A minimum wage hike in January brought the wage floor at Ikea’s U.S. stores to at least $10 an hour, and now with another hike announced for next January, the floor is set to rise to almost $12 an hour.
Currently, Ikea U.S. is using the MIT Living Wage Calculator to determine wage floors in each locale. The calculator takes into account the local cost of rent, food, transportation and other costs to determine a minimum wage. In 2016, using this same measuring system, the average Ikea minimum wage across the U.S. will be $11.87 an hour, the company said.
Rob Olson, chief financial officer for Ikea U.S., said the company is seeing a reduction in turnovers by 5 percent and an increase in more qualified job seekers since the first hike went into effect.
“We’re very pleased so far,” Olson said.
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