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

fortune.com

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

#41

Post by mashlol »

grecy wrote: post #9
jp57 wrote: 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

It's better for the company - they can pay less and the employee gets the same equivalent amount in their pocket.

E.g. if the company were going to pay $2k extra but it would be taxed $1k, they would have to pay $3k to get the equivalent "happiness" boost. The employee gets $2k / year either way.

$2k tax free -> $2k in your pocket

$3k + $1k tax -> $2k in your pocket

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

#42

Post by Red_Leaves_Flyy »

blargey wrote: post #18
kevin_thibedeau wrote: post #5

Earlier quoted context omitted.

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?

They’re only doing what other intelligently managed orgs are: defensive retention via compensation. With the labor force how it is, orgs that prey on precarious workers are in a game of musical chairs. Where do you want to be when the music ends?

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

#43

Post by eropple »

Iulioh wrote: post #10
mensetmanusman wrote: post #8

Earlier quoted context omitted.

What is a primordial forest, and why is its wood so easy to break when in the form of a cabinet?

A lot of high end ikea stuff is REALLY good, it's not all honeycomb crap. Honestly it's ikea or luxury stuff, anything else does not make sense. You can't beat ikea quality and quality at any price point.

As somebody who makes luxury furniture, the rest of my house is IKEA.

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

#44

Post by kermatt »

bhickey wrote: post #13
Sohcahtoa82 wrote: post #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 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…

The market is bad at looking beyond the next fiscal quarter.

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

#45

Post by bombcar »

QuarterReptile wrote: post #38
39896880 wrote: post #29

Earlier quoted context omitted.

Contributing to the household income. It takes 2 incomes to live anywhere but BFE in the US.

[flagged]

It usually takes two incomes to afford childcare!

I know single-income families at various levels of income across the country; it is certainly possible almost anywhere - if you want it.

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

#46

Post by bombcar »

QuarterReptile wrote: post #37
golergka wrote: post #19

Earlier quoted context omitted.

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

In the US, and presumably elsewhere, no way. My wife tried to negotiate a higher salary in exchange for forgoing health insurance a few times, to no avail.

Individually it usually doesn't work unless you're at a level where there is "only one of you" - think C-level exec.

But collectively it can work; the company may talk to the union and offer either X benefit which costs $Y or $Y applied to salaries.

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

#47

Post by smcin »

tsunamifury wrote: post #27
jfim wrote: post #12

Earlier quoted context omitted.

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).

Many many executives do not believe happiness improves productivity and in fact many believe it reduces it. Specifically midwesterner’s who think pain is honor and grit vs a waste of energy and distraction.

Interesting comment, is there any quantitative study or data corroborating regional attitudes in the US?

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

#48

Post by seanmcdirmid »

grecy wrote: post #9
jp57 wrote: 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

In the USA, you can get up to $5k or so without tax (it’s your money, but you can spend from a tax free account) to fund child care, which works out to almost half for one kid in a HCOL.

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

#49

Post by seanmcdirmid »

QuarterReptile wrote: post #37
golergka wrote: post #19

Earlier quoted context omitted.

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

In the US, and presumably elsewhere, no way. My wife tried to negotiate a higher salary in exchange for forgoing health insurance a few times, to no avail.

I’m pretty sure it isn’t up to the company, they have to provide health insurance if certain criteria are met, it doesn’t matter if your partner already has health insurance.

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

#50

Post by cco »

LunaSea wrote: post #3

They haven't solved the "not sourcing wood illegally from Romanian primordial forests" yet though. Baby steps.

They are reportedly working on it https://www.wsj.com/articles/keeping-sanctioned-russian-timb...

My impression is that it's really difficult to do at scale because it isn't trivial to tell this tree from that tree, especially post harvest and paperwork is always spoofable.

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