The case discusses IKEA’s talent management initiatives and its corporate culture. The retailer recruited employees based on values and beliefs rather than just on skills, experience, and other credentials. It fostered an ‘egalitarian culture’ that offered full benefits even to part-time workers who worked for 20 hours or more per week. In 2017, global research and consulting firm Great Place to Work and Fortune named IKEA US among its 2017 Fortune 100 Best Companies to Work For. Analysts opined that its talent management initiatives and its strong corporate culture provided IKEA with a competitive advantage.

Though IKEA was touted to be an ideal employer in the retail market, it was hit with a lawsuit in the US court over alleged age discrimination in February 2019. Some IKEA employees stated that the retailer had fostered a culture of age discrimination wherein young workers were recruited and promoted over workers who were 40 years and older, thereby violating the Age Discrimination in Employment Act. IKEA had faced similar lawsuits alleging age discrimination in 2018. To add to its troubles, in February 2019, IKEA faced a backlash for publishing a catalog for Israel’s Haredi (ultra-orthodox) community featuring photos of Haredi men and boys while excluding images of women or girls. The lawsuit demanded US$4 million compensation from IKEA for the damage caused to Haredi women.

IKEA, however, maintained that its culture placed emphasis on gender diversity. The retailer had a 50/50 rule i.e. employing an equal percentage of men and women on its management team. Critics opined that IKEA as a company which claimed to value equality should not pave the way for more discrimination. Rather, they felt that the retailer should be working toward an equitable society where women were viewed as equal members of the society, and put in place an effective global talent management system to acquire and retain its talent in other international markets.

Human Resource and Organization Behavior Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies

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Issues

The case is structured to achieve the following teaching objectives:

	Analyze how IKEA’s talent management initiatives contributed to its success.
	Understand the importance of talent/people in gaining a competitive advantage.
	Understand how IKEA’s corporate culture helped the employees in providing excellent service to its customers.
	Understand how a company can put in place an effective global talent management system.
	Understand the issues and challenges faced by IKEA regarding gender and age discrimination at the workplace.

Contents

INTRODUCTION

BACKGROUND NOTE

CORPORATE STRUCTURE

TALENT MANAGEMENT INITIATIVES

Keywords

Talent management; corporate culture; egalitarian culture; recruitment; training and development; career development; work/life balance; mentoring; Values; corporate structure; diversity; discrimination; employee turnover; Global human resource management; strategic human resource management"

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