don't notice or don't care that they're getting paid less for the same work that's great for the company. I am in favor of flexible work arrangements, and I have no idea if those have costs to the company, or how much more you'd need to pay the workers to accept the less flexible arrangements.

[deleted]

Re: IKEA's retailer's solved global 'unhappy worker' crisis by raising salaries

#16

Can someone explain to me why corporate management seems unable to grasp the concept of properly paying and providing benefits for their employees to increase retention and have more successful hiring? Like...is it actual incompetence? Or do they know it's the answer, but just don't want to do it? I just can't grasp why a manager would refuse to provide proper pay and benefits and then get a Surprised Pikachu face wh…

Managers are balancing multiple competing issues. Yes staff happiness and retention is important, but there is going to be some staff turnover no matter what. At the same time budgets need to be managed - managers simply can't pay staff whatever they please, businesses need to be functional and profitable.

Re: IKEA's retailer's solved global 'unhappy worker' crisis by raising salaries

#17

Can someone explain to me why corporate management seems unable to grasp the concept of properly paying and providing benefits for their employees to increase retention and have more successful hiring? Like...is it actual incompetence? Or do they know it's the answer, but just don't want to do it? I just can't grasp why a manager would refuse to provide proper pay and benefits and then get a Surprised Pikachu face wh…

When i worked in a small business,a factory, the boss, having a hard time getting people to work for hime(due to salary, benefits and work environment) explained it by "people just don't want to work".

Why? Extroverts usually blame the world, introverts look for the reason in themselvs. Many managers are extroverts.

Re: IKEA's retailer's solved global 'unhappy worker' crisis by raising salaries

#18
post #4

Earlier quoted context omitted.

there's always something to complain about, isn't there?

If they want to be a pretend charity they have to pretend to act like one.

Merely acknowledging potential benefits from non-race-to-the-bottom salaries is "pretend charity" now?

Re: IKEA's retailer's solved global 'unhappy worker' crisis by raising salaries

#19
post #9
post #7

Earlier quoted context omitted.

Subsidizing childcare is also "more money", but only for some workers. If the others don't notice or don't care that they're getting paid less for the same work that's great for the company. I am in favor of flexible work arrangements, and I have no idea if those have costs to the company, or how much more you'd need to pay the workers to accept the less flexible arrangements.

For the people that want the childcare, it’s better than more money, because it’s tax free

Can company provide a choice for employees where they can either get facilities or a raise?

Re: IKEA's retailer's solved global 'unhappy worker' crisis by raising salaries

#20
post #7

OP's link should really include the full title: Ikea’s boss solved the Swedish retailer’s global ‘unhappy worker’ crisis by raising salaries, introducing flexible working and subsidizing childcare Cutting it off there just makes it seem like ikea thinks "more money = happy workers" when in reality it is more nuanced than that.

Subsidizing childcare is also "more money", but only for some workers. If the others don't notice or don't care that they're getting paid less for the same work that's great for the company. I am in favor of flexible work arrangements, and I have no idea if those have costs to the company, or how much more you'd need to pay the workers to accept the less flexible arrangements.

Look, I'm a DINK, don't have kids, never plan to have kids, don't even like kids. But child care is important to both the parents and society. Not subsidizing child care often means one parent has to leave the workforce, and that's almost always worse off for everyone than if they were able to afford child care and can contribute
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