IKEA Group Staff Human Resources 03/11/10 1

HR Main deliverables

FY 11-13

IKEA Group Staff Human Resources November 2010

IKEA Group Staff Human Resources November 2010 2

The IKEA Spirit

IKEA Ambassadors

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Building Business Competence

Excelling in Operations

Leading for Performance

HR Direction 2010-2015

Growing and Connecting with IKEA

IKEA Group Staff Human Resources November 2010 3

Building Business Competence• Competence Direction• Common Competence Profiles (for Retail)• Learning offer (for Retail)• Performance EvaluationExcelling in Operations• One IKEA HR• Common HR Processes and HR organisation• Principles & Guidelines for Staff planning• Organisational set-upGrowing & Connecting with IKEA• Sustainable co-worker relationship• Stimulate new ideas for improvement• Clear career map and job possibilities• Mandatory principles and guidelines for Compensation & Benefits Leading for Performance• Leadership Capabilities & Leadership Development Concept. • Future leadership 200+• Change management concept • Coaching leadership

16 actions

IKEA Group Staff Human Resources November 2010 4

Competence DirectionA simple, clear and common direction for how to build sustainable competence at IKEA in the most effective and cost conscious way - focusing on growing both business and people.

Common Competence Profiles (for Retail)Competence profiles are the foundation for building competence, recruiting, evaluations, succession etc.

Learning offer (for Retail)Achieve simplicity for the co-workers to understand what learning possibilities are available. By this we will reach a higher level of business competence, in a more efficient and cost effective way.

Performance EvaluationDesign a common, objective and most of all simple process for performance management, which is built naturally into the business year cycle and can be used across all IKEA Organisations.

Building Business Competence

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One IKEA HR (Game Changer 5)By aligning our ways of working in the HR processes, implementing common tools/it solutions and centralise transactional work we want to enable our HR professionals to deliver to our business.

Common HR Processes and HR organisationCreate a more simple HR organisation and clear matrix structure and come closer to One IKEA, working more aligned and together. Develop our HR resources in a good way focusing on our contribution to the business objectives.

Principles & Guidelines for Staff planningOur co-workers are our most important resource and our single biggest cost. We will secure that we are meeting our business needs and optimising our staff cost by implementing Principles & Guidelines for Staff planning. This we will do at the same time as we retain and develop our co-workers in a good, consistent and value based way.

Organisational set-upHR is an important business partner in changes that affect different organisational set-ups. From an HR perspective we contribute to the organisational development.

Excelling in Operations

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Principles and guidelines for Compensation & BenefitsIn order for us to attract and retain performing co-workers we need to create a fair and competitive offer. The Mandatory principles and guidelines for Compensation & Benefits within the IKEA group are communicated and shall be implemented FY12.

Sustainable co-worker relationshipIcoworker.com is a web based tool that will support all co-workers in connecting with IKEA, friends and colleagues. We will involve co-workers in social responsibility and secure insights and transfer of experience by a global approach for mentoring.

Stimulate new ideas for improvementWe will create a new way of capturing ideas from the many co-workers by using good examples from different parts of the organisation.

Clear career map and job possibilitiesIn 5 years we will have 1.000 backpackers as one part of Talent Övertag. The backpackers are young potentials doing a two times 6 months journey to different parts of the organisation. This will be a change driver for making our different development opportunities at IKEA visible for all co-workers.

Growing and Connecting with IKEA

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Leadership Concept & Capabilities To have a common understanding about leadership at IKEA. Leadership concept and capabilities are created to support the development of leaders and to clarify expectations.

Future Leadership 200+To create a pool of successors for our extended group management as one part of Talent Övertag.

Global Leadership training offer (former Change management concept and Coaching leadership)To define a global IKEA offer to support 80% of our leaders' development needs and opportunities. Remaining 20% it will always be based on a local level, in order to better accomplish specific needs.

Leading for Performance

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Growing IKEA -Together

Through people we will

make this happen!