IKEA uses pay hikes, AI to stop employees from quitting

Employee retention has been on every retailer’s mind since Covid, but now we’ve got some statistics showing how bad it got at IKEA, the Swedish furniture retailer. According to Quartz, the business news service, the company says it lost 62,000 employees globally in 2022. Quartz says that it cost IKEA about $5,000 to replace each employee—so the price tag for employees quitting was a massive $310 million. IKEA has since raised pay, benefits, and introduced more flexible work schedules. IKEA is also using AI to determine whether an employee is likely to quit, Quartz wrote this week.

Listen to our podcast with Michael McLarney interviewing Tanja Fratangeli, chief people officer at IKEA Canada, here.