The Swedish retailer is expected to announce today that it will raise the workers’ average hourly rate to $10.59, up from the current $9.17, on Jan. 1.

About half of Ikea’s 11,000 hourly store workers will get a raise, the AP reported. Rob Olson, the chain’s acting U.S. president said the new approach shifts away from the practice of adjusting wages based on its competition.

“Now, we decided to focus less on the competition and more on the co-workers,” Olson told the AP. He said the move will improve the company’s relationship with employees and reduce turnover, which already is low by industry standards.

Ikea’s U.S. division ranks No. 2 on Furniture/Today’s Top 100 U.S. Furniture Stores list, with furniture, bedding and accessories sales of $2.69 billion in 2013, up 6.5% from the previous year. Total revenues of all products was $4.4 billion last year.