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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


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.

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Less turnover is a good reason to adopt higher wages.