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World - Europe

IKEA gives employees a day's profits

Ikea store
IKEA is giving Saturday's profits to its 40,000 employees worldwide  

October 10, 1999
Web posted at: 11:58 a.m. EDT (1558 GMT)


In this story:

'Companies have to stand out'

Workers could get $1,500 each

RELATED STORIES, SITES icon



From Correspondent Frank Buckley

ELIZABETH, New Jersey (CNN) -- IKEA, the worldwide Swedish home furnishings store, gave its employees an unusual bonus Saturday -- it turned over all of the day's profits to them.

Profits generated Saturday from all 152 IKEAs -- including those in the United States, from Virginia to Burbank -- will be divided among the store's 40,000 employees.

 VIDEO
VideoCNN's Frank Buckley reports that Saturday, the employees got IKEA's profits
Windows Media 28K 80K
 
  MESSAGE BOARD
Labor woes
 
The giveaway echoes the trend of companies devising innovative strategies to reward and retain workers in today's tight labor market.

One New Jersey company gives its employees BMWs to drive as long as they stay with the company. Others offer stock options or child-care services.

"It was just an honest way to say thank you," said Jan Kjellman, IKEA's North American division president, of the giveaway.

Kjellman said every employee, from part-timers to division heads, would get his or her share of the day's store receipts.

"I'm a co-worker myself and I love it too," Kjellman said.

Employee
Each IKEA worker is expected to get about $1,500 from the giveaway  

'Companies have to stand out'

Employment experts say companies have to stand out to attract and keep talented workers.

"It really is an employees' market out there," said Gail Corvette, with Hewitt Associates.

"Companies are competing for talent, so whenever somebody can do something innovative and creative that will get employees' attention and help share the company's success with employees, it should get noticed," Corvette said.

The IKEA event got the attention of employees at its store in Elizabeth, New Jersey.

"I'm all excited," said one IKEA employee there, contemplating her bonus. "I'm ready for my vacation."

Workers could get $1,500 each

IKEA predicted its stores would bring in $45 million to $60 million Saturday. That would amount to at least $1,500 for each of the company's employees.

The company also offered customers free chocolate and complimentary massages, and extended store hours.



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Style - Word leaks out about IKEA's inflatable furniture
July 26, 1999
The latest trend in childrearing is the family bed
March 21, 1997

RELATED SITES:
IKEA Worldwide
Profit Sharing/401(k) Education Foundation
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