The popular store, Ikea, is making headlines for its new policies. Ikea’s U.S. division is raising the minimum wage for thousands of its retail workers, in accordance with the increase in the cost of living in each city.
Rob Olson, Ikea's acting U.S. president, says the latest move shows how he feels about Ikea employees.
"Now, we decided to focus less on the competition and more about the co-workers," Olson told The Associated Press in an interview this week. Olson said that he was guided by its vision of "creating a better life."
There are 38 existing retail locations in the United States. Three new locations are set to open before the end of 2015.
The increase is based on a living-wage calculator, that takes into consideration the everyday costs of food and transportation, according to The Wall Street Journal. Ikeas is also looking at standard benefits for workers.
New jobs for retail workers are common. Olson believes that the increase in wages will reduce the worker turnover. Almost 20% of full-time retail workers will leave their jobs annually, according to the National Retail Federation.
Ikea is a Swedish furniture company.