Workplace culture and leadership support are key to the success of refugee employment programs, according to a new study from the University of Sydney, the University of Melbourne and the Stockholm School of Economics.

As Australia marks Refugee Week in the lead-up to World Refugee Day, a day designated by the United Nations to honour the strength and resilience of people forced to flee their homes due to conflict or persecution, researchers are sharing new insights into what makes refugee employment programs succeed and the challenges that remain. 

The new study is based on Ingka Group’s Skills for Employment initiative, which provides refugees with work experience, practical skills training, cultural orientation and language learning. Ingka Group is the largest IKEA franchisee, operating retail locations in 32 countries. Since its launch at the 2019 Global Refugee Forum, organised by the UN Refugee Agency UNHCR, the program has supported more than 4,300 refugees across 26 countries including Australia. In the last financial year alone, 600 participants completed the program, with 143 moving into employment within IKEA.

“The report showcases a wide range of initiatives, both small and large, that can inspire other organisations looking to take meaningful action on refugee inclusion,” said lead researcher Professor Betina Szkudlarek from the University of Sydney Business School.

“It demonstrates that impactful inclusion is not limited to large-scale programs such as that at IKEA; even relatively simple practices can make a significant difference when implemented thoughtfully.”

The study involved interviews with 57 people across 14 markets where Ingka Group operates, examining what enables refugee employment initiatives to succeed and where challenges remain.

Key findings include: 

• Workplace culture matters. Supportive teams and engaged co-workers actively help refugee colleagues integrate, strengthening an inclusive company culture for all. 

• Leadership support is important. Strong internal backing helps organisations establish and sustain refugee employment programs.

• Strong partnerships are essential. Collaboration with NGOs and community organisations helps companies connect with refugee talent and provide tailored support. 

• Local flexibility is key. Labour markets, legal frameworks and refugee demographics vary widely, requiring programs to be adapted to local conditions. 

• Language remains one of the biggest barriers. Even when refugees have strong professional skills, limited language proficiency can slow integration and career progression.

The research highlighted the IKEA organisational culture, which encourages co-workers to actively support new colleagues. In many markets, this takes the form of a buddy system, where existing co-workers help new colleagues with refugee backgrounds navigate daily work routines and workplace expectations.

“One person can make a difference,” Professor Szkudlarek said. “While IKEA’s global strategy created the foundation for the international rollout of the refugee inclusion program, the commitment and creativity of individual leaders in each market were critical in shaping how the program came to life locally and the breadth of initiatives that emerged.”

The study also shows that refugee integration programs need to remain flexible and locally adapted. Labour market conditions, legal systems, refugee demographics and cultural norms vary significantly between countries, meaning local teams must adapt the global program to their specific context.

In some markets, for example, IKEA stores organise Open Days, inviting refugee candidates to visit the workplace, learn about different roles and receive guidance before applying for positions. This helps lower barriers to entering the labour market and prepares candidates for recruitment processes.

Ingka Group and UNHCR have been partnering across developing tools to enhance refugee employment in practice, advocating for fostering refugee inclusion and integration, and changing the narrative, bringing together Ingka Group’s business expertise and UNHCR’s nearly 75 years of experience in refugee protection.

“This new research confirms something we’ve seen through our own experience: when refugees are given the opportunity to gain local work experience, learn the language and be a part of an organisation, they thrive in the workplace,” said Karen Pflug, Chief Sustainability Officer at Ingka Group.

“It also highlights what makes these initiatives work, from supportive workplace cultures to strong partnerships in local communities. At a time when millions of people have been forced to flee their homes, businesses can play an important role by opening pathways to employment while strengthening their own teams with new perspectives, resilience and skills.”

Professor Szkudlarek said the broader public conversation about forced displacement can also become polarised, making it important for organisations to clearly communicate the value of refugee inclusion, both socially and economically. 

“Employment is one of the most powerful ways the business sector can contribute to refugee inclusion and broader social cohesion. But meaningful inclusion goes beyond hiring alone. Challenging misconceptions and negative narratives around forced migration is equally important, and IKEA’s ‘Change the Narrative’ initiatives demonstrate how organisations can actively foster greater understanding, empathy, and social connection within communities,” Professor Szkudlarek said.

For Ingka Group, the ambition is not only to support refugees directly, but also to encourage other companies to take similar steps. In support of this, Ingka Group open-sourced a Skills for Employment-toolkit, co-developed with UNHCR, to share practical guidance and lessons learned from the program with organisations interested in launching similar initiatives. 

Ingka Group has committed to supporting at least 3,000 additional refugees and asylum seekers between 2024 and 2027 through job training, language courses and work experience that prepare participants for employment at IKEA or with other organisations.

The full study on the Skills for Employment program is available via the University of Sydney here.

Declaration

This report was commissioned and funded by Ingka Group. The research was designed, conducted, analysed, and reported independently by the research team at the University of Sydney, University of Melbourne and Stockholm School of Economics. Ingka Group provided access to participants and organisational information but had no role in the interpretation of findings, the development of conclusions, or the formulation of recommendations. The views expressed in the report are those of the authors and do not necessarily reflect the views of Ingka Group or its affiliated organisations.