• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

'I literally was crying last night because I’m nervous about what I’m going to find out': a record 51% of Americans aren't 'cost secure' on health

2

Jeff Bezos pledged $10 billion for climate change. With the 2030 clock ticking, his wife, Lauren Sánchez Bezos, is leading the charge to spend it

3

The Great Recession’s missing children are finally bringing college’s financial crisis into sight. Welcome to the ‘enrollment volatility’ era

1

'I literally was crying last night because I’m nervous about what I’m going to find out': a record 51% of Americans aren't 'cost secure' on health

2

Jeff Bezos pledged $10 billion for climate change. With the 2030 clock ticking, his wife, Lauren Sánchez Bezos, is leading the charge to spend it

3

The Great Recession’s missing children are finally bringing college’s financial crisis into sight. Welcome to the ‘enrollment volatility’ era
Retail100 Best Companies to Work For

At Ikea, Everybody Is Equal

By
Beth Kowitt
Beth Kowitt
Down Arrow Button Icon
By
Beth Kowitt
Beth Kowitt
Down Arrow Button Icon
March 10, 2016, 6:30 AM ET
Courtesy of Ikea
Add Fortune on Google for similar content.

During a visit in February to Ikea’s store in Miami, the company’s U.S. president, Lars Petersson, started talking trash.

It began when a worker there told Petersson about the difficulty he had dragging the store’s garbage all the way through the warehouse to the dumpsters. Petersson suggested that a forklift could save a lot of time and effort, but no forklift was free in the warehouse. So Petersson went and found one. The employee balked again—he didn’t know how to drive a forklift. So Petersson quickly arranged to get the worker trained in operating heavy machinery.

ikeabox

See the full list of Fortune’s 100 Best Companies to Work For at fortune.com/bestcompanies, where you can also find job searching tips, career advice, and secrets from recruiters.

“It turned out to be a super–detailed question,” Petersson says. And at Ikea, this is the sort of banal problem solving that falls to the company’s top executives. Yes, even the head of the U.S. business has to think about how to take out the trash.

“Hierarchy is not a big Swedish thing,” Petersson explains. His title, “country manager,” lacks so much conceit that it confuses Americans. Only a handful of executives even have business cards. Everyone is on a first-name basis and sits side by side at Ikea desks, naturally, in an open floor plan at the company’s U.S. “service office” (Ikeaspeak for headquarters) in Conshohocken, Pa. Word to the wise: If you have an ego that needs stroking, Ikea is not the workplace for you.

The furnishings giant, with $5 billion in U.S. sales (and some $36 billion globally), has become a living laboratory of what happens when you put a Swedish spin on notions like egalitarianism and work-life balance in an American workplace. At the most basic level, the company’s Scandinavian ideals have brought generous policies on wages and benefits compared with the rest of Ikea’s retail cohort. Last year it began basing its pay on the MIT Living Wage Calculator, with hourly employees receiving an average of $15.45 an hour; meanwhile, the lowest starting pay is now set at $11.87—or nearly five bucks above the federal minimum wage. Part-timers are offered health benefits after just 20 hours of work per week.

Ikea culture discourages workaholics—much like its home country. After a year on the job, full-time employees receive an essentially unheard-of 24 days of paid time off and five sick days—and the company has an aversion to anybody working long hours. “My boss would say, ‘Go home, you’ve been here too long,’ ” says Nabeela Ixtabalan, who is head of human resources for the U.S. business. “Here, if you can’t do your job successfully in a reasonable amount of time, you’re doing something wrong.” Petersson, for his part, takes weekends off. (“All of them, basically,” he says.)

Workers at a Colorado store celebrating the Mile High Sports Spring Games, which raises funds for activities teams at a Denver high school.Courtesy of Ikea

Four Reasons Employees Love Ikea
Benefits, benefits, benefits…and a culture of inclusion

  1. Retirement bonus: Last fiscal year, all full-time U.S. employees, regardless of salary, got an extra $1,182 in their retirement plans, beyond the company’s 401(k) match. Ikea calls the program “Tack!”: Swedish for “thank you.”
  2. A voice in benefit options: The company regularly surveys its employees to better understand what kinds of benefits they would like to have.
    That led to the addition of pet insurance as an option this year.

  3. Loads and loads of time off: Full-time employees who have been with the company 10 years get 34 days of paid time off, plus five sick days.

  4. And no glass ceiling: Not only are about 50% of all Ikea employees in the U.S. women, but they also make up more than half of senior managers and executives.



Leaving work behind for a monthlong vacation requires a deep faith in your co-workers that they can do the job without you. “We actually work with trust rather than control,” Petersson says. “That’s rooted in simplicity and our leveling of society in Sweden.” Swedes rank as some of the most trusting people in the world. “We don’t talk about taking a risk on a person,” Ixtabalan explains. “We talk about trusting this person. That to me is not semantics. It’s a very meaningful difference.”

Ixtabalan is a prime example. Last year she was a store manager in Houston, and today is U.S. head of human resources—making her part of the group of women that constitute more than half of all of Ikea’s senior managers and executives.

Since coming to the U.S. in 1985, Ikea has been trying to sell a vision of inclusion along with its flat-packed furniture. It featured a gay couple in a mainstream commercial more than two decades ago, and in 1995, Ikea started offering domestic partner benefits. In January the company’s benefits started covering gender reassignment surgery. These policies don’t always sit well in more conservative markets. In Italy, for example, a politician reportedly called for a boycott of the company after Ikea organized an event in support of gay marriage.

Petersson is unfazed by the criticism. “We don’t make different considerations in different countries,” he says. “It’s not that we aren’t appreciative and interested in local culture. We are very much. But there are some fundamental things that we are not negotiating.” 

A version of this article appears in the March 15, 2016 issue of Fortune with the headline “At Ikea: No Ranks, No Rancor.”

About the Author
By Beth Kowitt
LinkedIn iconTwitter icon
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

‘I didn’t want a refund, I didn’t want my money back’: meet a grandma who paid $485 for World Cup tickets and never got them
Travel & LeisureSoccer
‘I didn’t want a refund, I didn’t want my money back’: meet a grandma who paid $485 for World Cup tickets and never got them
By R.J. Rico, Emilie Megnien and The Associated PressJune 20, 2026
21 hours ago
A man helps a woman pick meat in the grocery store
EconomyFood and drink
Beef is becoming a luxury as prices stay at record highs. They likely won’t come down until 2028, says Farm Bureau
By Jacqueline MunisJune 20, 2026
24 hours ago
Record revenues. Record profits. Record revenue per employee. The Fortune 500 is richer than ever—and employing fewer people
EconomyFortune 500
Record revenues. Record profits. Record revenue per employee. The Fortune 500 is richer than ever—and employing fewer people
By Claire ZillmanJune 19, 2026
2 days ago
A shopper looks at a beverage display June 4, 2026 at the Market 32 Supermarket in South Burlington, Vermont.
EconomyConsumers
Miserable K-shaped economy might actually be fading, as lower-income families bounce back, says Bank of America
By Eleanor PringleJune 19, 2026
2 days ago
Piyush Patel
Commentaryshopping
Black Friday already sorted the winners from the losers. Your industry is next
By Piyush PatelJune 19, 2026
2 days ago
Thasunda Brown Duckett, TIAA CEO, speaks onstage during a live taping of "Earn Your Leisure" at Martin Luther King Jr. International Chapel at Morehouse College on January 22, 2024 in Atlanta, Georgia.
FinanceFortune 500 Companies
Meet the 11 Black Fortune 500 CEOs leading companies with over $432 billion in combined revenues
By Cheyann HarrisJune 19, 2026
2 days ago

Most Popular

'I literally was crying last night because I’m nervous about what I’m going to find out': a record 51% of Americans aren't 'cost secure' on health
Health
'I literally was crying last night because I’m nervous about what I’m going to find out': a record 51% of Americans aren't 'cost secure' on health
By Ali Swenson, Amelia Thomson-Deveaux and The Associated PressJune 20, 2026
18 hours ago
Jeff Bezos pledged $10 billion for climate change. With the 2030 clock ticking, his wife, Lauren Sánchez Bezos, is leading the charge to spend it
Environment
Jeff Bezos pledged $10 billion for climate change. With the 2030 clock ticking, his wife, Lauren Sánchez Bezos, is leading the charge to spend it
By Sydney LakeJune 19, 2026
2 days ago
The Great Recession’s missing children are finally bringing college’s financial crisis into sight. Welcome to the ‘enrollment volatility’ era
Economy
The Great Recession’s missing children are finally bringing college’s financial crisis into sight. Welcome to the ‘enrollment volatility’ era
By Tristan BoveJune 20, 2026
1 day ago
Nvidia CEO Jensen Huang says electricians and plumbers will be needed by the hundreds of thousands in the new working world
Success
Nvidia CEO Jensen Huang says electricians and plumbers will be needed by the hundreds of thousands in the new working world
By Preston ForeJune 20, 2026
24 hours ago
A new trade war may be brewing. This time, Europe is taking a page from Trump's playbook — 'We no longer live in a world of pink ponies and rainbows'
Economy
A new trade war may be brewing. This time, Europe is taking a page from Trump's playbook — 'We no longer live in a world of pink ponies and rainbows'
By Jason MaJune 20, 2026
13 hours ago
Microsoft boss Steve Ballmer publicly dismissed Chrome as a 'rounding error'—but Google’s CEO says he used the jab as fuel to win the browser-wars
Success
Microsoft boss Steve Ballmer publicly dismissed Chrome as a 'rounding error'—but Google’s CEO says he used the jab as fuel to win the browser-wars
By Preston ForeJune 17, 2026
4 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.