retail news in context, analysis with attitude

In Minnesota, the Star Tribune reports that "IKEA's U.S. division is raising the minimum wage for thousands of its retail workers, pegging it to the cost of living in each location, instead of its competition.

"The 17 percent average raise, announced Thursday, is the Swedish ready-to-assemble furniture chain's biggest in 10 years in the U.S. The pay increase will take effect Jan. 1. It will translate to an average wage of $10.76 an hour, a $1.59 increase from the previous $9.17.

"About half of IKEA's 11,000 hourly store workers will get a raise."

The story says that Rob Olson, the division's acting president, says that in making the decision "he was guided by its vision of 'creating a better life' for its workers. That will improve the company's relationship with employees and reduce worker turnover, which he says is already well below the retail industry's average."
KC's View:
Good for him, and good for IKEA. It isn't a fortune, but every little bit helps. Besides, as I like to say here on MNB, it is about letting your employees know that they are an investment, not a cost…